Kim Docs
  • 💡OVERVIEW
  • â„šī¸GET STARTED
    • â‰ī¸FAQ
      • 💰Liquidity and Yield Farming
      • 💸Protocol Earnings
      • 👀What is Impermanent Loss ?
      • 📔Smart Contract Security and Features
  • 🌟PROTOCOL
    • 🔋AMM V2
      • Dual Liquidity Type
      • Dynamic Directional Fees
    • 🧠AMM V4
      • V4 Add Liquidity (concentrated)
        • Auto mode (kpNFT)
        • Manual Mode (LP only)
      • 🛒Fee Collection
    • ⚡KIM Staked Position NFTs (kpNFTs)
      • 📎Properties
      • đŸĨ‡Yield Bearing
    • đŸ”ĨxKIM Plugins
      • Rewards
      • Yield Booster
      • Community Plugins
  • 🟡TOKENOMICS
    • 🔖KIM Token
    • đŸĻxKIM Token
      • How to use xKIM
      • Conversion - Redeeming
    • â›“ī¸Distribution
    • 💰Protocol Earnings
    • đŸ”ĨDeflationary Mechanics
  • ⚡Reference and Audits
    • 🔐Audits
    • đŸĢļCommunity & Social
  • 📖CONTRACTS
    • 📝AMM V2
      • Factory
      • Pair
      • Router
      • Subgraph
    • 📝AMM V4
      • Factory
      • Non Fungible Position Manager
      • BasePluginV1Factory
      • SwapRouter
      • Subgraph
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On this page
  • Buy back & Burn
  • xKIM redeems
  • xKIM deallocations
  1. TOKENOMICS

Deflationary Mechanics

In addition to the hardcap set on KIM, we also implemented some deflationary mechanics in order to reduce the total supply.

Buy back & Burn

A share of the protocol earnings is dedicated to buy back & burn KIM, in order to apply a continuous buying pressure on it.

xKIM redeems

When converting xKIM to KIM, if the vesting duration isn't the maximum, the xKIM:KIM ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the excess KIM will automatically be burned.

For instance, if a user redeems 1000 xKIM with the minimal 15 days vesting duration, she will obtain a 1:0.5 ratio, and receive 500 KIM in the end.

That means a total of 1000 - 500 = 500 KIM will be burned during the process.

xKIM deallocations

When deallocating xKIM from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be of 0.5%.

The corresponding KIM amount will automatically be burned.

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Last updated 1 year ago

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