NOBS will burn on October 23rd due to a lack of circulation and in line with the project’s whitepaper, according to the NOBS token development team.
Too Many NOBS Spoil the Party, Fail to Gain Penetration
Ten billion NOBS ERC20 tokens were initially created, with the intention to burn any surplus NOBS should the need arise. As the team behind the project has previously stated:
“We ultimately created a total supply of 10,000,000,000 because we could not accurately predict how many we would need to distribute throughout all airdrop rounds.”
The NOBS token airdrop took place in May. The project — and its accompanying tokens — were intended to allow cryptocurrency community participants to, in the words of backer John McAfee, “self-regulate, rate & review ANY crypto-related project to help eliminate scams.”
If only they were around when McAfee called notorious 419 Nigerian scam artist Ebi Dominic’s Finacoin project “unique and stellar.”
Using NOBS to Eliminate Scams
The NOBS project — cheeky and seemingly well-intentioned — is set to see a burn of a whopping three-quarters of its token supply. Interest in free NOBS was limited to around 2.5 billion, with a community of close to 100,000. There are currently almost 60,000 members in the No BS Crypto telegram chat channel.
Per the project’s website, using No BS tokens, “the community reviews ICOs, Exchanges, and other projects to separate the BS from the No BS.” The process was designed so that ICOs could submit their projects for a review to the No BS community.
Members would be able to bid — by offering NOBS — to be part of the team that reviewed the ICO. Having completed the review, they would then be compensated. The plan was for the compensation to be greater than the cost of bidding to review.
It’s My NOBS, and I’ll Review If I Want To — Tokenomics and NOBenomics
ICOs that sought a NOBS review would be assessed along the following lines:
White paper analysis: 6 reviewers
Tokenomics analysis: 3 reviewers
GitHub analysis: 7 reviewers
Smart contract analysis: 4 reviewers
Founders and advisory team research: 8 reviewers
Final report assembling: 2 reviewers
The ICO in question would be able to present itself as verifiably NOBS-endorsed were it rated favorably. Unfortunately, with a “tokenomics analysis” being part of the review, NOBS’s endorsement might appear potentially shallow.
The reviews would have been conducted by an anonymous community of NOBS token holders, with unknown credentials. They would have also had no real skin in the NOBS game, having parted with little effort to be granted airdropped NOBS to begin with. The project itself appears to have overshot in terms of tokenomics analysis, given there are seven-and-a-half billion too many NOBS in the community.
Even McAfee himself pleaded for “no more ERC20 tokens” during an August debate.
On news that NOBS will burn on October 23rd, they were trading up an astonishing 84 percent to $0.000646 USD at press time — the equivalent of about 0.04 Venezuelan Bolivars or roughly 0.23 Zimbabwean Dollars, a currency that has been discontinued.
Have your say. Given that 75 percent of all NOBS will burn, is the review and ratings project dysfunctional?
Images via Pixabay
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