Upgraded: UpBots Burn Program
Today, I’d like to tell you about another aspect of improvement we have made to strengthen the token economy of the UpBots platform token UBXT.
We’ve prepared a group of changes designed to reward our loyal supporters and investors for holding UBXT on a long-term basis.
Today’s changes concern the Total Supply of Tokens and more specifically: Burning!
The Upgraded UpBots Burn Program
- Some stuff about pyromania
-There are 3 burn programs
-1 We Burn 15% of Our share of the Platform Profits in Q4 each year until 2024
-2 We begin Burning as soon as performance fees go Live
-3 We continue Burning forever using Stable Coins APR Farming pools
-Burn 1 and 2 are designed to half the supply faster
-Burn 3 is designed to create continual buying and burning as well as UBXT rewards using APY Stable coin Farming pools.
- Performance fees will range between 10.5%–25%
-1 to 5 % of Performance fees will be Burned each time they are taken until 50% of the supply has been burned.
After some meditation on the nature of our tokenomics, a small but persistent voice we are calling our inner pyromaniac seemed to think that only burning on an annual basis wasn’t sufficient!
And while of course we do not agree with pyromania in principle, in this case it was hard to argue the point.
So we decided that not only should we burn 50% of our token supply, but we should have three special types of burns, one of which will run continuously for years.
So first of all the volume of tokens…
UBXT has a Total Supply of 500M tokens. We will aim to burn 50% with two of our planned types of burns, so say farewell to 250,000,000 tokens. The supply at that point will be at 250M tokens.
Once supply hits that mark, then the fun begins with our newly planned yield farming pool burn. More on that later.
Performance Fee Distribution
Performance fees will range between 10.5% to 25%, this range is dependant on the commission percentage the developer decides to set. This calculation is made on the profit a user makes off a trade.
The fees will be deducted from the user’s account and a percentage (in UBXT) will be instantly burnt once perf fees go live. If the user incurred a loss, a virtual credit will be created. Profits earned by the user in the future are paid out in order to satisfy these credits.
When taking perf fees, UpBots will take a fixed rate of 6.5% on the generated profit. Algo devs may set their percentage between a range of 2%-9.25%. Once the dev sets their percentage, it will determine the overall perf fee taken as well as the 50/50 split between the amount sent to the perf fees pool and to be burned.
The break down with perf fees ranging between 10.5%-25%:
-6.5% goes to UpBots
-2%-9.25% goes to the algo developer
-1%-4.625% goes to the perf fees pool
-1%-4.625% are sent to be instantly burned
Let’s look at an example of how this breakdown works. Say you made a total profit of $50,000 and the algo dev has asked for 6.75% of the perf fees. The total perf fees are 20%. All amounts are the UBXT dollar equivalent.
- Algo dev (50,000 x .0675)= $3,375
- UpBots (50,000 x .065)= $3,250
- Perf fees pool (50/50 split w/ burning) = $1,687
- Token burn (50/50 split w/ perf fees pool) = $1,687
Token Burn Program
There will be three unique types of token burning that will aim to reduce the supply of UBXT. Ultimately, the goal of these token burns is to create a scarcity of UBXT tokens, creating an increase in its value.
Burn program 1 — Performance fee burn
As broken down in the previous section, a percentage taken from fees on user-generated profits are sent to be burnt. The percentage taken will range between 10.5%-25%. Once UBXT total supply hits 250,000,000 (50% of total supply burnt) then this program will cease.
Burn program 2 — UpBots net income
A total of 15% of tokens that UpBots receives through performance fees on bots, copy trading, and future subscriptions are to be burned during Q4 of each year. This profit burn is scheduled to begin Q4 2021 and will remain active until Q4 2024 while gradually decreasing annually.
Burn program 3 — Stablecoin yield farming pool
Once the community yield farming pool is implemented, users can begin farming stable coins. These stable coins will then be used to farm the best APR rates. Rewards earned by the pool will be used to buy UBXT from the market and automatically reward yield farms in more UBXT.
Using the pool provides users with a lower risk stable coin farming option that will create buying pressure for UBXT. At the same time, this pool will reduce the UBXT supply through burning and locking UBXT in liquidity on DEXs.
Yield farming pools will provide the following:
- Deposit stable coins into the pool
- Optimized APR farming strategies for stable coins
- 90% of farmed rewards will be used to buy UBXT directly on the market and then redistributed to farmers
- 5% is added to the liquidity pool (UBXT/BUSD)
- 5% is burned
Overall, the token burns are aimed to make UBXT a deflationary currency. The value of UBXT will become concentrated into fewer coins and coupled with increasing demand. Ultimately, the value of UBXT will rise due to scarcity.
Can all UBXT be burned?
Initially, we planned to run the burn programs until half the UBXT supply was burned. Now that we’ve decided to include the stable coin farming pool, we decided to remove the limit placed on the burn amount.
The reason we did this is so that stable coin farming pool can continue even after the first and second programs have ended. So you probably are wondering right now, “aren’t you going to burn through all your UBXT?” Rest assured there is no need to worry, thanks to the magical powers of mathematics.
Considering we’d be burning a percentage of the remaining UBXT, it would be impossible for us to burn through the entire supply.
Our end goal of these burn programs is to start with accelerated burning while the pool generates buying pressure for UBXT by continuing to burn the supply for years to come.
The Math of Supply & Demand
I suspect if you have read this far you probably do not need a lesson in supply and demand economics, and even if you did I am not qualified to give that lecture...so instead let's look at what Investopedia has to say about this:
If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. The same inverse relationship holds for the demand for goods and services.
In other words one could make an argument that in this case token pyromania means token holders be:
Nothing in this article should be construed as investment advice or advice to commit acts of burning stuff.
Should you wish to snag a bag, UBXT is currently available on FTX, KuCoin, Serum DEX, Uniswap, Sushiswap, & PancakeSwap.
Any questions? Come join our Telegram Community or hit us up on Twitter.