🪙Burn mechanics

Token Mechanics

The MetaHunt token (MHNT) incorporates a burn mechanism to regulate the token supply and create deflationary pressure, to help support token value appreciation over time. This burn mechanism operates by destroying a percentage of tokens involved in every Buy & sell transaction, effectively reducing the circulating supply and promoting long-term holding behavior.

The burn rate starts at 1% and increases gradually on a quarterly basis over a two-year period. This approach ensures that the burn rate remains sustainable and continues to exert deflationary pressure on the token supply as the ecosystem evolves and transaction volumes potentially increase.

Here's a breakdown of the burn rate schedule:

• Year 1, Quarter 1: 1%

• Year 1, Quarter 2: 1.5%

• Year 1, Quarter 3: 2%

• Year 1, Quarter 4: 2.5%

• Year 2, Quarter 1: 3%

• Year 2, Quarter 2: 3.5%

• Year 2, Quarter 3: 4%

• Year 2, Quarter 4: 4.5%

Example:

Suppose a user sells 1,000,000 MHNT tokens during Year 1, Quarter 1. With a 1% burn rate, 10,000 MHNT tokens will be burned, and the user will receive 990,000 MHNT tokens.

By implementing this burn mechanism, MetaHunt aims to strike a balance between staking rewards and token supply reduction, ensuring a healthy and sustainable growth trajectory for the project and its community.