Burn Mechanism
How FORGE becomes more scarce over time through automatic and permanent token burning.
How Burns Work
A portion of every trading fee collected by the platform is used to permanently destroy FORGE tokens:
- User places a trade on a prediction market
- The 5% platform fee is collected from the losing side upon resolution
- A percentage of that fee is allocated to FORGE buyback
- Purchased FORGE tokens are sent to the burn address (
0x000...dead) - Burned tokens are removed from circulation forever
Burn Mechanics
| Property | Value |
|---|---|
| Burn Method | Automatic — triggered by platform fees |
| Burn Address | 0x000000000000000000000000000000000000dEaD |
| Reversible? | No — permanently destroyed |
| Re-mintable? | No — hard cap enforced by smart contract |
| Manual Burns | Any holder can burn their own tokens via burn(amount) |
Deflationary Impact
- More trading = more burns — as platform volume grows, burn rate accelerates
- Supply shrinks permanently — 1B is the theoretical max, actual supply only decreases
- Increasing scarcity — remaining tokens become more scarce over time
🔥
Transparency: All burns are on-chain and verifiable on BscScan. You can track total tokens burned at any time by checking the dead address balance.
Treasury Buyback & Burn
In addition to automatic fee-based burns, the treasury reserve allocation (10% / 100M FORGE) can be used for periodic buyback & burn campaigns:
- The protocol treasury can buy FORGE from the open market and burn it
- This is a discretionary mechanism controlled by the team multi-sig
- Buyback events are announced and executed transparently on-chain
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