Deflationary Tokenomics and Burning Mechanisms
Last updated
Last updated
At the heart of METERA’s tokenomics is our deflationary mechanism. The protocol is set up so that, through the guidance of the DAO, tokens are burned during key moments—like when fees are collected, during MTK transactions, and as part of specific governance actions. Each burning event permanently removes METERA from circulation, reducing the total supply and making the remaining tokens more scarce and valuable.
Platform Fee Burning:
A portion of the fees collected in ADA is used to purchase and burn METERA, directly reducing the available supply.
MTK DAO Creation:
When community members propose new MTKs, they must commit a certain amount of METERA. The proposals with the most METERA committed and that follow the guidelines, if approved, the proposer is required to burn the committed METERA.
METERA Staking:
Our staking program is designed differently. Instead of receiving more METERA as rewards, users earn yield through MTK shares. This approach helps remove tokens from circulation and further supports long-term scarcity.
METERA as an underlying of MTKs
All MTKs in the platform are required to hold a minimum % of METERA within its asset composition. Thanks to our balancing algorithm, this will organically generate volume for the METERA token. Furthermore, it will increase the value of METERA by securing a % of the TVL managed in the platform through MTKs.
This integrated approach ensures that almost every interaction on our platform contributes to lowering the total supply of METERA, steadily driving up its value and delivering long-term benefits to all token holders. We also incorporate METERA as an underlying asset within our instruments.
