WispSwap whitepaper
  • ⏺️Overview
  • πŸŽ‡Launch & Enchated Pools
  • 🀝Business Enquiries
  • products
    • πŸ™ŒGetting Started
    • πŸ”„Token Swap
      • ↕️Concentrated Liquidity Market Maker
      • ⬆️Asymmetric Liquidity Market Maker
      • πŸ’§ Liquidity Pools
        • πŸ“ΌPool Types
        • πŸ’ΉZap
      • πŸ–ΌοΈspNFT
        • πŸ“°Properties
        • ⚑Yield farming
    • ⭐LSDfi
      • Overview
      • Background
        • LSTfi Challenges
        • Solutions with wispSUI
      • WispSUI
        • Risk mitigation
        • Basket composition
        • Basket rebalancing mechanism
      • vdAMM: Validator Decentralization Automated Market Maker
        • Overview
        • Fees structure
      • Integrating with wispSui
        • Developemt progress
        • Contract addresses
        • Minting wispSui
        • Swapping between LSTs
        • Other view functions
      • How to
        • Mint wispSUI with SUI
        • Mint wispSUI with LSTs
        • Swap between LSTs
        • Stake wispSUI
        • Withdraw wispSUI into LSTs
    • πŸ†Wisp-Prediction
      • 🀼Binary Option Prediction Market
      • πŸ–‡οΈCross-chain Prediction Protocol
      • ❔Wisp-Prediction FAQ
    • πŸ”ŒveWISP Plug-ins
      • 🀜Farm Boosting
      • πŸ”…Dividends Pool
      • ✍️Voting
    • πŸŒ‰Cross-Chain Bridge
  • Tokenomics
    • πŸ‘ΎWISP
    • πŸ‘½veWISP
    • πŸ’³Protocol earnings
    • πŸ”₯Deflation Mechanism
  • references
    • 🎯Roadmap
    • πŸ›‘οΈAudit
    • ♾️Official Links
    • πŸ—ƒοΈMedia Kit
    • ❔General FAQ
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On this page
  • Continuous Token Buyback and Burn Program
  • veWISP: WispSwap's Built-In Deflation Mechanism
  1. Tokenomics

Deflation Mechanism

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Last updated 2 years ago

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.

Continuous Token Buyback and Burn Program

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.

veWISP: WispSwap's Built-In Deflation Mechanism

By integrating a deflationary mechanism into veWISP, we aim to create a sustainable token economy that is less susceptible to inflationary pressures.

veWISP redemption

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.

For instance, if a user redeems 1000 veWISP with the minimal 15 days vesting duration, he will obtain a 1:0.5 ratio, and receive 500 WISPin the end.

That means a total of 1000 - 500 = 500 WISP will be burned during the process.

veWISP detachment

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.

πŸ”₯
protocol earnings
converting veWISP to WISP