Deflationary Mechanisms
CucumberTrade implements deflationary mechanisms to reduce the circulating supply of $CUC over time, creating long-term value for holders.
Burn Sources
1. Protocol Fee Burns (Continuous)
10% of all protocol fees are allocated to buying back $CUC from the open market and permanently removing it from circulation. See Fee Routing & Rewards for the full fee breakdown.
2. Governance Burns
The governance system may vote to execute one-time burns from the treasury. This provides a mechanism for the community to accelerate deflation if desired.
Burn Mechanics
Protocol Fee Collection → CUC Buyback (DEX) → Transfer to Burn Address → Supply Reduced
The buyback/burn allocation (10% of the 15% protocol fee) is used to purchase $CUC from the open market and send it to a burn address, permanently removing tokens from circulation.
Burn Tracking
| Metric | Value |
|---|---|
| Total Burned to Date | Updated on-chain |
| Burn Rate | Dynamic based on protocol activity |
| Remaining Supply | Total Supply − Burned |
All burns are verifiable on-chain. The burn address has no private key, making token recovery impossible.
Impact on Supply
As the protocol grows, the burn rate accelerates:
- Higher arena activity → more fees → more burns
- Governance can vote to increase the burn percentage
- Supply is permanently deflationary (no minting function exists)
The combination of fixed total supply (1,000,000,000 $CUC), vesting unlocks, and continuous burns creates a supply curve that trends downward over the long term.