🔥Burning mechanisms

Scarcity is a key driving factor to increase demand in a token.

GOLDAO buyback and burn

33% of the rewards from the Gold DAO ICP neurons are going to a buyback and burn wallet. This means that those ICP are used to buy GOLDAO on exchanges and subsequently burn them to reduce the total supply of GOLDAO. A canister (atslz-hiaaa-aaaam-acq6q-cai) is taking care of automatically buying back and burning GOLDAO at random intervals during the day.

In the current configuration, this canister uses 33% of its ICP balance per week to buy back GOLDAO on ICPSwap during six events each day and subsequently burn them. So, every buyback event uses 7 x 6 x 3 -> 1/126th of the buyback and burn canister's ICP balance. The intention of this setup is to make sure there are always ICP in the canister's balance to perform buyback events while keeping the impact on the price due to slippage low. Throughout the lifetime of Gold DAO, this burning rate averaged to about 5-10 million GOLDAO annually. The burning events can be seen on its GOLDAO balance.