The Venom Buy & Burn Pool
The Venom Buy & Burn Pool is a powerful mechanism designed to keep both Venom and DRIPX thriving by ensuring price stability and driving continuous burning of tokens. Here’s how it works:
A Large DRIPX Reserve: The pool consists of a large reserve of DRIPX tokens, with its primary goal being to maintain a stable Venom price. Stability in Venom’s price is crucial to keeping the rewards attractive for participants and ensuring the ecosystem functions smoothly.
Initiating Buy and Burns: Every 10 minutes, a miner claim can activate a buy and burn mechanism that purchases Venom and burns it. These buy and burns contribute to reinforcing Venom's price floor over time, enhancing the token's resilience against price fluctuations.
Maintaining Attractive APRs: A stable Venom price ensures that APRs (Annual Percentage Rates) for both miners and liquidity providers (via the Pit) remain attractive. High APRs encourage more participation, which leads to more activity in the ecosystem, increasing the demand for Venom and, in turn, burning more DRIPX.
Driving DRIPX Burns: As more miners are created and liquidity is provided, the buy and burn pool plays a critical role in maintaining a healthy balance. This ongoing burning of DRIPX helps reduce the total supply, which drives up scarcity and strengthens the overall price floor of DRIPX.
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