Burn Mechanism

$AMARA is designed to be deflationary over time through a structured buyback-and-burn program. Instead of relying on arbitrary burns, supply reduction is tied directly to actual protocol usage, making every burn meaningful and transparent.

How It Works

• A portion of protocol revenue is allocated specifically for buybacks.

• These funds are used to purchase $AMARA from the open market.

• All tokens acquired through this program are permanently sent to a burn address, removing them from circulation.

Funding Sources for Buybacks

• Trading Fees: Revenue from perpetual and spot markets.

• Liquidation Fees: Collected when undercollateralized positions are liquidated.

• Funding Rate Spreads: Surplus generated when long and short positions are imbalanced.

• Treasury Surplus: Excess reserves directed by governance once active.

Execution Buybacks are carried out transparently, with transactions visible on-chain. They may occur on a recurring schedule or be triggered by revenue milestones, such as hitting a certain fee threshold. This ensures flexibility while maintaining accountability.

Impact on Supply

• Every buyback reduces circulating supply, directly linking token scarcity to Amara’s adoption.

• Burns compound over time. As usage grows, more revenue is directed to buybacks, accelerating deflationary pressure.

• The effect is twofold: supporting token value while rewarding long-term holders through scarcity.

Long-Term Alignment By tying burns to platform revenue, Amara ensures that deflation is not arbitrary but earned. The more successful the protocol becomes, the more aggressive the burn schedule grows. This design reinforces $AMARA’s role as both a utility token and a store of value tied to the health of the ecosystem.