Sinbad Burn

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Sinbad Token Burn Mechanism Draft

Sinbad Network has developed a comprehensive and multi-layered token burn mechanism to sustainably manage the token supply and increase its long-term value. This model is designed as a flexible and fair system that incorporates both team control and community participation.

1. In-App and In-Game Burns

  1. When users spend tokens for daily tasks, mini-games, or special actions within the app, a percentage of those tokens are permanently removed (burned) from circulation.
  2. This encourages interaction within the app while helping to reduce supply in a controlled manner.

2. Manual and Periodic Burns

  1. The core team will use a portion of generated revenue to buy back tokens from the market at regular intervals and send them to a burn address.
  2. This ties real project income to token supply reduction.

3. Voluntary Community Burns

  1. Users can voluntarily burn any amount of their tokens by sending them to a designated "dead wallet" address.
  2. This feature becomes especially valuable during special campaigns, events, or community-driven initiatives.

4. Gradual Burns During Token Unlocks

  1. When long-term locked wallets are scheduled for release, a portion of those tokens (e.g., 10% or 20%) will be burned automatically.
  2. The exact percentage to be burned can be decided by community vote through a governance mechanism.
  3. Remaining tokens will be distributed across in-game economies, NFT rewards, community funds, or liquidity pools.

5. Dynamic Burns Based on Revenue and Usage

  1. Burn rates may be adjusted dynamically based on platform activity, ad revenue, or user growth.
  2. This flexible system allows supply control to align with ecosystem expansion.

6. Transparency and Traceability

  1. All burn transactions will be fully transparent and traceable on the blockchain.
  2. A dedicated web dashboard will display real-time information such as total tokens burned, latest burn events, and reasons for each burn.