Burn Mechanism

Why Burn Matters

The #1 reason STEPN and Axie Infinity failed: Unlimited token supply → Hyperinflation → Token death

VEFFUT solves this with aggressive, multi-layer burn mechanisms.

VFT Burn Mechanisms

1. Pack Opening Burn (40% of VFT used)

Player buys 10 packs @ 1000 VFT each
├─ 10,000 VFT spent
├─ 4,000 VFT burned (40%) ✅
├─ 3,000 VFT to reward pool (30%)
└─ 3,000 VFT to treasury (30%)

2. Card Upgrade Burn (50% of VFT used)

Upgrade card Level 5 → 6 (costs 500 VFT)
├─ 500 VFT spent
├─ 250 VFT burned (50%) ✅
└─ 250 VFT to stakers (50%)

3. Tournament Entry Burn (20% of VFT used)

100 players enter tournament @ 100 VFT each
├─ 10,000 VFT collected
├─ 2,000 VFT burned (20%) ✅
├─ 7,000 VFT to prize pool (70%)
└─ 1,000 VFT to platform (10%)

4. Marketplace Transaction Burn (5% of sale price)

NFT sold for 10,000 VFT
├─ 500 VFT burned (5%) ✅
├─ 9,000 VFT to seller (90%)
└─ 500 VFT platform fee (5%)

5. Daily Activity Burn (automatic)

• 0.1% of all VFT in circulation burned daily

• Distributed burn (all holders contribute proportionally)

• Rewards active players

Burn Rate Projection

Year	VFT Burned	Net Supply Change	Remaining Supply
Year 1	~200M VFT	-60M (after emissions)	940M
Year 2	~150M VFT	-30M (after emissions)	910M
Year 3	~100M VFT	0 (balanced)	910M
Year 5	~450M cumulative	-100M total	900M

5-Year Target: 20-25% net reduction in circulating supply

Note: Burn projections depend on platform activity levels. Higher user engagement = higher burns.

VGT Burn (Bonus Deflation)

• Quarterly buyback & burn from platform revenue

• 10% of marketplace fees

• Locked VGT from inactive accounts (1+ year)

The Result

Unlike other GameFi projects that experienced hyperinflation and token death, VEFFUT's aggressive burn mechanisms ensure:

• ✅ Decreasing token supply over time

• ✅ Increasing scarcity and value

• ✅ Sustainable long-term economy

• ✅ Rewarding active players