# Deflationary Features

The Trloop token ecosystem employs multiple deflationary mechanisms to create scarcity and maintain token value over time. Even though the platform’s soft currency, **Experience Points (XP)**, is primarily used for in-app purchases and transactions, the introduction of a ticket-based airdrop system, staking, and token burns ensures that the deflationary effect is sustained. Below is an updated overview of the deflationary aspects of the Trloop token.

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#### 1. **Reward Share and Buyback Mechanism**

A significant part of the platform’s revenue, 20% of platform profits, is allocated to both the Reward Share and Buyback and Burn mechanisms, which play a critical role in driving the deflationary nature of the token economy.

* **Reward Share Mechanism:**
  * **User Incentives:** A portion of the platform's profits is distributed to users who stake Trloop and participate in platform activities. This encourages users to hold Trloop long-term, reducing the circulating supply and supporting token scarcity.
* **Buyback and Burn:**
  * **Mechanism:** A portion of the platform's profits is regularly used to buy back Trloop tokens from the open market and burn them, removing them permanently from circulation.
  * **Flexibility:** The platform can dynamically adjust the amount allocated to buybacks depending on market conditions, increasing the burn rate during times of inflationary pressure.
  * **Deflationary Impact:** As tokens are burned, the total supply of Trloop is reduced, creating scarcity that supports token value growth over time.

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#### 2. **Airdrop System and Deflationary Impact**

With the introduction of the ticket-based airdrop system, users no longer directly swap Experience Points (XP) for Trloop. Instead, the system creates an indirect deflationary impact by using XP to purchase tickets that grant access to Trloop airdrops.

* **Airdrop Mechanics:**
  * Users use XP to purchase tickets that allow them to participate in monthly airdrop distributions of Trloop.
  * The more tickets a user holds, the larger their share of the monthly airdrop.
* **Indirect Deflationary Impact:**
  * A portion of the platform’s revenue generated from these transactions may still be allocated to buyback mechanisms, reducing the supply of Trloop.
  * The XP used for purchasing tickets keeps the platform's activity high, indirectly supporting token scarcity through continuous engagement.
* **Monthly Distribution and Burn:** The system ensures that a portion of the airdrop mechanism remains deflationary by linking a percentage of the proceeds from XP transactions to Trloop buybacks and burns.

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#### 3. **NFT Sales and Fees with a Deflationary Effect**

* **NFT Market Activity:**
  * **Minting and Selling NFTs:** Content creators can mint and sell NFTs on the platform, using Trloop for transactions. A small percentage of each NFT sale is burned, reducing the circulating supply.
* **Marketplace Fees:**
  * **Transaction Fees:** Every transaction within the NFT marketplace includes a fee, a portion of which is directed toward Trloop buybacks and burns, further reducing the supply.

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#### 4. **Game-Based Deflationary Mechanics**

* **Play-to-Earn (P2E) Mechanics:**
  * **Staked Trloop in Games:** In competitive games and tournaments, players can stake Trloop to participate. A portion of the tokens staked in these games is burned, creating a continuous deflationary effect.
* **In-Game Purchases via XP:**
  * Although XP is used for in-game purchases, players indirectly contribute to the deflationary model by engaging with the platform's economy. Trloop earned through these activities can still be subjected to buybacks and burns based on the platform's revenue model.

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#### 5. **Dynamic Deflationary Controls**

* **Market and Platform Adjustments:**
  * **Variable Burn Rates:** The platform maintains flexibility to adjust the percentage of profits allocated to buybacks and burns depending on the market and platform performance. For example, if Trloop supply becomes too high or market demand drops, the buyback rate can be increased to accelerate burning.
* **Event-Driven Deflation:**
  * **Special Events:** During platform events, such as tournaments or creator showcases, the platform can temporarily increase the percentage of transaction fees that are burned, driving up deflationary pressure during high-traffic periods.

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#### **Summary of Deflationary Mechanisms**

* **Reward Share and Buyback:**
  * 20% of platform profits are allocated for rewarding users and burning tokens, reducing supply over time.
  * The buyback mechanism ensures that as platform revenue increases, more tokens are bought back and burned.
* **Airdrop System and XP:**
  * XP, the soft currency, is now used to purchase tickets for airdrop participation. These tickets indirectly support token scarcity by driving platform activity.
  * Revenue from XP transactions is funneled into Trloop buybacks.
* **NFT Sales and Transaction Fees:**
  * A percentage of NFT transactions and fees is burned, creating a steady deflationary flow from marketplace activities.
* **Game-Based Deflation:**
  * Trloop staking in games and tournaments burns a percentage of tokens, reducing supply as users engage with the platform’s P2E model.
* **Dynamic Deflationary Controls:**
  * The platform can adjust the rate of buybacks and burns based on market conditions, maintaining long-term token scarcity.

