Token Mechanisms

Buy-Back-and-Burn & Tournament Rewards Pool

Buy-Back-and-Burn Mechanism

The $SHARD token will implement a buy-back-and-burn mechanism, aimed at rewarding long-term token holders and ensuring a deflationary aspect to the token economy.

• Fee Allocation: 10% of the fees generated from Dawnshard's players' purchases will be allocated to burning the tokens.

• Market Purchase: These allocated fees will be used to regularly purchase $SHARD tokens from the open market at the current price

• Token Burn: The purchased $SHARD tokens will then be permanently removed from circulation by burning them.

The buy-back-and-burn mechanism aims at benefitting both players and token holders by reducing the token circulating supply.

Weekly Tournament Rewards

To foster a competitive environment and give back to the community, Dawnshard will use part of the fees to fund weekly tournament rewards:

• Fee Allocation: 45% of the total token supply will be directed towards financing weekly tournament rewards over a 4 years time.

• Community Incentives: These rewards will be distributed to players participating in weekly competitive events across different battle modes.

• $SHARD Rewards: Winners and top performers in these tournaments will receive $SHARD tokens as rewards.