Hyperdeflation and Elasticity
UNIRA Token - A Hyperdeflationary and Elastic Supply Protocol
Last updated
UNIRA Token - A Hyperdeflationary and Elastic Supply Protocol
Last updated
At the genesis of the UNIRA protocol, 1 billion UNIRA tokens are minted. A pivotal aspect of the protocol lies in the application of a fixed 6% tax on every UNIRA token transaction. This tax serves a dual purpose: to contribute to the sustainability of the protocol and to induce a continuous reduction in the total token supply.
This mechanism can be represented as:
Tax Amount = 6% * Transaction Amount
Of the tax amount, 1/3rd is immediately allocated to a token burn event. This entails the removal of a portion of tokens from circulation, thereby decreasing the overall supply. The burned token amount can be stated as:
Token Burned = (1/3) * Tax Amount
This approach systematically curtails the token supply, introducing a deflationary pressure that dynamically impacts the circulating tokens.
As the token burns progress with each transaction, the total UNIRA token supply experiences a continuous reduction. When the token supply reaches the predefined threshold of 100 million tokens, a major event is triggered: the protocol halts, a Relaunch event ensues, and one Season concludes. Following the Relaunch, the total token supply is reset to 1 billion tokens for the subsequent Season.
The Relaunch mechanism is expressed as:
Relaunch Trigger = [Total Supply reaches 100 million tokens] Or [365 days has passed from genesis]
The UNIRA protocol's hyperdeflationary nature, combined with the elastic supply model, creates an ever-evolving ecosystem. This unique fusion aims to address concerns related to token sustainability, scarcity, and value appreciation.
