Burn Mechanisms and Inflation
There are a lot of burning mechanisms in We Fukc. That is because we believe that sharing the wealth that comes with the growth of the community is the best outcome for everyone.
Burning
Unfortunately, we can calculate the burn rate accurately because the most significant parts of the burning mechanisms are dynamic. However, we can estimate rough numbers.
Minting Mechanism
The only fixed burning mechanism is the minting mechanism and people will burn $100 worth of FUKC to mint a boss. How many bosses will be minted in what time period is totally up to the community.
Selection Mechanism
Selecting a boss requires burning the FUKC token. If you select a boss for the first time for that selection, you should burn at least 1 FUKC token to be the selector of that boss. If someone else burns more than you, you can't get back your token. And that goes on until the end of the selection.
Every week (seance) people will select bosses as a candidate for the next seance. There are 20 different levels to select a boss. And it is most likely that there will be multiple selected bosses for each level. The selectors have a 10% share of the Boss Rewards. This means we will see lots of burns in this stage each week.
Election Mechanism
After selecting bosses as a candidate, people will fund for their boss to be elected as a level boss for that specific level. Unlike selections, everyone can fund the same boss and be the backer of that boss. But again, unlike selections, only one boss will be the level boss and that boss will be the most funded boss.
There are 2 burning mechanisms here. First, the funds of the bosses that lose the elections will burn completely. If two bosses go head-to-head in the competition with lots of funds loaded, one of them will eventually lose the election and the funds will burn. This will cause a lot of burnings because of the high Backers Rewards!
The second burning mechanism in Elections is that some portion of the funds of the elected boss will burn and the remaining funds will be distributed as Boss Rewards. The burning ratio of the funds changes from level to level in a range of 25% to 72.5%. You can see the details in the Boss Rewards.
The first burning mechanism has no power if everyone agrees on the same boss and there is no competition. But the second burning mechanism of the elections is a fixed mechanism that would burn around 60% of the newly minted tokens.
Armament
Players will mint weapons and bullets to reach and complete upper levels. They will burn FUKC tokens they earned from lower levels to mint these armaments. If they won't spend their earnings on armaments, they won't be able to play on upper levels and share a small treasury with a large number of people.
The higher they play, the higher they earn and the higher they burn. Therefore, some portion of the boss treasury (50% of the Boss Rewards) will burn as well.
Inflation
FUKC token inflation is crazy high in the first year of the game. But more than 82% of the newly minted tokens will go to the community through the game (58% backers, 14% airdrop, +5% events, +5% marketing drops). This will lead us to more growth and adoption which will make inflation less effective.
Of course, when we consider the burning mechanisms mentioned above, the inflation rate will decrease dramatically. If we consider a hypothetical situation where 80% of circulation selects the exact same boss there would be no competition burns. In that perfect situation, 66% of the newly minted tokens would burn every week. This would decrease the inflation from 6,900% to 2,250%. This is a great decrease but there is more. In this perfect situation, all backers would earn a 15,500% APR which is crazy. And it is most likely to see that not 80% of the circulation would attend every election every week, which increase the APR to more than 20,000%.
Even with the perfect situation where the least burning rates happen, the first year's inflation decreases from 6,900% to 2,250%. But a high earning rate like 15,500% APR will attract more and more players into the game and competition will cause a lot of burning as you read above in the selection and election mechanisms. Therefore we estimate that the first year's inflation will be lower than 1,000% and the following years will be lower than 35%.
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