Let's make dollar cake great again! Change the token burning method to de minting.

we want to change cake token burning method to de mint instead of normal burning :

What is GBM or Gamified Burning Mechanism in Wigo?

We are all familiar with the concept of Burning. Burning means transferring part of circulating tokens to Null address.

0x0000000000000000000000000000000000000 dead

No one has the private key of this address, so any token that is transferred to this address is practically out of circulation and so-called burned, so Burning reduces the Circulating Supply in normal mode.

But Burning in this way does not affect the Total Supply because the balance of the Null address is technically considered a part of the token supply.

This is where another type of burning, called de-minting, comes into play. In de-minting, in addition to transferring a part of the tokens to the Null address, the total number of tokens is also reduced or de-minted. Therefore, the number of tokens has decreased in the real sense.

But what is the use of this? I will start with an example for better understanding:

Pancakeswap or Cake token uses the normal burning mechanism, that is, it spends part of the protocol fees to buy back and burn the Cake token. It buys Cake from the market at whatever price it was and transfers it to the Null address and removes it from circulation, this means that a part of Cake is removed from circulation, but the Total Supply does not decrease, and since it is an AMM service, it is used to reward the liquidity providers of tokens. The new Mint does, so it is possible that its Total Supply will reach the hard-cap or ceiling of the Mint Token permission defined in the Smart Contract, and the rewards to the liquidity providers will stop.

But de-minting happens in Wigo, which means that part of the protocol's income is used to re-buy the Wigo token and de-mint it. Therefore, in addition to the withdrawal of the token from circulation, the number of Total Supply will also decrease and the possibility of minting the new token before reaching the hard-cap will be provided to reward the liquidity providers.

Wigo combines this de-minting mechanism with Gamification topics to get users to help de-mint more tokens by entering them into various fun challenges.

This mechanism may seem simple on the surface, but if it can increase the amount of token de-minting per day by increasing the activity to more than the amount of token minting per day, it will practically lead to a limited economy (due to having a hard-cap of two billion) with Negative inflation (due to higher de-mint rate than Mint) becomes! Therefore, the more activities and users of this platform, the rarer and more valuable the token becomes. It is a win-win-win-win model for the holder, user, liquidity providers and nodes or network beneficiaries. I have said many times that any dApp that is transaction-oriented and user-oriented will be noticed by the stakeholders of the network.