YU Token Distribution Model and Burn Mechanism
To ensure the sustainability of the token economy, YU Token has implemented an efficient distribution model and burn mechanism to regulate supply and maintain scarcity.
1) Token Distribution Model
YU Token’s distribution model is designed to facilitate natural market formation and encourage user adoption.
Exchange Listings and Liquidity: YU Token will be listed on major CEX (Centralized Exchange) and DEX (Decentralized Exchange) platforms in the early stages to enhance trading activity.
Integration with Payment Systems: YU Token serves as a payment solution for small businesses and consumers, enabling seamless transactions for goods and services.
Community and Partnership Utilization: YU Token will be used in reward programs for specific projects and events to drive community engagement and strategic partnerships.
2) Burn Mechanism
To prevent inflation and maintain scarcity, YU Token employs a regular burn mechanism based on multiple factors:
Transaction Fee-Based Burning: A portion of network transaction fees is automatically burned.
Staking Reward Burning: A percentage of staked tokens is burned periodically to control token supply.
Platform Revenue-Based Burning: The entire amount of fees paid token on the platform is burned.
3) Comparison with Existing Burn Models
Bitcoin (BTC)
Fixed total supply; mining rewards decrease over time through halving events.
Ethereum (ETH)
EIP-1559 introduced transaction fee burning to control inflation.
Binance Coin (BNB)
A portion of exchange revenue is used for periodic token burns.
YU Token adopts a burn model that dynamically adjusts supply in response to increased network usage, inspired by existing burning mechanisms.
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