🔥 Announcing A Revolutionary Token Burn Mechanism: A Simple Guide!

4 min readMar 22, 2024

We’re excited to share an innovative update to our tokenomics that’s set to enhance the value and utility of our native token $AITECH, used to access the services in the GPU and AI Marketplace set to launch MVP in June 2024. Understanding that the concepts of token burns and staking rewards might seem complex, we’ve broken down this announcement into straightforward, digestible parts. Here’s everything you need to know about our new unlimited token burn strategy, designed with long-term growth and sustainability in mind.

Our Unique Approach to Tokenomics

At the heart of our marketplace is our native token $AITECH, the currency for purchasing GPU power and AI solutions & services. To ensure its increasing value and scarcity, we’re implementing a dynamic token burn mechanism coupled with replenishing our staking pools. Here’s how it works:

Token Burn Mechanism Explained

Initial Setup:

A portion of the profits from every transaction on our marketplaces will be dedicated to our token economy. Specifically, we’ll allocate a certain percentage (X%) of the profits.

Dynamic Allocation:

Half of this percentage (0.5X%) will be burned — permanently removed from circulation.
The remaining half (0.5X%) will replenish our staking pool.

Increasing Burn Rate Over Time:

As time progresses, we will gradually adjust the allocation:

Increasing the burn rate (approaching X% and continuing at this rate

perpetually once reached)

Decreasing the amount of tokens replenishing the staking pools.

Why This Matters

This method ensures a continuously decreasing supply of tokens, making them scarcer and potentially more valuable over time. Simultaneously, it rewards early investors while the ecosystem grows but shifts focus towards enhancing token value in the long term.

A Sample Scenario

Let’s simplify with numbers for clarity. Imagine we decide to use 20% of our profits from transactions for this mechanism. Here’s what happens:

Initial Allocation:

10% of transaction profits are burned.
10% of transaction profits go towards replenishing staking pools.

Future Adjustment:

For every 20% of the total token supply burnt, we increase the burn rate by 2%
The burn rate gradually increases, for example, to 12%, 14%, eventually reaching and continuing perpetually at the full 20%.
Correspondingly, amount of $AITECH tokens used to replenish staking pools decrease to 8%, 6%, eventually dropping to 0%.

Disclaimer: The above figures are illustrative and the purpose is to showcase how our burn mechanism works and to compare it to a constant burn mechanism. Our marketing and sales team is currently working on the pricing of the offerings on our platform. The exact burn rate will be finalized after the official pricing structure is finalized and will be announced at the time of our platform releases.

Implications of Growing Adoption

As our AI and GPU marketplaces gain traction, we expect transaction volumes and profits to increase. This growth, paired with our token burn mechanism, implies:

Reduced Token Supply: With more transactions, more tokens are burned, continually reducing the total supply.
Increased Demand: As our marketplaces become more popular, demand for our token to access services will grow.
Potential for Value Increase: A decrease in supply, alongside increasing demand and marketplace adoption, sets the stage for the token’s value appreciation over time.

What This Means for investors:

For Token Holders: This strategy is designed to reward your early support and belief in our ecosystem. As the token becomes scarcer and demand grows, the potential for your holdings to appreciate in value increases.
For Staking Participants: While staking rewards will decrease over time, the increasing token value and early rewards aim to provide significant value.

Looking Ahead:

This token burn and staking reward adjustment mechanism is a testament to our commitment to sustainable growth, value creation, and community rewards. We believe it sets a solid foundation for our ecosystem’s future and look forward to seeing how it enhances our marketplaces and benefits all stakeholders.

Don’t have AITECH? Buy Now: BUY $AITECH:

Got AITECH? Stake Now: stake.aitech.io

🔗 Official Links

Check out Solidus Ai Tech digital presence.

Launchpad : www.aitechpad.io
Website: www.aitech.io
Twitter : https://www.twitter.com/AITECHio
Discord : https://www.discord.gg/aitechio