At its heart, Y5 Wealth Token is a hyper deflationary project. This means that we have a large circulating supply, decreasing over time.
The process we use to facilitate this decrease is called BuyBack and Burn. Y5 Wealth token is only six months old at the time of writing, but to date, we have burned almost 15% of our total supply, with the rest to be burned in the coming years.
Wen BuyBack and Burn?
The profits from the revenue-generating utilities are used for BuyBack and Burn (BBB). The higher the profits, the bigger the BBB. The way that Y5 has chosen to go about initiating a burn is straightforward. There will be between 1 and 7 burns in any seven days, totalling that seven days period of total profit after costs. We may see seven smaller burns, or one huge burn, or more likely, something in between that.
How does the Buy Back and Burn work?
The Buyback: A buyback is simply the Y5 Team buying Y5 Tokens with profits from utilities. With Y5 Wealth Token being paying passive income in BUSD, the BuyBack & Burn has more than the singular effect of decreasing the circulating supply. Every time Y5 makes a Buyback, the holders of Y5WT benefit from the purchase, with 13% of that tax going to BUSD rewards. The Burn: Y5WT also has a transfer tax for transferring tokens from wallet to wallet. This tax is implemented when transferring the Y5WT bought in the BuyBack to the Dead Wallet. So when the burn transaction takes place, that 13% tax is applied again. This means that holders of Y5WT earn BUSD rewards twice on every Buyback and Burn, which is significant, and will be especially so when we have a host of utilities all producing profit, all of which will be burned in Y5WT.
The last 30 days of burns (at the time of writing - July 2022):
To get a feel for the kind of numbers we’re talking about, let’s take a look at some statistics to put all of this in perspective. In the last month, 3,232,069,553,006 tokens have been burned. This is no inconsequential amount. At the current price, that's $26775. If we continue on this trajectory for the next 12 months, we’ll burn almost 39T tokens. Of course, we don’t intend to continue on this trajectory. Most of our utilities have not yet been released. To give some context, currently (July 2022), we only have two utilities that are live; our DEX and the Y5 Trader Token. These are both generating profit with which we burn Y5WT. Sometime between July 20th and July 25th, our Centralized Exchange will be going live, with Fiat-On/Off ramping and the Y5GBP Stablecoin. We expect this to give us a further boost, and the goal is to reach a point where we are burning $100,000 a day of Y5WT once our ecosystem is complete.
This article has discussed only the Buyback and Burn. The math above only considers the buyback and burn from revenue-generating utilities. This does not include any actual volume from buys or sells of the Y5 Wealth token.
So take this math with a pinch of salt; it’s not meant to be accurate, just to show what’s possible with the buyback and burn alone. As the circulating supply decreases, your assets will increase in value, making buyback and burn an essential part of the Y5 Finance plan moving forward. If you have any questions about the information in this article or anything associated with Y5 Finance, you can get in touch with our team on Telegram or Discord 24 hours a day.