Deflationary Mechanics

$PIG is designed with built-in deflationary mechanisms to reduce its total supply of 5,000,000,000 $PIG over time.

Fostering scarcity and supporting long-term value for the Pigmo ecosystem. Two key strategies—Buy Back and Burn and a Lottery System, leverage platform profits and user activity to burn $PIG, ensuring a healthier token economy.

Buy Back and Burn

  • Mechanism: A portion of Pigmo’s platform profits is used to repurchase $PIG from the open market and burn it permanently.

  • Allocation:

    • Profit Share: 20% of monthly platform profits (adjustable based on revenue).

  • Example:

    • Monthly Profit: $50,000

    • Buyback: $10,000 (20%) → ~1,000,000 $PIG at $0.01

    • Burned: 1M $PIG removed from circulation.

  • Timeline: Ongoing, starting 3 months post-TGE (after Initial Capital Raise cliff).

  • Impact: Reduces supply steadily, countering inflation from MiniApp (750M $PIG) and NFT (2.5B $PIG) claims.

Lottery System

  • Mechanism: A $PIG-based lottery allows users to buy entries with $PIG, with a percentage of the entry pool burned and the rest awarded as prizes.

  • Structure:

    • Entry Fee: e.g., 1,000 $PIG per ticket.

    • Pool Split:

      • 50% to prize pool (distributed to winners).

      • 30% burned (~300 $PIG/ticket).

      • 20% to platform (funds operations or marketing).

    • Frequency: Weekly lotteries, integrated with MiniApp and NFT holder perks.

  • Example:

    • 10,000 entries (10M $PIG total).

    • Prize: 5M $PIG (50%).

    • Burned: 3M $PIG (30%).

    • Platform: 2M $PIG (20%).

  • NFT Bonus: Holders get free or discounted entries, boosting participation.

  • Impact: Burns $PIG with every lottery, sinking tokens spent in-game.

Projected Burn Rate

  • Buy Back: ~5-10M $PIG/month (assuming $25K-$50K monthly profits at $0.01-$0.02 $PIG).

  • Lottery: ~1-5M $PIG/week (assuming 3,000-15,000 entries).

  • Annual Estimate: 72M-180M $PIG burned/year (~1.4%-3.6% of supply), scalable with platform growth.

Why Deflationary?

  • Stability: Offsets 1.327B $PIG entering circulation by Day 45 (MiniApp + NFT claims).

  • Value: Reduces supply, enhancing $PIG scarcity as Pigmo scales (11 games, 5M impressions).

  • Engagement: Lottery incentivizes $PIG spending, amplifying burns via user activity.

Transparency

  • Burns are executed via Solana’s SPL Token Program and verified on Solana Explorer, ensuring trust and visibility.

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