Our project uses the buyback-and-burn model instead of distributing income directly to token holders. This strategy offers several advantages for the long-term performance and stability of our token.
1. deflationary effect & value appreciation
The targeted buyback and subsequent destruction (burn) of tokens reduces the overall supply. This shortage can have a positive effect on the value of the remaining tokens and increase price stability in the long term.
2. tax advantages for token holders
Direct distributions could be taxable for investors. With buyback-and-burn, however, the token value increases indirectly without token holders having to incur immediate tax obligations.
3. market stability & reduced sell waves
Regular distributions can create selling pressure as investors liquidate their rewards directly. Buyback-and-burn reduces this pressure by creating organic demand and tightening supply.
4. incentives for long-term holding
A continuously diminishing token supply incentivises investors to hold their tokens for the long term, increasing confidence in the project and reducing speculative selling.
5. Price development & attractiveness for new investors
A decreasing overall supply with stable or increasing demand can have a positive effect on the price development. This makes the token more attractive to new investors and strengthens the long-term growth of the ecosystem.
6. flexibility & strategic control
In contrast to fixed distributions, the project can flexibly adjust the buyback and specifically take market conditions into account. This maintains more control over the token economy.
