Supply Contraction
When OWY holders make a transaction, they pay a fraction of their OWY as a tax, contributing to the reduction of the circulating supply.
Last updated
When OWY holders make a transaction, they pay a fraction of their OWY as a tax, contributing to the reduction of the circulating supply.
Last updated
This page involves detailed calculations designed to manage and control supply reduction in a manner that upholds principles of fairness and operational efficiency.
The formula can be broken down into three main components for clarity: the base value, discounts (based on time and tax accumulation), and a magic number. Additionally, there is a hidden element known as the maximum tax.
Transfer Value = initial or intended amount of OWY tokens to be transferred.
Deflation Rate = the current rate of supply contraction, which varies according to different supply stages as outlined in the Deflation Schedule below.
Applying the stepping approach with maturity stages, the current deflation rate correlates to the stage of OWY total supply.
1
<= 69,000,000.00
6.900%
2
<= 47,610,000.00
4.761%
3
<= 32,850,900.00
3.285%
4
<= 22,667,121.00
2.267%
5
<= 15,640,313.49
1.564%
6
<= 10,791,816.31
1.079%
7
<= 7,446,353.25
0.745%
8
<= 5,137,983.74
0.514%
9
<= 3,545,208.78
0.355%
10
<= 2,446,194.06
0.245%
11
<= 1,687,873.90
0.169%
12
<= 1,164,632.99
0.116%
13
<= 803,596.76
0.080%
14
<=554,481.77
0.069%
15
<= 69
0.000%
The deflation rate starts at 6.9% and gradually decreases to 69% of the previous rate as the total supply moves to the next stage, which is also 69% of the previous stage's supply.
BlockIn = the average Ethereum block number at which the transaction owner originally acquired their OWY tokens.
VWAB (Volume-Weighted Average Block) = the average BlockIn of all OWY holders.
TaxAccumulation_individual = The total amount of tax that the owner of the transaction has accumulated through their payments.
TaxAccumulation_total =The total amount of tax paid by all OWY holders since the inception of the system.
To intensify supply contraction, OWY applies a 69% tax increase exclusively to senders who's BlockIn exceeds VWAB.
If no discount value exists—indicating that the OWY tokens are newly received and immediately transferred to another account—then no discounts will be applied, and the magic number will be enforced.
When an individual makes a short-term spending decision without any accumulated saving value in their tokens, the formula shown in 2.1 Time Accumulation Discount multiplied by the magic number could result in an excessively high tax amount. To address this, we impose a maximum tax limit:
Regardless of the tax amount calculated using the main formula, if it exceeds this ceiling value, the user will only be charged up to this maximum amount.
Once the Final Phase begins and the deflation mechanism ends, the OWY token will transition to a regular ERC-20 token with no tax. Users who wish to permanently burn additional OWY can still send their tokens to the zero address. This manual burn process has no limit.