MINTING AND BURNING

The minting and burning mechanisms are designed to balance SFDT’s supply over time, ensuring a sustainable economy that rewards long-term holders and aligns with the platform’s growth.

Minting Mechanism

The SkyFleet Dash Token (SFDT) operates on a fixed supply model, with a total cap of one billion tokens. This means that no additional tokens can ever be created beyond this predetermined limit, ensuring long-term scarcity and predictability in token economics. The entire supply is minted at launch and distributed according to a detailed allocation plan. This approach enhances transparency, eliminates the risk of unchecked inflation, and provides stakeholders with a clear understanding of how the token supply is managed from the outset.

Burning Mechanism

To support long-term value and sustainability, SkyFleet Dash incorporates a strategic burning mechanism that gradually reduces the total supply of SFDT over time. A small percentage of tokens used in specific transactions—such as in-game purchases or NFT marketplace trades—is permanently removed from circulation. This deflationary model creates scarcity, which can contribute to the appreciation of token value as platform usage and demand increase.

Additionally, when players convert Earned GameCoins (GC) into SFDT, the smart contract automatically burns 2% of every SFDT transfer. This is hardcoded in the SFDT contract (burnTax = 20/1000) and applies to all transfers, not just conversions — creating continuous deflationary pressure across all ecosystem activity. This not only incentivizes player activity but also serves as a supply control measure, ensuring that the increase in circulating tokens does not outpace demand. To further stimulate interest and reward ecosystem engagement, the project may conduct periodic burn events. These events could involve the burning of reserve tokens or unused ecosystem allocations and may be triggered by key community milestones or governed through community voting. By combining automatic and strategic burning mechanisms, SkyFleet Dash reinforces a sustainable economic model that rewards participation while maintaining token value. By employing these burn mechanisms, SkyFleet Dash reduces the circulating supply over time, creating a deflationary pressure that can help increase SFDT’s value as demand within the ecosystem grows.

In addition to transaction-level burns, SkyFleet Dash operates a Quarterly Buyback & Burn program. A fixed percentage of platform revenue — including tournament rake, NFT marketplace fees, and premium purchase revenue — is used to purchase SFDT from the open market each quarter. All purchased tokens are permanently burned, and a public report with on-chain transaction hashes is published for full community transparency.