⚙️How it works
Last updated
Last updated
BurnifyApp operates on a cycle-based system, with each cycle lasting approximately 24 hours. During every cycle, a predetermined amount of $BFY tokens is minted. The initial cycle begins with the minting of 10,000 $BFY tokens, decreasing by 0.2% with each subsequent cycle. For example, the first day mints 10,000 $BFY, the second day 9,980 $BFY, and so forth, reaching around 5,000 $BFY by the 365th day and eventually tapering off to zero around the 22,630th day.
The process is designed to happen in cycles. Every cycle would take ~24 hours.
Every cycle a fixed quantity of $BFY is set to be minted. 1st day should start with 10,000 and decrease by 0.2% every cycle.
1st day: 10 000 $BFY 2nd day: 9 980 $BFY ... 365th day: 5 000 $BFY ... ~22630th day: 0 $BFY
To acquire $BFY tokens, users must send at least one batch to the Smart Contract within a cycle. Each batch requires a total contribution of 0.03 $EGLD, split as follows:
1 batch = 0.03 $EGLD in total
1 batch = 0.015 $EGLD + 0.015 $EGLD in $MEX/$ONE/etc
At the end of each cycle, the Smart Contract should distribute the allocated $BFY tokens proportionally based on the number of batches each user has contributed. For instance, on the first day, 10,000 $BFY should be distributed to participants who have sent batches. The maximum number of batches allowed per user is set to 10,000.
There could be more tokens listed in Burnify alongside $MEX. BurnifyApp supports the burning of multiple tokens within the MultiversX ecosystem, including but not limited to $MEX, $ONE, $JEX, $RARE, $XLH, $CPA, $BSK, $XBID, $UPARK, $XBONK, $HYPE, $CTP, $ESTAR, $BHAT, $SFIT, $XAPES, $AERO, $PADAWAN, $ZPAY, $KRO, etc. At the end of each cycle, all tokens except $EGLD should be burned through their corresponding Smart Contracts, ensuring effective supply reduction.
At the end of every cycle, all these tokens except $EGLD should be BURNED by means of the corresponding Smart Contract.
Users should have the option to set a slippage percentage when creating batches to account for token price fluctuations. The target peg for tokens is 0.015 $EGLD per batch. For example, if a user sets a slippage of 1% and attempts to burn 88 $ONE tokens, the Smart Contract should require 88.88 $ONE. If the price of $ONE fluctuates beyond the set slippage during the transaction, the batch should fail. Otherwise, any excess tokens beyond the slippage tolerance should be returned to the user.
Example: 1 batch = 0.015 $EGLD + 88 $ONE Slippage set to 1%: user will send 0.015 $EGLD + 88.88 $ONE.
All $EGLD contributions in a cycle should be pooled and distributed as follows:
90% should be distributed proportionally to all cycle participants who are staking $BFY.
5% should be allocated for administrative costs, including team expenses, marketing, design, hosting, new feature development, operations, partnerships, and reserve funds.
5% should be allocated to BUFU NFT strength holders.
At the end of each cycle, $BFY tokens assigned to a user should be automatically staked within the protocol. If a user chooses to claim their $BFY tokens, they will no longer generate protocol fees ($EGLD) for the current and subsequent cycles. To resume earning $EGLD rewards, users must re-stake their $BFY tokens.
There is no lock or unbonding period required for claiming $BFY.
There is NO lock/unbonding period for claiming $BFY.
All rewards earned through protocol fees ($EGLD) would be available for withdrawal at any time, allowing users to access their earnings as needed.
Unclaimed $BFY tokens would be automatically staked within the protocol, so the process of claim -> stake can be deemed redundant.
Claimed or unstaked $BFY tokens need to be staked back into the protocol in order to be able to receive further rewards.
In order to avoid flash loans, after staking $BFY, it was settled that the users wouldn't be able to withdraw $BFY tokens for the current cycle and the next cycle, but they would still generate protocol rewards.
Participating in the token-burning process would offer a range of benefits for users and the ecosystem:
Earn rewards: Users receive $BFY tokens and $EGLD rewards for their contributions further generating locking benefits. Provide a burning service: Burning project tokens in exchange for fairly determinable amounts of $BFY tokens can provide desirable benefits for some users. In addition, for those who would still hold that respective project token, this may enhance its scarcity.
Foster ecosystem growth: The process would encourage long-term commitment, promoting a healthy and robust community that can contribute based on an outstanding concept to the $BFY token's success within the Web3 environment. Support scarcity of your project tokens: By removing tokens from circulation, burning can help maintain the overall value and relevance of the project tokens.
Incentivize engagement: The process may attract users to actively engage each cycle, driving further growth and adoption.
Promote sustainable growth: By managing token supply and distributing rewards, the process encourages sustainable growth, benefiting the ecosystem in the long run.
Claim $BFY: At any point, you would have the option to claim your $BFY tokens and trade them on a DEX.