🔥┃Deflationary mechanisms

In addition to the hardcap set on IGN, we also implemented some deflationary mechanisms in order to reduce the total supply.

Buy back & burn

A share of the protocol earnings is dedicated to buy back & burn IGN, in order to apply a continuous buying pressure on it.

xIGN redeems

When converting xIGN to IGN, if the vesting duration isn't the maximum, the xIGN:IGN ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the IGN excess will automatically be burned.

For instance, if a user redeems 1000 xIGN with the minimal 14 days vesting duration, he will obtain a 1:0.5 ratio, and receive 500 IGN in the end.

That means a total of 1000 - 500 = 500 IGN will be burned during the process.

xIGN deallocations

When deallocating xIGN from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be of 1%.

The corresponding IGN amount will automatically be burned.