Deflation Mechanism
Last updated
Last updated
Inflation is a phenomenon that occurs when the supply of a token exceeds its demand, leading to a decrease in its value over time. To counteract inflation and promote a healthier token economy, WispSwap team has implemented deflationary mechanisms directly into the platform. This can potentially lead to increased demand for our token, as investors and users may see it as a store of value with limited supply, which could result in price appreciation over time.
A portion of the , which includes transaction fees from WispSwap DEX, fees from Wisp-Prediction, and revenues from future WispSwap products, is allocated towards buying back and burning WISP tokens. This creates a continuous buying pressure on the token.
By integrating a deflationary mechanism into veWISP, we aim to create a sustainable token economy that is less susceptible to inflationary pressures.
When , if the vesting duration isn't the maximum, the veWISP:WISP ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the WISP excess will automatically be burned.
When detaching veWISP from a Plug-in, a detachment tax is applied. It can vary between contracts, but will usually be of 0.5%.
The equivalent amount of WISP will be automatically burned as a result.