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Deflationary Mechanisms

Flack Exchange: Strategic Deflationary Mechanisms

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🔥 Reducing Total Supply: A Dual Approach

Flack Exchange integrates carefully thought-out deflationary mechanisms to regulate the total supply of FLACK, enhancing its value and stability.

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1️⃣ Buy Back & Burn Initiative

  • 📈 Continuous Market Pressure: A designated portion of earnings is used to buy back and burn FLACK, maintaining consistent buying pressure on the token.

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2️⃣ xFLACK Redeems

  • Vesting Impact on Ratio:

    • ⏳ Vesting Variability: If the vesting duration is less than the maximum, the xFLACK:FLACK ratio drops below 1:1, to a minimum of 1:0.5.

    • 🔥 Burn Mechanism: Excess FLACK resulting from a lower conversion ratio is automatically burned.

    • Example: Redeeming 1000 xFLACK with a 15-day vesting period yields 500 FLACK, leading to 500 FLACK being burned.

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3️⃣ xFLACK Deallocations

  • Taxation Upon Withdrawal:

    • 💸 Deallocation Tax: When xFLACK is withdrawn from a Plugin, a deallocation tax, typically around 0.5%, is applied.

    • 🔥 Automatic Burn: The corresponding FLACK amount from this tax is immediately burned.

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