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  • What Is Elephant Money?
  • Overview
    • Using The Wiki
  • Ecosystem Tokens
    • ELEPHANT
      • Fees - Detailed
      • Economics
      • Elephant Buyback System
    • TRUNK token (Elephant Money Stable)
      • Deflationary Mechanics
    • SVNN token (Savanna Haus)
      • Details
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    • Elephant Money Futures Vaults
      • Futures Key Features
      • System Wide - Dynamic Rate Scaling
      • Base Rate & The BNB Reserve
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    • Unlimited NFT's
      • Key Features
      • Minting Batches
      • Mint, Rewards & Claim Mechanics
      • Rewards
      • NFT Marketplace
    • TRUMPET
      • TRUMPET - How It Works
      • Trumpet Features
      • TRUMPET Token - Additional Details
      • Token Mechanics - Mint & Redeem
        • TRUNK Buyback Strategy
  • Price Stability Formula
    • Liquidity Management (Stability)
    • ELEPHANT Token Supply Management System (Growth)
    • Token Holder Distribution
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    • Launch & Initial Token Distribution
    • The Graveyard (GY)
      • The Graveyard Rebalanced Event
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      • Buy / Sell via PCS (10% Transcation Fee)
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    • How To Mint & Redeem TRUMPET
  • Navigating The Website
    • ELEPHANT
      • Balance (Overview Tab)
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    • TRUMPET
      • TRUMPET holdings
      • TRUNK Balance (TRUMPET)
      • Get Trumpet (Button)
      • Price (TRUMPET)
      • Supply (TRUMPET)
      • Backed Supply (TRUMPET)
      • Participants (TRUMPET)
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  • Buybacks and burns:
  • TRUMPET distribution
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  1. Ecosystem Tokens
  2. TRUNK token (Elephant Money Stable)

Deflationary Mechanics

Burn 🔥 Baby Burn 🔥

TRUNK is a hyper deflationary token that rewards its holders with a share of the protocol profits in two ways:

Buybacks and burns:

3% APR based on the size of the Elephant Treasury is used to buy back TRUNK off the market and burn 50% of it. This reduces the total supply of TRUNK and increases its scarcity and value. By decreasing the circulating supply of TRUNK, the buybacks and burns create a positive feedback loop that drives up the demand and price of TRUNK. The remaining 50% of the bought back TRUNK is used to mint TRUMPET, which is also burned. This leads to the second way of rewarding TRUNK holders.

TRUMPET distribution

50% of the TRUNK from the buybacks are used to mint TRUMPET and burn it (reducing the overall supply ,while increasing the backing value - see more on the TRUMPET economics). The TRUNK that was used to mint TRUMPET is then distributed pro rata to all TRUMPET holders. This way TRUMPET holders receive a direct and non-inflationary yield from the TRUNK buybacks. By minting TRUMPET, TRUMPET holders are also contributing to the liquidity and stability of the TRUNK market.

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Last updated 1 year ago