$BIST Token Burning Mechanism Based on Bistroo’s Monthly GTV
To initialise a deflationary nature for the $BIST token supply, we will implement a burning mechanism tied to Bistroo’s Annual Gross Transaction Volume (GTV).
Below is the structured approach, program description and a layout of terms & conditions that apply:
1. Mechanism Overview
The token-burning process will burn a percentage of BIST tokens every month, based on the platform’s annual GTV. Therefore reducing the total supply relative to the platform’s gross transaction value.
- Every month, a portion of BIST tokens will be burned based on the platform’s Annual GTV.
- The applicable burn percentage tier is determined at year’s end and applied evenly over the next 12 months. Resulting in a predictable mechanism.
- The monthly burn amount is determined based on the average market-price of $BIST at previous month’s end.
- A degressive model fosters cost-efficiency as the platform grows.
2. Burn Rate Tiers
Annual GTV (EUR) BIST — Burn Rate Tier (%)
- <€10M → 0.75%
- €10M — €20M → 0.60%
- €20M — €35M → 0.45%
- €35M — €50M → 0.30%
- €50M — €75M → 0.20%
- > €75M → 0.10% (minimum burn floor percentage)
3. Example Scenarios
When Bistroo reaches €40 million in annual GTV, the applicable burn tier is 0.30%. This would result in €120,000 worth of BIST tokens to be burned throughout the year — approximately €10,000 per month.
When Bistroo reaches €75+ million in annual GTV, the applicable burn tier is 0.10%. (Burn-floor tier) This would result in €75,000 worth of BIST tokens to be burned throughout the year — approximately €6,250 per month.
When Bistroo reaches €100+ million in annual GTV, the applicable burn tier is 0.10%. (Burn-floor tier) This would result in €100,000 worth of BIST tokens to be burned throughout the year — approximately €8,333 per month.
4. Execution Process
- The burn tier is locked for the calendar year based on the previous year’s GTV.
- This structure creates predictable deflation, and aligns with platform growth.
- Burn frequency: Monthly burns will be executed based on the applicable GTV tier.
- Tokens used for burning will primarily be sourced from the BIST Treasury or any other available company-held reserves.
- Burn execution involves sending $BIST tokens to an irrecoverable blockchain address (burn wallet), rendering them permanently inaccessible.
- Transparency: Burn transactions are publicly verifiable on the blockchain.
- Communication: Burn events are communicated via official channels.
5. Ecosystem Benefits of this model
✅ Supply & Demand — Continuous influence long-term demand and supply dynamics for $BIST.
✅ Community Engagement — Transparent and periodic burns might promote engagement for token holders.
✅ Community Contributions — Tokenholders might be able to influence burn-rates and burn amounts by helping the platform grow in GTV. i.e. Onboarding new restaurants results in a direct opportunity for GTV growth, and therefore (in)directly influences the burn-mechanism variables.
DISCLAIMER
Maintaining a burning mechanism structured above is always dependent on the economic feasibility of potential buybacks and/or available supply. If the treasury, supply, or prices, do not support the sustainable maintenance of the model set-out above, adjustments will have to be made.
Bistroo reserves the right to unilaterally adjust, suspend, or terminate the burning mechanism at all times, which can be done under, amongst others but not limited to, the following conditions:
- Economic infeasibility: If the available treasury balance or market conditions render buybacks or burns unsustainable.
- Regulatory changes: If new legal or regulatory requirements prevent or limit token burning practices.
- Force majeure events: In circumstances beyond Bistroo’s reasonable control (e.g., security breaches, operational disruptions).
The $BIST burning mechanism is intended to enhance the sustainability and engagement of the Bistroo ecosystem. However, Bistroo does not guarantee any specific outcomes resulting from the burning process.
