🔥The Burning Mechanism
The SALTZ Flame: Our Unique Burning Mechanism
Last updated
The SALTZ Flame: Our Unique Burning Mechanism
Last updated
Picture this: with every SALTZ transaction, a phoenix rises, consuming a fragment of our coin supply and giving birth to heightened value. Welcome to our innovative Burning Mechanism.
Here's How It Ignites: Each Buy/Sell transaction attracts a 10% tax. Of this:
36.5% vanishes into the flames, reducing our coin supply.
11.5% waters our Sprinkler reward pool.
31% fuels the staking reward vault.
21% brightens our Project Marketing efforts.
The beauty? Every spark (transaction) ensures a constant reduction in SALTZ supply, naturally elevating its value over time. This ever-burning flame assures sustainability and a rising floor price for every SALTZ holder.
Experience the warmth of SALTZ's blazing potential. 🔥
Let us understand the Burning Mechanism and how it affects the token's value with the help of an example:
Initial Token Supply: 20,000,000 SALTZ
Initial Token Value: $1.00 per SALTZ
Transaction: Purchase of 150,000 SALTZ
In this scenario, a user decides to purchase 150,000 SALTZ at the rate of $1.00 per SALTZ. The total cost of the transaction would be $150,000. With a 10% transaction tax, the amount taxed would be 15,000 SALTZ.
Here's how the tax and burning mechanism work:
Transaction Tax: 150,000 SALTZ * 10% = 15,000 SALTZ
Amount Burned (36.5% of the tax): 15,000 SALTZ * 36.5% = 5,475 SALTZ
Important Note:
Please note that the burning percentage shown in our example assumes full eligibility for referral rewards across all levels. Actual burning rates may vary if a user's transactions do not qualify for referral rewards at every stage. Users should acquaint themselves with the specific terms of the SALTZ referral program, as this can significantly influence the effective burning percentage and the resultant token value.
Now, let's calculate the new supply after burning the taxed SALTZ:
New Token Supply: 20,000,000 SALTZ - 5,475 SALTZ = 19,994,525 SALTZ
After the purchase and the burn, the remaining supply has decreased, which could potentially affect the token's value if all other factors remain constant. The new token value, with the decreased supply, could be estimated as follows:
New Total Circulating Supply: 19,994,525 SALTZ
Assuming Market Cap remains the same ($20,000,000): Market Capitalization / New Token Supply = New Token Value $20,000,000 / 19,994,525 = $1.000273 per SALTZ
So, after the transaction and burn, the new estimated value of each SALTZ would be approximately $1.000273. This shows a slight increase in the per-token value due to the burn. While the change may seem minimal, over time and through many transactions, the compounding effect of burns can lead to a significant increase in the value per token.
Now, let us see how whale tax is more impactful in increasing the token value.
Initial Token Supply: 20,000,000 SALTZ
Initial Token Value: $1.00 per SALTZ
Transaction: Purchase of 1,000,000 SALTZ
In this adjusted scenario, a user decides to purchase 1,000,000 SALTZ at the rate of $1.00 per SALTZ. The total cost of the transaction before taxes would be $1,000,000. Because the purchase is 5% of the total token supply, a whale tax is triggered.
Here’s how the tax and burning mechanism would work:
Base Tax: 1,000,000 SALTZ * 10% = 100,000 SALTZ
Whale Tax: 1,000,000 SALTZ * 25% = 250,000 SALTZ
Total Tax: Base Tax + Whale Tax = 100,000 SALTZ + 250,000 SALTZ = 350,000 SALTZ
Amount Burned (36.5% of the total tax):
Total Tax * 36.5% = 350,000 SALTZ * 36.5% = 127,750 SALTZ
New Token Supply after burning the taxed SALTZ:
20,000,000 SALTZ - 127,750 SALTZ = 19,872,250 SALTZ
.
Calculating the new value of SALTZ post-transaction: Assuming the market capitalization remains at $20,000,000, the new value per SALTZ can be determined by dividing the market cap by the new, reduced supply.
New Token Value:
Market Capitalization / New Token Supply = New Token Value
$20,000,000 / 19,872,250 SALTZ ≈ $1.0064 per SALTZ
With the burning of tokens post-transaction, the supply has decreased to 19,872,250 SALTZ. This reduction in supply, with market cap held constant, would nominally increase the token's value to approximately $1.0064 per SALTZ, signifying a potential rise in value due to the deflationary burning mechanism.
The amount of change in both price and quantity will depend on the number of transactions happening on the network.
