Deflationary Mechanism
Last updated
Last updated
ONI Protocol incorporates a deflationary mechanism as a core element of its economic framework. This strategy primarily aims to bolster the value and stability of the $ONI token over time by systematically decreasing its circulating supply.
Burning of $ONI Tokens
Token Burn Mechanism: At the heart of our deflationary approach is the regular burning of $ONI tokens. This process entails the permanent removal of a portion of tokens from circulation, thereby diminishing the overall supply.
Sources for Token Burn: The token burn mechanism is activated through various activities within the ONI Protocol ecosystem:
Service Fees: 50% of the $ONI tokens collected as service fees from GPU renting service access are subjected to burning.
Additional Buyback & Burn Events: ONI Protocol may periodically conduct further token buyback and burn events, utilizing funds from the Treasury as part of our economic strategy, thus enhancing the deflationary impact.
Impact on Token Value and Ecosystem
Enhanced Token Scarcity: The reduction in the total supply of $ONI tokens fosters scarcity, which can positively affect the token's value, particularly if demand remains steady or increases.
Long-Term Economic Stability: By consistently removing a portion of tokens from circulation, we aim to cultivate a more stable and sustainable economic environment for ONI Protocol. This stability benefits both long-term investors and everyday users of the platform.
Alignment with User Interests: The deflationary mechanism aligns with the interests of $ONI holders, as it has the potential to increase the value of their investments and incentivizes long-term engagement and participation in the ecosystem.
