Burn Mechanism

TokenMesa's burn mechanism permanently destroys a percentage of service tokens on each withdrawal, creating deflationary pressure that reduces circulating supply over time.

How It Works

Burns are triggered during withdrawal events:

1. Anyone triggers withdrawal on the TokenMesa dashboard (permissionless and decentralized)

2. USDC revenue swaps to service tokens through Uniswap V4 (revenue vesting buyback)

3. Burn rate applies to total service tokens:

   • Existing service tokens in the contract

   • Service tokens bought back from USDC revenue

   • You can set burn rate to 0 to disable the deflationary tokenomics

4. Burned tokens sent to 0x000...dead and permanently removed from circulation

5. Remaining service tokens sent to recipient address

Example: With 5% burn rate and 1000 service tokens ready for withdrawal:

• 50 tokens burned (permanently destroyed)

• 950 tokens sent to service provider's recipient address

Why Burn Tokens

Deflationary Pressure: Each withdrawal permanently reduces total supply, creating scarcity.

Token Holder Value: Reduced supply benefits all token holders proportionally - their percentage of total supply increases.

Sustainable Economics: Ongoing burns tied to actual revenue create consistent deflationary mechanism.

Configuration

Set during deployment: Choose your burn rate (2-5% recommended for most services)

Adjustable post-launch: Modify burn rate through contract interaction (dashboard UI coming soon)

Transparency

All burns are on-chain and publicly verifiable:

• View burn transactions on block explorers

• Track cumulative burns on TokenMesa dashboard

• Verify decreasing circulating supply over time

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