🔥┃Deflationary Mechanisms

In addition to the hard cap set on MONO, we also implemented some deflationary mechanisms in order to reduce the total supply.

Buyback & Burn

A share of the protocol earnings is dedicated to buy back & burn MONO, in order to apply continuous buying pressure on it.

xMONO Redeems

When converting xMONO to MONO, if the vesting duration isn't the maximum, the xMONO:MONO ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the v excess will automatically be burned.

For instance, if a user redeems 1000 xMONO with the minimal 15-day vesting duration, he will obtain a 1:0.5 ratio, and receive 500 MONO in the end.

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

xMONO deallocations

When deallocating xMONO from an Extra, a deallocation tax is applied. It can vary between contracts, but will usually be of 0.5%.

The corresponding MONO amount will automatically be burned.