Buyback and Burn Mechanism

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ZkStable ensures long-term token value stability with a dynamic buyback and burn loop.

🔁 Mechanism Overview

1. Protocol fees (minting, swaps, redemption) accumulate in $pUSD.

2. Treasury AI agents monitor price ratios and excess liquidity.

3. Excess $pUSD automatically converts into $PRIVACY and burns it on-chain.

⚙️ Formula

Burn Amount = (Protocol Revenue × Burn Ratio) / Market Price(PRIVACY)

Default Burn Ratio: 15%

📊 Transparency

All buyback events are logged and verifiable via: https://explorer.zkstablerpc.com/burns

💡 Impact

• Reduces circulating $PRIVACY supply.

• Supports price stability.

• Incentivizes long-term staking.

🧠 Governance Adjustability

DAO can vote to modify:

• Burn ratio (5–25%)

• Execution frequency

• Buyback trigger thresholds