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How the $DONNIE Burn Mechanism Keeps the Supply Deflationary

At DONNIE, we’re committed to ensuring that our ecosystem remains sustainable and rewarding for the long-term. A key aspect of achieving this goal is our burn mechanism, which effectively reduces the total supply of $DONNIE tokens over time. 

This makes each token more valuable, benefiting holders and the broader ecosystem.

Here's how our burn mechanism works:

75% Burn: VIP Access Fees

75% of all received VIP membership fees will be burned to reduce the total supply. Each membership grants lifetime access to our exclusive VIP staking pools, which are reserved only for whitelisted VIP members. This staking pool is flexible and has a total pool size of 150 million DONNIE, offering 20% APR for an entire year.  As a VIP, you have the freedom to withdraw your funds at any time, putting you in complete control of your assets. Regular members are limited to a fixed, less flexible staking option, meaning their funds are tied up without the same level of control. VIP members are eligible for exclusive monthly airdrops, ensuring they receive additional tokens and rewards. This is a benefit unavailable to regular members who miss out on these valuable bonuses.

50% Burn: Early Withdrawal Fees from Staking Pools

For those who decide to withdraw from staking pools early, 50% of the withdrawal fee is burned, further contributing to the deflationary mechanism. This ensures that early withdrawals not only affect your rewards but also help burn more tokens from circulation.

100% Burn: Unclaimed Rewards

Any unclaimed rewards from staking pools after the expiration of the claiming period are automatically burned. This helps maintain scarcity and ensures that rewards are claimed promptly, benefiting those who actively participate.

Buy-Back and Burn

A portion of the platform’s earnings is used to buy back and burn $DONNIE tokens. Specifically, 10% of the funds generated from whitelabel trading services are dedicated to this process. This ongoing buy-back and burn strategy adds to the deflationary pressure, gradually reducing the supply of $DONNIE tokens over time.

Ongoing Monthly Burn and Sustainability

Every interaction within the DONNIE ecosystem fuels the burn process, contributing to a sustained reduction in total token supply. We’re starting with an ambitious 250,000 worth of $DONNIE burned each week for the first month, ensuring a consistent deflationary effect. The burn rate is recalculated on a monthly basis.

However, to ensure that the burn process remains manageable and sustainable, we have implemented a burning cap. The total amount burned each year is limited to 3% of the total supply. 

For Year 1, this means a maximum of 30 million $DONNIE tokens will be burned, ensuring a balance between token scarcity and long-term growth.

With this burn mechanism, $DONNIE becomes more than just a token — it’s a deflationary asset that grows in value over time as its supply shrinks. This ensures that $DONNIE holders benefit from both scarcity and rewards, making it a strong, sustainable currency within our ecosystem. The more you interact, the more you contribute to making $DONNIE even more valuable.