Perpetual Burn Program

Enhancing Tokenomics for Sustainable Growth

The tokenomics of $AITECH are designed to strengthen its value and utility within the Compute and AI Marketplaces. Token burns and staking rewards are key mechanisms within this framework, ensuring long-term value appreciation and ecosystem sustainability. The perpetual token burn strategy ensures a deflationary model that enhances scarcity and incentivizes participation.

Tokenomics Structure

At the core of the ecosystem, $AITECH serves as the currency for purchasing GPU power, AI solutions, and related services. To support its long-term scarcity and value, a dynamic token burn mechanism is implemented alongside strategic staking pool replenishment.

Token Burn Mechanism

Allocation Structure:

A portion of the profits from all transactions within the ecosystem is allocated to reinforce the token economy. Specifically, a percentage (between 10% to 20%) of the profits is utilized as follows:

• Burn Mechanism: Half of this allocation (5 to 10%%) is permanently removed from circulation.

• Staking Replenishment: The remaining half (5 to 10%) is directed towards replenishing the staking pools.

Gradual Adjustments to Burn Rate:

To sustain long-term token value, the allocation structure dynamically adapts:

• Increasing Burn Rate: Over time, the percentage of profits allocated for burning increases, progressively approaching and maintaining X% permanently.

• Decreasing Staking Pool Contributions: The proportion of tokens directed to staking pools gradually declines, ensuring that the emphasis shifts towards scarcity and value enhancement.

Why This Matters

This evolving mechanism guarantees a continuously diminishing token supply, increasing scarcity and reinforcing long-term token value. The model initially rewards early supporters through staking incentives, but over time, the emphasis shifts toward value appreciation and sustainable ecosystem growth.

Illustrative Example

For clarity, consider an allocation where for example 20% (sample rate; actual rate can vary between 10% to 20%) of transaction profits are committed to this strategy:

Allocation:

• 10% of transaction profits are burned.

• 10% of transaction profits replenish staking pools.

Progressive Adjustment:

• For every 20% of the total token supply burned, the burn rate increases by 2%.

• Over time, the burn rate rises to 12%, 14%, and eventually stabilizes at 20%.

• Simultaneously, staking pool contributions decrease proportionally to 8%, 6%, and ultimately reach 0%.

Note: The above figures are for illustrative purposes only. Finalized burn rates are determined following the completion of our pricing model and will be disclosed upon platform deployment.

Implications of Marketplace Growth

As adoption of the AI and Compute marketplaces expands, transaction volumes and ecosystem activity continue to rise, driving the following outcomes:

• Supply Reduction: Increased transactions result in a higher frequency of token burns, progressively reducing overall supply.

• Demand Growth: Expanding marketplace adoption enhances the need for $AITECH, increasing its utility and circulation.

• Potential Value Appreciation: The interplay of decreasing supply and rising demand fosters an environment conducive to long-term token value growth.

Investor Benefits

For Token Holders:

Early supporters benefit from a deflationary mechanism that enhances scarcity, positioning their holdings for potential value appreciation as demand strengthens.

For Staking Participants:

While staking rewards decrease over time, early incentives combined with an appreciating token value provide strong long-term benefits.

Commitment to Long-Term Growth

The perpetual burn program underscores a dedication to sustainable ecosystem development, value creation, and community-driven success. By aligning tokenomics with long-term incentives, a strong foundation is established for continued growth and marketplace expansion, ensuring that all stakeholders benefit from the evolving dynamics of the ecosystem.

NOTE:

The tokens burnt from the operational profits are not the only source of burn. The management can decide to burn additional tokens from our end during favourable circumstances.