Deflationary Token Model And Fee Adjustment Proposal

The current token model follows a 5-year distribution based on Fixed Total Supply. Under our net-zero fee policy, there are no creation fees or seller fees, but a 1% buyers` fee is collected to purchase $RARE from the market and distributed to all token holders.

For reference, the original approved tokenomics proposal can be found below: https://uniqueone.medium.com/unique-one-tokenomics-proposal-for-vote-96eedc2ef85b

Below are the two changes proposed by the community.

1. Switch from Fixed Token Model to Deflationary Token Model

Current policy: Buyers` fee (1%) in ETH or xDai are collected and used to purchase $RARE. The purchased $RARE from the market will be distributed to all token holders.

Proposed new policy: Buyers` fee (to be determined) in ETH or xDai are collected and used to purchase $RARE. The purchased $RARE from the market will be BURNED and supply permanently reduced.

Expected Impact: Total supply of $RARE will reduce according to the level of marketplace activity. Token model will change from Fixed Supply into a DEFLATIONARY TOKEN MODEL.

2. Adjustment To Buyers Fee

Current policy: No creation fees, No sellers fees and 1% buyers` fee

Proposed new policy: No creation fees, No sellers fees and an adjustment of buyers` fee

a) 1.0% buyers fee b) 1.5% buyers fee c) 2.0% buyers fee d) 2.5% buyers fee

Expected Impact: A higher buyers` fee will result in a faster burn rate under a DEFLATIONARY token model or more $RARE distribution to existing token holders under a FIXED token model.

We expect the Unique.One platform to remain competitive even with increased buyers` fees as we are a closed-loop system with zero leakages.