NFTFY’s Buyback and Burn Program
Greetings, everyone!
Today’s topic is of general interest: NFTFY’s buyback program is about to start.
The buyback is scheduled to launch this November via smart contract. 100% of the fees collected in our dApp will be employed for purchasing $NFTFY from the market and burning it.
Currently, these fees are as follows:
- Collective Purchase: 5%
- All Order Book fraction trades: 0.7%
- Auction: 1% to 20%
The buybacks will happen on different dates and times, so we can prevent any inside trades from happening.
The buyback policy
As a good practice for the community’s common good, buyback policies are becoming a standard for digital markets. They are an effective strategy for ensuring long-term price stability and value growth.
There can be two types of smart contracts for this operation: standard buyback, and buyback-and-burn.
- For a standard buyback smart contract, all the $NFTFY bought is stored inside a Vault and kept from the market. The Vault’s program itself can be managed by the community through governance.
- For a buyback-and-burn smart contract, the $NFTFY is bought and directly destroyed. It is a counter-inflationary act set to go on until a certain percentage of all $NFTFY in the market has been permanently burned.
At first, we will be using a simple buyback-and-burn concept. This is an effective and reliable strategy, and it will be NFTFY’s main approach for the time being.
As we grow, however, our needs also mature and change. We might open up a discussion towards the introduction of a standard buyback method in the future. The migration should happen in sync with our community, as the buyback Vault will be managed through common governance.
These are the announcements for now. We will be back with an update as soon as the buyback operation starts to roll.
