ApeSwap’s goal is for BANANA to eventually become a deflationary token. In other words, the rate at which BANANA leaves circulation will be higher than the rate at which it’s created. ApeSwap has implemented several mechanics to regularly burn BANANA to manage the token’s inflation.
Quarterly DEX Buyback & Burn
Of all DEX trading fees earned by ApeSwap, 50% are used to buy back and burn BANANA on a quarterly basis. This can also be viewed as a kind of revenue share for all BANANA holders, as it increases the price for those who are holding BANANA.
Weekly Manual Burn
Of the 11 BANANA emitted per block, a minimum of 0.3 are dedicated to manual BANANA burns that we perform weekly every Thursday (aka #BURNSDAY). Results of this burn are announced via Twitter, Discord, and Telegram.
Weekly Protocol Burn
Along with the fixed manual burn, the weekly burn includes all other protocol burns that occur as a result of our normal operations and those of our burn partners. This is a variable amount that we include in our #BURNSDAY announcement on our social media channels.
Lending Network Burn
ApeSwap collects fees from the ApeSwap Lending Network powered by Ola Finance. These fees are used as follows:
Our Business Development team is always looking for more opportunities to partner with projects that would like to include burn mechanics - if you’re interested in learning more, visit the Partnerships page for more information.