Burning

The burning mechanism is a critical component of Axoria's tokenomics, designed to maintain the balance and value of $AX tokens. Here’s an overview of how the burning mechanism works and its benefits:

How the Burning Mechanism Works

Claiming Tokens:
- When players claim their earned $AX tokens from in-game activities, 10% of the claimed amount is burned. This process reduces the overall supply of $AX, making the remaining tokens more scarce.
In-Game Purchases with $AX:
- Players can purchase in-game skins, cosmetics, and other items using $AX tokens. When these tokens are spent, they are burned, further reducing the total supply. This ensures that token usage within the game directly impacts the token economy.

Benefits of the Burning Mechanism

Supply Reduction:
- The primary benefit of burning tokens is the reduction of the total supply. As the number of tokens in circulation decreases, each remaining token becomes more valuable, benefiting all token holders by potentially increasing the market price of $AX.
Value Appreciation:
- By continuously burning a portion of tokens, Axoria creates a deflationary effect. This deflationary pressure can lead to an appreciation in the value of $AX tokens over time, making them a more attractive investment for both players and investors.
Incentivizing Engagement:
- The burning mechanism incentivizes players to engage more with the game. Knowing that a portion of the tokens they earn and spend will be burned, players are motivated to participate in various in-game activities that contribute to the token's overall scarcity and value.
Balancing Supply and Demand:
- Burning tokens helps balance the supply and demand dynamics of $AX. As more tokens are burned through claims and purchases, the reduced supply helps counteract any potential inflationary effects from new tokens being introduced into the market through gameplay rewards.
Long-Term Sustainability:
- The burning mechanism is a crucial tool for ensuring the long-term sustainability of Axoria's economy. By maintaining a controlled and decreasing supply of $AX tokens, the game can create a stable and growing economic environment that benefits both active players and long-term investors.

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Last updated 25 days ago

How the Burning Mechanism Works

Claiming Tokens:

When players claim their earned $AX tokens from in-game activities, 10% of the claimed amount is burned. This process reduces the overall supply of $AX, making the remaining tokens more scarce.

In-Game Purchases with $AX:

Players can purchase in-game skins, cosmetics, and other items using $AX tokens. When these tokens are spent, they are burned, further reducing the total supply. This ensures that token usage within the game directly impacts the token economy.

Benefits of the Burning Mechanism

Supply Reduction:

The primary benefit of burning tokens is the reduction of the total supply. As the number of tokens in circulation decreases, each remaining token becomes more valuable, benefiting all token holders by potentially increasing the market price of $AX.

Value Appreciation:

By continuously burning a portion of tokens, Axoria creates a deflationary effect. This deflationary pressure can lead to an appreciation in the value of $AX tokens over time, making them a more attractive investment for both players and investors.

Incentivizing Engagement:

The burning mechanism incentivizes players to engage more with the game. Knowing that a portion of the tokens they earn and spend will be burned, players are motivated to participate in various in-game activities that contribute to the token's overall scarcity and value.

Balancing Supply and Demand:

Burning tokens helps balance the supply and demand dynamics of $AX. As more tokens are burned through claims and purchases, the reduced supply helps counteract any potential inflationary effects from new tokens being introduced into the market through gameplay rewards.

Long-Term Sustainability:

The burning mechanism is a crucial tool for ensuring the long-term sustainability of Axoria's economy. By maintaining a controlled and decreasing supply of $AX tokens, the game can create a stable and growing economic environment that benefits both active players and long-term investors.