Every time v$ are transacted, 1.6% of what has been transacted is burned from supply.

When v$ move on Layer 1 you can see the real time burns happening in the wallet below.

When v$ move on Layer 2 this does not show in this location, instead it accumulates and will reflect prior to VOW auctions being held.

It should be understood that the VOW/v$ auction ensures re-minting of v$ in exchange for burned VOW. This means that when v$ (or any other vCurrency) requires to be re-minted, after taking into account localised ecosystem requirements imposed by the MVDs, $VOW holders can chose to swap their VOW for v$ at a discount (in an auction mechanic) - Their $VOW is burned and the v$ re-minted.

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