As we mentioned in introduce post, we would like to explain the burning YRD and YR a bit more. Why it is important, what value to users it give, when it is worth to do it and so on.
In Yellow Finance we will have two types of burning:
- Performed by the user
When the user will want to burn mechanism there will be also two ways to do it, by sending it to burn address manually from his wallet or use the option on the website. When it happened our system will catch that and in next burning payout the user will get corresponding number of tokens or stable coin worth same to his wallet without need to do any more actions. At the start user will receive corresponding USD amount in stable coin, the underlaying coins option will be available later. The burning payout will be on the end of each week with the price from the moment of execution. At the begging, when the project will develop further we will shorten this time even to each day. Minimum amount to burn will be around 10$ in every vault so in starting YRD vault it would be ~100 YRD.
Why it could not be immediately ?
Because of the assumptions of the project. The coins will work as hard as possible not only lay in wallets, due to that and locking time we will not be able to fill the request immediately.
2. Performed by the project
On the end of each week the team will collect all rewards from staking/farming and use part of them to burn vault tokens. At the beginning project will use 50% of the rewards to burn vault tokens and 10% to burn main governance YR token which should increase value of them. The rest will stay in and work for vault.