Burn Mechanism
IoTAI's deflationary token economics through strategic buybacks and burns.
Overview
The IoTAI protocol implements a burn mechanism designed to reduce the circulating supply over time, creating deflationary pressure and supporting long-term token value appreciation.
Buyback Strategy
Random Buyback Triggers
Buybacks are triggered at random intervals to prevent market manipulation and front-running:
Unpredictable timing ensures fair market conditions
Prevents traders from anticipating and exploiting buyback schedules
Creates organic buying pressure across different market conditions
Community Announcements
Following each buyback execution, the community receives transparent reporting:
Announcement of buyback completion and token amounts
Transaction details and blockchain verification
Impact on circulating supply and burn statistics
Burn Allocation
Of the tokens acquired through buybacks, the protocol allocates approximately 20% to permanent burns:
Reduces the available supply on the market
Creates deflationary pressure on token economics
Supports long-term value appreciation for holders
Funding Sources
Burn mechanism funding comes from:
Portion of the 5% buy/sell tax revenue
Platform fee revenue from trading operations
Ecosystem fund allocations when appropriate
Revenue from premium feature subscriptions
Transparency & Tracking
Burn Records
All burns are recorded on-chain for full transparency
Community can verify burn transactions independently
Regular reporting on total tokens burned and circulating supply
Community Updates
Periodic announcements of burn events
Transparent reporting of buyback activities
Impact analysis on token supply and market dynamics
Long-Term Impact
The burn mechanism supports the ecosystem by:
Creating deflationary pressure over time
Rewarding long-term holders through reduced supply
Demonstrating commitment to token value appreciation
Building sustainable tokenomics for platform growth
Implementation Timeline
The burn mechanism will be implemented progressively as the platform generates revenue and reaches operational milestones, ensuring sustainable execution without compromising platform development.