Burn Vault

The primary objective of the burn vault design is to provide investors with a way to cash out their holdings without impacting the market price. Burn Vault receives revenue through two services: taxing and unlocking fees. Taxing: After every transaction, 1% of the transaction amount is deducted as tax and accumulated in a separate contract as stablecoins called Burn Vault.

The protocol does the following two steps once a transaction amount is deposited.

1. Convert the received amount into a stable asset through an exchange

2. Lock the converted stable asset in the Burn Vault

Unlock Service: The protocol fosters stability by capping daily sales at 1%, maintaining equilibrium. To provide users with flexibility, a unique feature enables swapping up to 50% on decentralized exchanges. The twist? Half of this swapped amount is directed into our Burn Vault, a reservoir growing daily with transaction volumes.

When users decide to cash out, they send their tokens to the Burn Vault address. In return, the Vault credits their wallets proportionally, aligning with the protocol's price. This innovative mechanism ensures liquidity while reinforcing the strength of the Burn Vault, a core element of our dynamic ecosystem.

VAULT PRICING MODEL:

The Burn Vault Swap price varies every minute and depends on the following two variables

a) Total ME Supply (A)

b) Total USD Value locked in Vault (B)

The protocol sets a new price dynamically in the Vault using the following formula.

Vault Price Per Asset = (Total USD Value locked in Vault)/ (Total ME Supply)

For example,

The total circulating supply is 100,000

The total Value Locked is 2000 USD

Then the Vault Price set by the protocol will be 0.02 $ (2000 / 100,000)

When a user sends 100 token assets to burn Vault, he will get (100 x 0.02) 2 USD in return

Notably, the protocol restricts a holder from swapping more than 0.01% of the total circulating supply using the Burn Vault within 30 days.

This strategic limitation ensures balanced utilization and prevents potential misuse of the Burn Vault feature. Moreover, tokens swapped via the Burn Vault are permanently removed from circulation, fostering scarcity and contributing to sustained increases in the token's price, ultimately enhancing the overall investment value.