$FOTON Buyback & Burn

See: Why Buyback & Burns Are Important Sources of Buyback & Burn Funds Frequency and Weight of Buybacks Momentum Reserve's Role in Buybacks

Nexapia's $FOTON buyback and burn mechanism is a deflationary strategy aimed at reinforcing token value and ecosystem sustainability. $FOTON will be repurchased periodically from FPeX using a portion of fees generated across the platform. All repurchased tokens will be permanently burned, reducing circulating supply and enhancing scarcity. Buyback weight will be proportional to the fees earned during each period.

Why Buyback & Burns Are Important

  1. Token Value Support Burning repurchased $FOTON reduces circulating supply, supporting price stability and reinforcing long-term value.

  2. Deflationary Pressure Each burn decreases the total token supply, creating scarcity that benefits holders over time.

  3. Market Liquidity Impact Buybacks add regular buy-side pressure, improving liquidity and enabling smoother trading activity.

  4. Community Confidence Consistent buybacks frequently executed demonstrate Nexapia’s ongoing commitment to token health, boosting trust and long-term participation.

Sources of Buyback & Burn Funds

Funds for $FOTON buybacks are derived from multiple revenue streams and wiithin the Nexapia ecosystem:

  1. Nexapia NFT Marketplace Service Fees

    • 1% of Total Transaction: (50% of Momentum Reserve) Collected when users purchase NFTs on Nexapia NFT Marketplace.

  2. Nexapia NFT Launchpad Service Fees

    • 2% of Total Transaction: (50% of Momentum Reserve) Collected during the minting of NFTs through the Nexapia NFT launchpad.

  3. Nexapia DEX (FPeX) Service Fees

    • 1% to 6.25% of Transaction Fees: (50% of Momentum Reserve) Collected when users perform swap actions on Nexapia DEX (FPeX).

  4. Nexapia Flare Time Series Oracle (FTSO) Rewards

    • 25% of FTSO Rewards: (50% of Momentum Reserve) Nexapia’s FTSO will generate $WFLR rewards from oracle operations. 50% of total rewards are allocated to the Momentum Reserve.

  5. Unclaimed Staking Rewards

    • 50% of Unclaimed Rewards: (50% of Momentum Reserve) All unclaimed staking rewards from the Yield Vault are redistributed through the Momentum Reserve.

Frequency and Weight of Buybacks

To maintain consistency and support the Nexapia ecosystem, $FOTON buybacks are planned to be executed regularly (approximately every 6 hours) at a randomized time within each interval. This unpredictability prevents market manipulation and enhances stability. The weight of each buyback is determined by the total fees and revenues generated from all sources (e.g., marketplace transactions, FPeX swaps, FTSO rewards, unclaimed staking rewards etc.) during the interval preceding the buyback. This dynamic approach ensures that buybacks remain sustainable and responsive to ecosystem activity.

Momentum Reserve's Role in Buybacks

The Nexapia Momentum Reserve is pivotal in sustaining the buyback mechanism. It is funded through ecosystem revenues and distributes 50% of its allocation towards $FOTON buybacks. The remaining reserve is divided as follows:

  • 20% to the Governance Wallet for ecosystem acceleration and development.

  • 30% to the Yield Vault for staking rewards.

The $FOTON buyback program, intended to be executed approximately every 6 hours, is a vital component of Nexapia's ecosystem strategy. By leveraging revenues from multiple streams and dynamically adjusting the weight of each buyback based on generated fees, Nexapia ensures the long-term growth, health, and stability of $FOTON while consistently rewarding its community.

Further Reading

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