🔥Deflationary Mechanism

Reducing $NEUTRO supply Mechanism

Alongside the established hardcap on $NEUTRO, we have incorporated deflationary measures to effectively decrease the overall token supply.

Buyback and Burn

A portion of the protocol revenues is allocated towards the buyback and burn of $NEUTRO tokens, creating persistent buying pressure on the token.

xNEUTRO Redeem

During the redeem of $xNEUTRO to $NEUTRO, if the vesting duration is not set to the maximum, the xNEUTRO:NEUTRO ratio will be adjusted to a value below 1:1, ranging from 1:0.5 as the minimum. Any surplus $NEUTRO obtained during this process will be automatically burned.

Let's take an example to illustrate this process:

If a user chooses to redeem 1000 $xNEUTRO with the minimum vesting duration of 15 days, they will receive a ratio of 1:0.5, resulting in 500 $NEUTRO. Consequently, a total of 1000 - 500 = 500 $NEUTRO will be burned throughout the redemption process.

xNEUTRO Deallocation

When users deallocate $xNEUTRO from a Plugin, a deallocation tax is imposed, typically set at 0.5%. This tax may vary across contracts. Furthermore, the corresponding amount of $NEUTRO will be automatically burned as a result of the deallocation process.