Tokenomics

overview thissofire’s tokenomics revolve around the fundshare token — a bep 20 token that represents ownership in a specific on chain index fund (vault) each fundshare is a receipt of deposit , redeemable at any time for bnb (based on nav) a governance instrument , granting voting rights within that vault a deflationary asset , benefiting from every trade through the auto buyback and burn mechanism unlike most defi protocols, thissofire does not have a central or inflationary “platform token ” instead, each fund token is self sovereign, forming its own micro economy that rewards holders and scales with trading activity — with all tokens backed by user deposits the fundshare token definition each index fund (vault) issues one corresponding bep 20 fundshare token for example memecoin index → $ofire ai index → $fireai defi blue chip index → $firedefi these tokens function like on chain etfs , representing proportional ownership of the vault’s total value properties name \[fund name] fundshare symbol fire\[index] decimals 18 standard bep 20 (with tax logic for dex transfers) mint/burn authority fundvault (the associated index contract) each fundshare token bridges user capital to the vault’s tvl — a tokenized claim that’s freely tradable, composable, and deflationary by design supply model the fundshare token’s supply is dynamic and elastic, expanding and contracting according to user actions action supply effect description deposit (mint) increases vault mints new fundshares equal to deposit value / nav redemption (burn) decreases vault burns fundshares on withdrawal buyback burn (tax) decreases dex trading tax buys fundshares and burns them rebalance neutral internal asset reallocation — no mint/burn governance burn decreases optional burn via treasury or dao vote over time, as trading grows and buybacks increase, supply naturally trends downward — introducing scarcity pressure on the fundshare token deflationary design thissofire’s deflationary mechanism ensures that every transaction strengthens the vault key mechanics 1% transaction tax on pancakeswap trades (per vault configurable) 80% of tax proceeds automatically buy fundshares → burn 20% routed to the vault treasury outcome continuous supply contraction continuous underlying asset accumulation (due to buy pressure) continuous increase in nav per share value accrual to holders the fundshare token delivers value through three simultaneous channels nav appreciation — as the vault’s underlying assets rise, nav per share rises (etf like value) deflationary supply — burns reduce circulating supply; fewer tokens represent the same (or larger) nav market activity alignment — volume fuels fees and burns; even volatility becomes productive nav vs market price fundshare tokens exist in two valuation layers metric definition determined by nav (intrinsic value) value of underlying assets / total shares oracle & vault data market price current dex price per fundshare supply/demand in liquidity pools if market price > nav , arbitrageurs deposit bnb → mint → sell on dex if market price < nav , arbitrageurs buy on dex → redeem for bnb at nav this keeps market price closely tethered to nav, ensuring price stability and efficient trading per fund tokenomics customization each vault can define its own tokenomic configuration, including deposit/withdrawal fees 0–5% dex trading tax 0 5–3% burn allocation ratio default 80/20 split management fee (optional) ≤ 1% annualized governance rules voting threshold, quorum, time lock examples memecoin funds (e g , with floki , baby doge , pit ) may choose 1–2% trading tax for a stronger burn loop blue chip funds may favor lower fees and tighter arbitrage thresholds dao controlled funds can adapt parameters via governance governance utility fundshare tokens double as governance assets holders can create and vote on proposals that affect their vault’s parameters action description add/remove tokens modify the basket composition adjust weights rebalance allocations per asset set fees change deposit/redeem/trading tax rates within caps use treasury funds allocate bnb for liquidity or marketing trigger rebalance force immediate alignment with targets pause/unpause vault emergency controls voting rights scale with holdings; all decisions pass through an on chain time lock before execution — creating a community owned index liquidity incentives & lp strategy fundshare tokens can be paired with bnb on pancakeswap to form liquidity pools governance may incentivize lps by redirecting part of the 20% treasury allocation as lp rewards offering boosted rewards to lps who lock liquidity periodically buying and reseeding liquidity during growth phases this supports deep liquidity, low slippage for arbitrage, and robust price discovery treasury utility and flow the treasury portion of trading taxes accumulates bnb over time and serves several purposes purpose description liquidity provisioning strengthen pancakeswap pools and price stability marketing & partnerships community initiatives and co branding security audits fund external code audits emergency insurance reserve for vault level incidents token buyback (manual) governance directed extra buybacks each treasury is vault specific ; e g , $ofire holders manage their own treasury, independent of other funds inflation vs deflation dynamics thissofire introduces controlled elasticity new supply (minting) occurs only when new capital enters the fund supply reduction (burning) happens continuously from dex trading activity thus, supply changes are tied to real economic activity , not arbitrary emissions — producing no artificial inflation predictable value behavior continuous alignment between token supply and real backing example — fundshare lifecycle (bnb memecoin index) user deposits 10 bnb vault buys assets (e g , floki , baby doge , pit ) per target weights 0 3% deposit fee (0 03 bnb) goes to treasury 9 97 bnb worth of fundshares minted market trades $ofire on pancakeswap 1% trading tax → 0 8% auto buyback & burn, 0 2% to treasury burn reduces supply; treasury balance grows user redeems shares vault sells assets; applies 0 3% redemption fee returns bnb to user; supply decreases over time tvl increases, supply decreases, nav per share rises — holders benefit from scarcity + performance token economic equilibrium long term equilibrium emerges from three forces nav growth (intrinsic value) — asset performance + reinvested fees supply contraction (scarcity) — buyback & burn tied to trading volume demand expansion (utility) — integrations, reputation, governance, composability the result is a self balancing economy — deflationary when active, stable when quiet, and always tethered to real value summary table — thissofire tokenomics parameter description default adjustable token type bep 20 with tax logic — no mint authority fundvault — no burn mechanisms redemption & buyback — no trading tax auto buyback + treasury 1% yes buyback allocation portion of tax used for burns 80% governance (per vault) treasury allocation portion of tax to treasury 20% governance (per vault) governance rights per vault voting yes yes fee caps deposit/withdraw ≤ 5% default 0 3% yes supply type elastic, deflationary biased — — launch network bnb chain — — the thissofire difference traditional tokens inflate supply to grow — thissofire grows by reducing it every economic actor contributes positively depositors expand tvl traders trigger burns holders benefit from appreciation and scarcity governance shapes fund evolution each fundshare becomes a living, breathing asset — adaptive, deflationary, and self sustaining on bnb chain