Burning is a widely recognizes economic primitive used for supply-side management of a digital asset and one of the core components of $CGPT’s tokenomic model.
Acting as a key driver of market equilibrium and a countervailing force against unit devaluation, consumption-based burning has been interwoven into the $CGPT token model.
Every interaction that is denominated and acquired in $CGPT reduces the circulating supply by sending a portion of proceeds to a void, public, non-spendable address for which the private keys do not exist.
In the case of the BSC — Binance Smart Chain (and other EVM networks), that is address: 0x0000000000000000000000000000000000000000
Through constant pressure being applied in proportion to the demand of the underlying platform’s applications (ChainGPT’s suite of products), a higher degree of fair value can be established by natural market forces.
The Six Touchpoints of $CGPT’s Fee Burn Mechanism
There have been six different vectors tied to the $CGPT applications that induce the burning functions:
Prompt Marketplace: 100% burn
The prompt marketplace is peer-to-peer, any/all fees paid for transactions are directly removed from the circulating supply.
Chatbot & tools: 50% burn
Half of all fees attributable to the Chatbot and any adjacent AI tools are removed from the circulating supply. The remaining half of the fees is accrued to the ChainGPT Foundation and DAO Treasury.
NFT Gen: 50% burn
Half of all fees attributable to the AI NFT Generator are removed from the circulating supply. The remaining half of the fees accrue to the ChainGPT Foundation and DAO Treasury.
Pad: 1% burn (from raise amount)
Whenever a project hosts their IDO on the ChainGPT Pad, 1% of the amount it raises will be used to buy back $CGPT tokens from the open markets and burn them.
Whitelabel Solutions: 10% buy-back & burn
Every time a B2B transaction takes place where another project or company decides to purchase any whitelabel solutions / software / software licenses from ChainGPT, 10% of the total transaction cost will be used to buy back $CGPT tokens from the open markets and burn them.
ChainGPT NFT Collection Sales: 20% buy-back & burn
Any time ChainGPT will be selling their own NFTs, 20% of the proceeds will be used to buy back $CGPT tokens from the open markets and burn them.
Any $CGPT tokens are accrued back to ChainGPT or the DAO will be distributed proportionately between the two entities and leveraged for purposes of development, marketing, and a slew of ancillary community and brand-building initiatives to propel ChainGPT.
To view all previous $CGPT burn events on BSC’s on-chain explorer, use the link provided below:
General Resources:
🌐 Website | 📧 Contact | 🤖 Brand | 📃 Whitepaper
Connect with us and Join the community:
Twitter | Telegram | Discord | Instagram | LinkedIn | Youtube
source: https://www.chaingpt.org/blog/cgpt-burning-mechanism