Burn

Deflationary Mechanism

10% of collected trading fees are used to buy back and burn PALM. A mechanism that will be used to stabilize the supply of PALM in a unique buyback model.

To calculate the percentage of funds from generated fees ($F_p$ - perpetual) that will be allocated to treasury buybacks ($T_{bb}$), we utilize this formula:

$$T_{bb} = 0.1F_p$$

To give an example of projected buyback treasury values, a total of $100,000 will be dedicated towards PALM buybacks assuming $1 mill in perpetual trading fees.

Buybacks will be made strategically and occur over weeks. The PALM bought back from the market will be burned every quartal.