Dear $PAID Community,
As part of our continuous efforts to enhance the value and stability of the $PAID token, we are excited to explain our token burn process which is a crucial part of our unique flywheel.
What is a Token Burn?
A token burn refers to the process of permanently removing a certain amount of cryptocurrency tokens from circulation.
This is typically achieved by sending the tokens to a burn address, which is a wallet that can only receive tokens and never send them out.
Once the tokens are sent to this address, they are effectively destroyed, reducing the total supply of the token.
Why Token Burns Matter
Token burns serve several critical purposes in a cryptocurrency ecosystem:
- Reducing Supply: By decreasing the total supply of tokens, burns help to create scarcity, which can potentially increase the value of the remaining tokens.
- Increasing Value: With fewer tokens in circulation, the value of each remaining token may increase, benefiting holders.
- Market Stability: Regular burns can help stabilise the token’s price by removing excess supply from the market.
- Enhancing Credibility: Burns demonstrates commitment to the long-term health and sustainability of the project, fostering trust and confidence among the community.
Our $PAID Token Burn Process
Our upcoming token burn process is designed to ensure transparency, efficiency, and maximum impact. Here’s a detailed look at how it works:
- Receiving Project Tokens 🖐️
First, our flywheel is primarily driven by the launched project’s token. These tokens are a crucial part of our ecosystem, as they represent the fuel we use to execute our buyback and burn strategy. [However do note that PAID Network retains the option to also facilitate this process in stable coin, depending on market conditions].
By managing these tokens effectively, we ensure that our overall supply and demand dynamics are maintained in a way that benefits the entire $PAID community.
- Liquidation to Stablecoins 🪙
Using a script to execute a linear liquidation based on the vesting schedule. This means that if the next vesting is in 30 days, we execute a 30-day linear liquidation.
If there is a 2-month lock before the next vesting, we execute a 60-day liquidation. The purpose of this liquidation process is to convert project tokens into stablecoins (USDT/USDC) in a manner that avoids market disruption.
The tokens are sold gradually, ensuring a steady conversion that doesn’t negatively impact the token’s market price. The stablecoins received from this process are then stored in our wallet, ready for the next step.
- $PAID Buyback 💰
Next, we use another script to buy back $PAID tokens on a decentralised exchange, following a linear pattern similar to the token liquidation process.
The buyback process may be executed on one or multiple chains, depending on the strategic needs of our ecosystem.
By buying back $PAID tokens, we effectively reduce the circulating supply, which can help to increase the value of the remaining tokens.
All transactions during this phase are meticulously tracked and displayed on our Flywheel Dashboard, ensuring full transparency.
Our goal is to automate the transition from the buyback process to subsequent steps to ensure efficiency and accuracy.
- Burn 🔥
Immediately after each buyback transaction, 50% of the purchased $PAID tokens are automatically sent to a burn wallet, permanently removing them from circulation.
This strategic reduction in supply helps to increase the value of the remaining tokens.
The burn process is crucial for maintaining a healthy balance between supply and demand, and it demonstrates our commitment to enhancing the long-term value of $PAID tokens for our community.
- Airdrop 🪂
After each buyback transaction, 25% of the purchased $PAID tokens are airdropped to sPAID holders.
This step is designed to reward our loyal community members and encourage continued participation in our ecosystem.
By distributing a portion of the tokens back to our holders, we not only incentivize long-term holding but also foster a sense of community and shared success.
- Liquidity Provision & Quest Incentives🚿
The remaining 20% of the purchased $PAID tokens are automatically allocated to the liquidity pool. This ensures sufficient liquidity for trading and supports market stability.
Maintaining adequate liquidity is essential for the smooth functioning of our marketplace, allowing for efficient and seamless transactions.
This allocation also helps to stabilise the token’s price, providing a buffer against market volatility.
5% is then allocated towards marketing & quest incentives that will be found within PAID Networks unique Rewards Odyssey platform which will be launching soon.
Summary of the Benefits of Our Token Burn & Buyback Process
- Enhanced Market Stability: Regular burns help to remove excess supply from the market, preventing large price swings and promoting stability.
- Rewarding Loyalty: Airdropping and quest allocating a portion of the purchased tokens to sPAID holders incentivizes long-term holding and active participation & gamification of our ecosystem.
- Maintaining Liquidity: Allocating tokens to the liquidity pool ensures that there is always sufficient liquidity for trading, supporting a healthy and stable market.
Do Note the Upcoming Burn Process Schedule
The next token burn process will follow the same flow as our buyback process, ensuring a steady and systematic reduction of $PAID tokens from circulation.
This process will span over a period, not confined to a single day, to maintain stability and effectiveness.
We will provide regular updates and track the progress on our FlyWheel Dashboard for full transparency.
Our token burn process is a crucial component of our strategy to enhance the value and stability of the $PAID ecosystem.
If you have any questions or need further assistance, feel free to reach out through our community channels or Telegram.
About PAID Network
Our mission is to connect highly vetted founders with brilliant ideas for curated projects and offerings with crowd-sourced funding and best-in-class incubation tools and advisors to bring the vision of founders and creators to fruition for the benefit of all.
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