Token Burning

To ensure the long-term viability and value of the VLT token, Voltius adopts a sustainable approach to tokenomics with a diminishing burn rate model. This method balances the deflationary impact with the preservation of the token supply, aligning with our growth trajectory.

1. Burn Rate Model and Mechanism

Our model will initiate with a 5% burn rate, applied to the notional value (USD) of each transaction on the Voltius platform. This rate will systematically decrease as we hit predefined milestones related to the total supply burned. Such a structure will ensure a robust yet sustainable deflationary effect on the token.

2. Milestones and Rate Adjustments

The total supply of VLT tokens will be monitored, with milestones set at every 10% increment of the supply burned, up to 50%. At each milestone, the burn rate will decrease by 0.5%. For instance, after 10% of the total supply is burned, the burn rate will reduce to 4.5%, and so on.

3. Burn Rate Formula

The burn rate (BR) at any point is calculated as:

BR = InitialBR - (Decrement * TotalBurnedMilestoneInterval)

This formula ensures a gradual reduction in the burn rate, maintaining the token's market dynamics and longevity.

This diminishing burn rate model is a cornerstone of Voltius' tokenomics, reflecting our commitment to a responsible and strategic approach to token utility and market stability. It underscores our dedication to creating a robust economic model that supports the growth and adoption of the Voltius platform.