Fixed Price Burning Mechanism

The Fixed Price Burning Mechanism (FPB) is an innovative approach introduced by Pure.cash to address the challenge of empowering tokens in current DeFi projects. By continuously injecting protocol revenue (50% of total trading fees) into the Burning Pool and setting a reasonable Burn Price (adjustable by the DAO), the protocol allows anyone to burn $PURE through the Burning Pool and receive assets from the pool at the fixed Burn Price.

The FPB is fully implemented through on-chain smart contracts, eliminating the need for any manual operation or third-party risks. Additionally, this mechanism has two distinct features:

1. Reducing Token Supply: The mechanism continuously burns tokens to decrease the overall supply, thereby increasing the value and scarcity of $PURE.

2. Floor Price Buffer: A reasonable Burn Price is set by the DAO.

• When $PURE's market price is above the Burn Price, the Burning Pool accumulates assets.

• When $PURE's market price is below the Burn Price, the Burning Pool consumes assets, continuously fueling $PURE burns and driving its price up.

This mechanism continuously boosts $PURE’s value and scarcity while providing a buffer when its price falls below the Burn Price.