Fundamental Principle: Token burning is an essential aspect of $O Coin tokenomics and represents the fundamental principle of the $O Coin.
The Function of Token Burning in the O.XYZ Ecosystem
The products within the O.XYZ Ecosystem are engineered with features that aim to decrease the overall supply of $O. This strategy ensures a stable equilibrium between supply and demand, mitigating the impact of new circulating supply from infrastructure initiatives and the agents program.
Methods of Token Burning
There are two primary methods of token burning that we have implemented
1.Real-Time Burn:
Real-time burn mechanisms ensure the immediate removal of tokens from circulation as specific events occur, typically unfolding in two distinct ways:
Gas Fees on Each Transaction: A definitive 100% of the gas fees collected from each transaction is burned, effectively reducing the total supply of tokens over time.
Ecosystem Product Usage Payments:
A full 100% of O.XYZ ecosystem products usage fees are burned, including payments for:
O Routing Intelligence manages contracts established on the O.CHAIN and incurs charges per inference, supporting each inference request to the O Intelligence, including user prompts during interactions
O.OCEAN or users submitting content to the O.AGENTS or other ecosystem projects/ and agents built on the O CHAIN.
Each inference request to the O Intelligence APIs necessitates computation, which is adeptly managed at a more profound backend level. This ensures that for O Intelligence to generate an inference, it incurs costs at O.ATLAS datacenters for the compute time utilized on GPUs and CS-3 Cerebras Atlas chips.
Ecosystem Product Usage Instant PaymentAnnual Forecasted Value of $25 Million in Burn Rate
O.ATLAS Datacenters compute time usage (Billed Per Second) Annual Annual Forecasted Value of $50 Million in Burn Rate
This real-time auto-burn mechanism ensures that 100% of revenue from products and gas fees is completely burned. The ratio is subject to adjustment through community governance, facilitated via the O.DAO.
2. Quarterly Auto-Burn
Quarterly auto-burn mechanisms strategically burns tokens from circulation based on predetermined criteria. This efficient approach is exemplified by leading entities such as O.OCEAN and O.CAPITAL, which consistently generate substantial recurring revenue through Enterprise and Software-as-a-Service (SaaS) models. Here is an explanation of the process:
Revenue Conversion to Tokens: The revenue from these offerings is converted into $O Coin by buying it from the open market, Then, 100% of these tokens are directed to a quarterly auto-burn wallet and are effectively burned.
O.OCEAN financial projectionsAnnual Annual Forecasted Value of $80 Million in Burn Rate
O.CAPITAL financial projectionsAnnual Annual Forecasted Value of $40 Million in Burn Rate