ICS Burning Unlimitedly
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To make up for the shortcomings of centralized burn, the ICPSwap team has innovated and developed an automated repurchase mechanism that enables ICS to be totally decentralized and spontaneously burned under the market forces and realizes genuine openness, autonomy, publicity, and transparency.
There are two burn forms in the burn mechanism of ICS tokens. The first one is to directly burn the handling fee engendered by the modules such as Mint token and (the creation of) Pools. The second one is to extract 20% of the transaction fee from the trading, put it into the Repurchase-and-Burn Pool, and then automatically burn it under the smart contract.
The ICPSwap system charges the transaction fee from the 1st day to the last day every month.
The user deposits the ICS tokens into the Repurchase-and-Burn Pool on the 1st day of the following month.
At the end of the 24th hour on the 1st day of the next month, the ICS tokens stored in the Repurchase-and-Burn Pool will be automatically burned. And the user will exchange them for the non-ICS tokens.
Such a way of participation in the burn of the ICS tokens in exchange for non-ICS ones can significantly stimulate the users’ enthusiasm, break the limitations of the existing man-controlled burn model, and create a genuinely open and automatic burn mechanism without human control, contributing to the future DeFi construction. As more and more ICS tokens flow from the secondary market into the Repurchase-and-Burn Pool, the amount of the ICS tokens in circulation will gradually decline, thereby empowering the long-term value growth of ICS, boosting the prosperity and development of the ICS ecosystem, and maximizing the benefits of the users in the ICS ecosystem.
