Burning

Token burning is a core feature of the FRENCHIE ecosystem, designed to create a deflationary effect that enhances the token's value over time. By permanently removing a portion of $FREN tokens from circulation, the burning mechanism aligns with the project’s goal of fostering scarcity and incentivizing long-term holding.

How the Buy-Back and Burn Works

The FRENCHIE ecosystem incorporates a buy-back and burn mechanism to ensure consistent value creation and sustainability. A percentage of 0,50% of the transaction fees, and a percentage (TBD) of ecosystem revenue is allocated to buy back $FREN tokens from the open market, contributing to a steady reduction in circulating supply.

This dual-layered burning approach helps counteract inflation and supports a healthier token economy. These purchased tokens are then sent to a verifiable “burn address,” a wallet that no one can access or recover tokens from, effectively removing them from the total supply forever.

• Increased Token Scarcity:

  By reducing the overall supply, token burning fosters scarcity, which can drive demand and potentially increase the token's value over time.

• Price Stability:

  The buy-back mechanism absorbs market pressure, while the burning process gradually decreases the circulating supply. Together, they help mitigate price volatility, particularly during periods of high trading activity.

• Community-Centric Growth:

  Every transaction and buy-back contributes to the long-term health of the ecosystem, ensuring that all holders benefit equally from the deflationary effects.