📉 | Deflationary Features
Last updated
Last updated
As already explained, $SWORD has a theoretical maximum supply of 10,000,000 tokens.
Our deflationary mechanisms aim to reduce the total supply as much as possible. There are 2 main ways in which the protocol will burn $SWORD:
A share (12%) of the Protocol Earnings will be used to buy back and burn $SWORD, as explained in:
When a user decided to redeem $SWORD by staking $xSWORD, there is a redeem ratio based on the staking period. If a user decides to stake his $xSWORD for less than 90 days, he will receive a lower rate than 1:1. Example: if a user stakes for 15 days, will receive $SWORD with an 0.5:1 rate. All the excess SWORD will be automatically burned, as explained in:
