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Buyback and Burn

Objective#

To support the value of DENA, the key token of DeNations, we operate the following monetary policy.

Monetary Policy#

Buyback#

Buyback Budgets

  • Up to 10% of quarterly Nation Ownership sales (directly sold by DeNations) sold in Ether may be used as a quarterly buyback budget for the next quarter, when it is considered that DENA is underpriced. For instance, if accumulated Ether sales of 2021 1Q (January ~ March) sold by DeNations was 100 Ether, then DeNations may use up to 10 ETH as buyback budget of 2021 2Q (April ~ June)
  • 10% of the 1st land sales will be used for DENA buyback and burn.
  • 30% of the royalty fee (3.5%) from land’s secondary sales will be used for DENA buyback and burn.

Buyback Execution Timeline

Buyback execution may happen at arbitrary times at our discretion without prior notice to prevent abusing activity or arbitrage players. Buyback frequency may be also arbitrary.

Burn#

Platform fees (NFT registration fee, NFT upgrade)that users have paid in terms of DENA will be collected and burned monthly.

Inflation#

A perpetual inflation rate of 1~5% per year will begin after 4 years, ensuring continued participation of users at the expense of passive DENA holders. A proper inflation rate can motivate platform activities, thereby increasing platform value and eventually increasing DENA’s value.

1) 100% of newly minted DENA will be allocated to community reward

2) The default inflation rate is set to 3%

3) Holders of DENA can vote to change the inflation rate from 1% to 5%.(requires ⅔ agreement with at least 4% of circulating DENA participating)