Introducing the Burn Project
An experiment in hyper-deflationary Tokenomics and decentralized autonomous organizations.
It’s time to introduce the latest expansion of the ShibaDoge ecosystem that we have been working on.
If you have participated in DeFi long enough, particularly the token world, you have certainly heard of the term: “When Burn?”. Many memes exist around the “Wen Burn?” philosophy that many token holders lean on to increase the scarcity of the tokens they are holding. It’s no surprise that this is oftentimes the de-facto strategy often sought out by holders and developers to increase the “perceived” value of their holdings.
But what if there was a way for burn seekers to achieve their goals in a way that actually brought about a meaningful impact in the total supply of a token? What if those same holders could govern how and when burns take place? What if those same holders had the power to impact the total supply of tokens from the entirety of the DeFi space? Interesting concept right?
This is the basis for our experimental token known as the Burn Project. The $BURN token is an ERC sub-token that lives within the ShibaDoge ecosystem under the experimental ShibaDoge Labs division.
So how is $BURN the most deflationary token to date? Aside from the primary focus of serving as a burning mechanism for DeFi and the $BURN token itself, we are introducing a radical shift in burn mechanics. We call it TrueBurn™ and what it does is entirely unique from the majority of DeFi tokens out in the market. Not only does TrueBurn™ mechanic initiate a buyback through its reserve pool, but it also completely removes the repurchased tokens from the Blockchain. What does that do? Well, it removes the tokens from the total max supply of the tokens… It’s as if they never existed. This is a radical shift from the current methods incorporated by most DeFi tokens. Just imagine what could happen if 30% of the total supply has been eliminated from the blockchain…
Beyond the token itself (more on that later), the primary utility of the token will be to serve as a governance token, empowering holders to elect, govern, and determine the manner in which the funds accrued in the Burn Treasury wallet are distributed. The Burn Treasury is a DAO controlled wallet that deploys funds across the ERC token ecosystem on a cyclical basis. Each month (this period may change), token holders will receive 1 vote per token that they own, giving them the opportunity to cast their vote on the project of their choice. Unlike a winner takes all scenario, the treasury funds will be deployed proportionately in accordance with the final tally of votes towards each project.
Now you might be asking yourself, what does this have to do with ShibaDoge or how does it benefit the holders? That’s a great question, as well as an important one. Ingrained in the Tokenomics of the Burn Token is a tax that is directly attributed to a buyback and burn on the mother token ShibaDoge. A 2% permanent fee on all transactions (buys/sells) accumulate and are used to buy ShibaDoge tokens on the open market (creating reflections to holders) and the purchased tokens are directly sent to the designated burn wallet. These burns can take place at any time, both in a manual and an automated fashion, and the intention is to deploy the accumulated funds at strategic times. A hypothetical scenario may look something like this:
How it works
- We are starting with a max supply of 1 Trillion Tokens.
- 80% of the total supply will be burned on launch.
- 7% is allocated to the Buyback & Burn wallet (2% of the pool is allocated to ShibaDoge | $SHIBDOGE tokens). Burn Tokens bought back are going to be completely removed from the blockchain and will never return — TrueBurn™
- 3% is allocated to the Liquidity pool.
- 3% is allocated to the Development wallet to further the development of the project.
- 2% is allocated to the BurnDAO Treasury.
- .15% Max Wallet Size
TrueBurn™ and the reduction of token supply
When the tokens are burned by the contract on the $BURN token, the tokens will also be removed from the token supply. These tokens are removed from the blockchain forever. Unlike the traditional method of transferring burned tokens to a dead wallet, such as address 0, TrueBurn will burn the tokens by removing them completely from the total supply. Essentially, those tokens will no longer exist and it will be like those tokens have never existed. You can imagine a scenario where the total supply is infinitely smaller than the initial starting supply.
To understand how this system will work, it’s important to first understand what a DAO is. A DAO is a decentralized autonomous organization, allowing the members (validated by ownership of a token or NFT) to participate in the governance of the organization. A DAO can serve any purpose, and it is best to think of it as a company and the DAO members represent the shareholders/board of directors. Not to be confused with a formal company, rather, a DAO is useful in any scenario where decisions are best made by the stakeholders. DAO smart contracts are written in such a way that the contract must enforce the decisions made by the holders voting. This virtually eliminates human error from the equation. The Burn token will act as a governance token that will allow holders to vote on how the burn treasury wallet should be distributed. Token holders will have the ability to vote their owned tokens in a DAO that will allow the holders to determine the buyback and burns that will be represented in every project. In addition, DAO users holding a minimum number of tokens will have the ability to vote and submit proposals on the tokens that will be subject to vote each month. Each burn token represents a vote in the DAO.
The BurnCard NFT is an exclusive non-fungible token in which the primary utility is to be burned at the discretion of the NFT owner. Once burned, the NFT is incinerated and removed from the blockchain, revealing a set number of BURN tokens that are automatically deposited into the same wallet that held your NFT. There are a total of 69 BurnCards that will be made available to the public. A single BurnCard NFT will be listed for 5 ETH, each containing a total of 10% of the .15% max wallet size.
So what do we hope to achieve and when do we start?
The $BURN token is scheduled to launch on 4/20/2022. Our goal is to expand the ecosystem of ShibaDoge through an experimental protocol in DeFi that not only directly impacts the mother token and community ShibaDoge, but also has a lasting impact on the entirety of the DeFi space in a manner that’s true to the essence of decentralization (and crypto meme culture of course).
Our hope is that we can continue our mission of unity across the DeFi space. ShibaDoge and the community was never intended to be an adversarial community in opposition of other projects. Rather, the intention behind the guiding philosophy of our community has always been about unity across the DeFi space — as evidenced by our founding vision of unifying the Shiba and Doge communities.
There’s no telling what this token will do or where it will go. It’s no surprise that in today’s environment and economic climate, inflation of fiat currency is running rampant. Perhaps there has never been a time better than now to introduce the world’s most deflationary token… All that we can be certain of is that it is an interesting experiment and one step closer to achieving our 888 year vision.
What is ShibaDoge labs? ShibaDoge Labs was created to function as a DeFi launchpad, which includes all aspects of the DeFi space. The guiding principles behind the ShibaDoge labs remains the same as our mothership — Unity. We see our mission of unity as something that extends beyond the ShibaDoge ecosystem and is an ambitious pursuit for the DeFi space.
*We appreciate your interest in the BURN project. We are an experiment in community togetherness. Everyone on the admin team is a volunteer and a supporter of our vision. We have no financial incentive outside of what we are receiving as a small airdrop of 1% of the total supply for each of our 5 volunteers.