Sinbad Burn
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
- 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.
- This encourages interaction within the app while helping to reduce supply in a controlled manner.
2. Manual and Periodic Burns
- 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.
- This ties real project income to token supply reduction.
3. Voluntary Community Burns
- Users can voluntarily burn any amount of their tokens by sending them to a designated "dead wallet" address.
- This feature becomes especially valuable during special campaigns, events, or community-driven initiatives.
4. Gradual Burns During Token Unlocks
- When long-term locked wallets are scheduled for release, a portion of those tokens (e.g., 10% or 20%) will be burned automatically.
- The exact percentage to be burned can be decided by community vote through a governance mechanism.
- Remaining tokens will be distributed across in-game economies, NFT rewards, community funds, or liquidity pools.
5. Dynamic Burns Based on Revenue and Usage
- Burn rates may be adjusted dynamically based on platform activity, ad revenue, or user growth.
- This flexible system allows supply control to align with ecosystem expansion.
6. Transparency and Traceability
- All burn transactions will be fully transparent and traceable on the blockchain.
- A dedicated web dashboard will display real-time information such as total tokens burned, latest burn events, and reasons for each burn.