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How it works
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
In order to get $BFY, you would be required to send at least 1 batch into the Smart Contract in a cycle.
1 batch = 0.3 $EGLD in total
1 batch = 0.15 $EGLD + 0.15 $EGLD in $MEX/$ONE/etc (similar to adding liquidity on a Decentralized Exchange - DEX)
When the cycle ends, the Smart Contract should distribute the $BFY allocated for that cycle (let's say we're on the 1st day, so it's 10,000 $BFY to be distributed) proportionally with the number of batches sent by the relevant user.
The maximum number of batches allowed per user is set to 10,000.
There could be more tokens listed in Burnify alongside $MEX. At main net launch, users would be able to create batches with AERO, BSK, CTP, ESTAR, HYPE, KRO, MEX, MINNIE, MOOVE, ONE, PADAWAN, SFIT, XAPES, XBID, XBONK, ZPAY
At the end of every cycle, all these tokens except $EGLD should be BURNED by means of the corresponding Smart Contract.
Given the fact that a peg for tokens is envisioned to be equal to 0.15 $EGLD, users would be able to select a slippage. Any extra tokens sent to the Smart Contract would be returned. It would work similarly to DEX slippage.
Example: 1 batch = 0.15 $EGLD + 88 $ONE Slippage set to 1%: user will send 0.15 $EGLD + 88.88 $ONE.
If $ONE price fluctuates more than 1%, the transaction should fail. If the price does not fluctuate, the remaining $ONE would be sent back to the user (0.88 $ONE in our case).
Every cycle, all $EGLD is designed to go into a pool and to be distributed at the end of the cycle as follows:
90% -> would go proportionally to all the cycle participants (anyone who burned at least 1 batch) that are $BFY stakers (see more in the staking section);
5% -> would go to the team for administrative costs (1.5% team, 0.5% marketing, 0.5% design, 0.5% hosting, 0.5% new features development, 0.5% operations and administration, 0.5% partnerships, 0.5% reserve fund); 5% -> would go BUFU NFT strenght holders
When a cycle ends, $BFY tokens assigned to a user are envisaged to be automatically staked in the protocol.
If the user chooses to claim the $BFY tokens, they would no longer generate a protocol fee ($EGLD) for the user, including the cycle in which they were claimed.
To be able to earn $EGLD again, the user must stake the $BFY tokens.
NO lock/unbonding period for is projected to affect the claiming of $BFY.
There is NO lock/unbonding period for claiming $BFY.
All rewards afforded to users in protocol fees would be available to withdraw at any time.
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.