Deflationary Mechanisms

Buyback & Burn

The platform sets aside a portion of the transaction fees generated on the platform to buy back RELAY tokens from the open market. These tokens are then burned, reducing the total supply of RELAY tokens in circulation.

By reducing the total supply of RELAY tokens, the platform aims to increase the value of each token over time. This creates a deflationary tokenomics model that rewards users for holding onto their RELAY tokens rather than selling them.

The amount of RELAY tokens bought back and burned during each cycle is proportional to the transaction fees generated on the platform. This means that as the platform grows and generates more transaction fees, the amount of tokens bought back and burned will increase, further reducing the total supply of RELAY tokens in circulation.

The Buyback and Burn mechanism also helps to ensure the long-term sustainability of the RelayChain ecosystem. By reducing the total supply of tokens, the mechanism helps to mitigate the effects of inflation and prevent hyperinflation, which can be detrimental to the value and utility of a cryptocurrency.

Overall, the Buyback and Burn mechanism is a key component of the RelayChain ecosystem, helping to create a sustainable and valuable platform.