# Dynamic Reward and Burn Mechanism for BattleKoin (BKT)

#### **BattleKoin (BKT) – Dynamic Reward & Burn Mechanism**

**BattleKoin (BKT) incorporates a structured reward and burn mechanism** to ensure **token sustainability**, incentivize **active participation**, and maintain **long-term value** within its ecosystem. By dynamically adjusting rewards and integrating a **deflationary burn model**, BattleKoin aims to balance **growth, utility, and scarcity** effectively.

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#### **Dynamic Reward Mechanism**

The **dynamic reward structure** encourages **user engagement** by distributing incentives based on activities such as **staking, transactions, and participation in the Tripara platform**.

**Core Components**

✅ **Transaction Fees Allocation:**\
A small portion of every transaction is allocated as follows:

* **0.3% to the Reward Pool** – Provides continuous incentives for **stakers, liquidity providers, and platform participants**.
* **0.1% to Liquidity Pool** – Enhances **market stability and trading efficiency**.
* **0.1% Burn** – Permanently removes tokens from circulation, ensuring a **scarcity-driven model**.

✅ **Stake-to-Travel Incentives:**\
Users can **stake BKT tokens** to unlock **exclusive travel benefits** on the **Tripara platform**.



✅ **Time-Based Rewards:**\
Reward rates **dynamically adjust** based on ecosystem activity and **Total Value Locked (TVL)** in staking.

* **Higher TVL** → Increases staking incentives to promote continued engagement.
* **Lower TVL** → Activates **adaptive APY adjustments** to attract new participants.

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#### **Burn Mechanism**

The **burn mechanism** ensures **long-term token sustainability** by permanently reducing the supply, reinforcing scarcity, and supporting **value appreciation**.

**Core Components**

✅ **Transaction Burn:**

* **0.1% of every transaction** is **permanently burned**, creating **deflationary pressure** over time.

✅ **Periodic Burn Events:**

* Special burn events occur **based on ecosystem milestones** (e.g., reaching 1 million bookings on **Tripara**), reducing token supply to celebrate growth.

✅ **Adaptive Burn Adjustments:**

* The burn rate **adjusts dynamically** based on market conditions:
  * **If token supply increases too rapidly**, the burn rate **automatically rises** to maintain balance.
  * **During lower market activity**, the burn rate **decreases** to support liquidity and trading stability.
