IKONIK - grow the network and guide users to maximize value exchange.
PRESERVING IKONIC’S VALUE Token-based rewards and incentives are essential to grow the network and guide users to maximize value exchange. But without corrective support, the market may come to fear that user growth on the network is not strong enough to carry the same price per token. To manage this risk, IKONIC is going to commit to burning a percentage of all tokens staked in the lottery contest, and a share of all marketplace and NFT fees it collects for its network revenues. This mechanism establishes an implicit link between burn rates and transaction volume values. While fiat remains the dominant reference currency for transactions, that link offers an additional advantage. It implies that the token burning has the potential to be self-regulating. Larger burns occur when the value of IKONIC is low (providing more value-defending pressure), and less IKONIC is burned when its value is strong (avoiding deflationary returns outweighing the utility ...