🔥 Burning Mechanism
Automatic token burns reduce supply and support long-term value appreciation.
How Burns Work
Automatic Monthly Burns
10% of protocol fees burned every month:
Fee collection: All revenue accumulated in burn wallet
Monthly execution: Last day of each month
Public transaction: Fully transparent on-chain
Burn report: Detailed monthly summary
Burn Sources
Trading fees
10% of 1.2% spread
Monthly
Bridge fees
10% of cross-chain fees
Monthly
Liquidation fees
100% of penalties
Immediate
P2P listing fees
50% of order fees
Monthly
Burn Calculation
Example Monthly Burn
Trading Volume: $50M Trading Fees: $600K (1.2% of volume) Burn Amount: $60K (10% of fees) At $0.10/token: 600K tokens burned Annual Impact: ~7.2M tokens burned per year
Volume Impact on Burns
$10M
$120K
1.4M
0.14%
$50M
$600K
7.2M
0.72%
$100M
$1.2M
14.4M
1.44%
$500M
$6M
72M
7.2%
Deflationary Timeline
Phase 1: Launch to Year 1
New tokens: ~160M from rewards
Estimated burns: 5-10M tokens
Net inflation: +150M tokens
Circulating: ~750M tokens
Phase 2: Year 2-3
New tokens: ~100M from rewards
Estimated burns: 15-25M tokens
Net inflation: +75-85M tokens
Circulating: ~850M tokens
Phase 3: Year 3+
New tokens: ~40M from rewards (decreasing)
Estimated burns: 30-50M tokens (increasing)
Net deflation: -10 to +10M tokens
Target: <500M circulating by 2030
Burn Transparency
Real-time Tracking
Live dashboard at burns.0qp.finance:
Burn wallet balance: Current fees awaiting burn
Next burn date: Countdown to monthly burn
Historical burns: All previous burn transactions
Supply metrics: Total vs circulating supply
Monthly Burn Reports
Detailed analysis includes:
Revenue breakdown by source
Burn amount in USD and tokens
Supply impact percentage
Comparison to previous months
Future projections
Verification Methods
Public burn address: 0x000...000 (provably unspendable)
Transaction hashes: All burns publicly viewable
Third-party tracking: CoinGecko, CoinMarketCap integration
Community verification: Open source burn tracking tools
Economic Impact
Supply Scarcity
Reduced supply over time:
Basic economics: Lower supply + same demand = higher price
Accelerating effect: Burns increase with protocol success
Compound benefits: Higher price attracts more users
Long-term value: Deflationary asset premium
Holder Benefits
Burns benefit all token holders:
Proportional value increase: Your % of supply grows
No dilution: Unlike inflationary tokens
Success alignment: Protocol growth = more burns
Passive benefit: No action required from holders
Governance Control
DAO Burn Decisions
Community can vote to:
Adjust burn rate: Increase/decrease from 10%
Add burn sources: New revenue streams
Emergency burns: Special one-time burns
Burn schedule: Change from monthly to different frequency
Historical Precedent
Successful burn programs:
BNB: Quarterly burns, price appreciation
ETH: EIP-1559 burns, supply reduction
CAKE: Regular burns, sustained value
0QP advantage: Higher burn rate + growing revenue
Burn Projections
Conservative Scenario
Assumptions: Steady $25M monthly volume
Year 1: 3.6M tokens burned
Year 3: 10.8M tokens total burned
Year 5: 18M tokens total burned
Supply reduction: ~2% by year 5
Optimistic Scenario
Assumptions: Growing to $200M monthly volume
Year 1: 7.2M tokens burned
Year 3: 43M tokens total burned
Year 5: 108M tokens total burned
Supply reduction: ~11% by year 5
Bull Case Scenario
Assumptions: Major adoption, $1B+ monthly volume
Year 1: 14M tokens burned
Year 3: 150M tokens total burned
Year 5: 500M tokens total burned
Supply reduction: ~50% by year 5
Burn Strategy Benefits
For Traders
Value protection: Burns support token price
Lower volatility: Reduced supply = more stable price
Predictable mechanism: Transparent, automated burns
Success reward: More trading = more burns = higher value
For Stakers
Enhanced rewards: Fewer tokens in circulation
Compound benefits: Staking APY + burn appreciation
Long-term value: Deflationary pressure over time
No dilution: Supply decreases while you earn
For Protocol
User incentive: Burns attract long-term holders
Value proposition: Deflationary tokenomics
Growth alignment: Success directly benefits token holders
Sustainability: Self-reinforcing positive cycle
Monitoring Burns
Key Metrics to Watch
Burn rate consistency: Monthly execution
Volume correlation: Burns increase with usage
Supply impact: % of total supply burned
Price correlation: Burns vs token appreciation
Burn Alerts
Get notified at alert.0qp.finance:
Pre-burn: 24 hours before monthly burn
Burn execution: Real-time transaction alerts
Burn reports: Monthly summary delivered
Milestone alerts: Major burn achievements
Comparison to Competitors
0QP
10%
Automated monthly
Real-time dashboard
BNB
20%
Manual quarterly
Basic reporting
CAKE
Variable
Manual irregular
Limited data
UNI
0%
No burns
N/A
Last updated