$XCHNG Burn Mechanism

Overview:

This proposal outlines an upgraded tokenomics strategy for XCHNG, designed to address the increased total supply and align with our profit-sharing model. The proposed approach will reallocate part of the profit in a way that benefits DAO stakers and introduces a deflationary tokenomics model.

Proposed Tokenomics Structure:

1. 75% Profit Sharing to DAO Stakers: Adjust the DAO stakers' profit share from 80% to 75%, reallocating the 5% difference to a buyback and burn mechanism.

2. 5% Buyback and Burn Mechanism: Dedicate 5% of the company profit to purchasing XCHNG tokens from the market quarterly (starting Q3), which will be burned the following quarter (e.g. Q4). This process will gradually reduce the total supply of XCHNG, introducing a deflationary model.

3. 20% Company Retention: Reserve the established 20% of profit for company use, ensuring continued operational sustainability and growth.

Key Benefits:

Deflationary Supply Model: The buyback and burn mechanism adds a deflationary aspect to XCHNG’s total supply, gradually decreasing the number of tokens in circulation.

Sustainable Profit Sharing: While 75% of profit will still be allocated to DAO stakers, the introduction of the buyback and burn mechanism enhances the value proposition for long-term participants.

Balanced Allocation: By slightly adjusting the profit distribution, this proposal seeks to balance immediate returns with sustainable long-term growth, benefiting both DAO stakers and the project.

Conclusion:

This proposal presents a balanced approach to tokenomics that supports both immediate and long-term goals. By implementing a buyback and burn mechanism alongside a slight reduction in profit sharing for DAO stakers and responsible company retention, we aim to create a sustainable and value-driven future for XCHNG and its community: THE HIGHER THE VOLUME -> THE HIGHER THE PROFIT -> THE HIGHER THE BURNS' VALUE.

Action Required:

We ask the DAO members to review this proposal and cast their vote to approve the implementation of the XCHNG burn mechanism.