🔥The Burn Mechanism

The Burn Mechanism is a critical component of the AIRO Network's tokenomics, designed to reduce the overall supply of $AIRO and increase its value over time.

Burn Mechanism Overview

1. Source of Tokens for Burning:

   • REGEN Fees: A portion of the REGEN fees collected when miners regenerate their STEAM levels.

   • Undistributed Rewards: Remaining rewards that were not distributed to miners at the end of each distribution cycle.

2. Burn Allocation:

   • 50% of the undistributed rewards and REGEN fees collected are burned, decreasing the total supply of $AIRO.

How it Works

• REGEN Fees: When miners regenerate their STEAM levels, they pay REGEN fees. A portion of these fees is allocated to be burned, reducing the circulating supply.

• Undistributed Rewards: Any rewards that were not distributed due to miners not meeting performance criteria are allocated for burning.

• Burn Process: At the end of each reward distribution cycle (e.g., weekly), the designated tokens are sent to a burn address, effectively removing them from circulation.

Example

If the total undistributed rewards and REGEN fees for a week amount to 10,000 $AIRO, this means 5,000 $AIRO would be sent to the burn address, permanently reducing the total supply by this amount.

Benefits of the Burn Mechanism

• Deflationary Pressure: Regularly burning tokens reduces the total supply of $AIRO, potentially increasing its value over time.

• Incentivizes Holding: With a decreasing supply, the value of held tokens may increase, incentivizing miners and holders to retain their $AIRO tokens.

• Sustainability: Ensures the network remains balanced by aligning miner incentives with the long-term health of the tokenomics.

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