Page 14 - HopeCoin - Wealth is Mental Health

www.Hopecoin.io

Buyback & LP.

Buy-back and burn has been a very successful and popular mechanic in the crypto space, which has
historically helped token price appreciation and keeping the tokens scarce.

Burning tokens based on collected fees has some very desirable effects. The approach’s beauty is the
inverse correlation between the project’s success, and the number of tokens burned, essentially creating a
self-regulating mechanism for the total number of tokens in circulation.

With the emergence of Decentralised Finance (DeFi) and Automated Market Makers (AMM) such as
UniSwap, a new approach has emerged that has the core benefits of the buy-back and burn approach
with the added value of deeper liquidity - buy-back and liquidity provision. In this scenario, instead of
burning tokens, they are first provided as liquidity for the token on its main AMM market, and then the
resulting LP tokens are burned. Thus combining the benefits of the reduced token supply together with
deeper liquidity for the token.

In $HOPE’s case, 2% of all transactions will be used for buy-back & LP, thus reducing the token supply and
deepening the liquidity of the token.

As the supply decreases, the scarcity of the token increases. This inversely proportional relationship
constitutes a supply and demand model. Furthermore, there is no limit as to how many tokens can be
burned. Without a burning limitation, many can predict what happens next.

Manual Burns
A continuous burn on any one protocol can be excellent in the early days; however, this means the burn
cannot be finite or controlled in any way. Having burns controlled by the DAO and promoted based on
achievements helps keep the community rewarded and informed. The conditions of the manual burn and
the amounts can be advertised and tracked.

The HOPE DAO aims to implement a burn strategy that is beneficial and rewarding for those engaged for
the long term. Furthermore, the total number of $HOPE burned will be featured on our readout located on
the website, which allows for further transparency in identifying the current circulating supply at any given
point in time.

14