# Buy & Burn

BOOMTOWN allocates a significant percentage of the mint and revenue towards buying and burning $BOOM tokens, shrinking the fixed, limited supply over time. \
\ <mark style="color:green;">**There are two distinct phases - the Mint Phase and Post-Mint Phase:**</mark>\
\ <mark style="color:green;">**Mint Phase**</mark> - During the initial 30-day auction-style minting phase - 57% of all XNT sent to the contract address is allocated directly to the Buy & Burn address.<br>

<mark style="color:green;">**Post-Mint Phase**</mark> - After the minting phase is complete, 50% of all revenue generated via trading fees from the platform goes to the Buy & Burn address on an ongoing basis.<br>

<mark style="color:green;">**Daily Burn Mechanics:**</mark>

When a user calls the publicly callable Buy & Burn button on the website, a variable percentage of XNT (based on the buy and burn rate set, which can be set anywhere between 1-10%) buys $BOOM and burns it permanently. This is designed to increase token demand (buy) while simultaneously reducing supply (burn), which has shown to be beneficial to the price of a token over a long-term horizon. A small reward of 1.5% of the amount in the pool is paid in XNT to any user who calls the Buy & Burn function on the website. The Buy & Burn will begin after launch of the protocol. <br>

<mark style="color:green;">**Fully Decentralized Process**</mark>

The Buy & Burn process operates under pre-established, transparent rules. These rules ensure clarity on the amount of tokens that will be burnt, maintaining the integrity and predictability of the protocol.&#x20;


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