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Deflationary Mechanisms
A share of the Platform Earnings is dedicated to buying back and burning BLS in order to apply continuous buying pressure to it.
When converting xBLS to BLS, if the vesting duration isn't the maximum, the xBLS:BLS ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the BLS excesses will be automatically burned.
For instance, if a user redeems 1000 xBLS with the minimal 15 days vesting duration, he will obtain a 1:0.5 ratio, and receive 500 BLS in the end.
That means a total of 1000 - 500 = 500 BLS will be burned during the process.
When deallocating xBLS from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be 0.5%.
The corresponding BLS amount will automatically be burned.
Last modified 8mo ago