TWT Burn Mechanism
Deflationary tokenomics through protocol usage🔥 Active
LetterFi implements a deflationary mechanism where a portion of every transaction automatically contributes to TWT token burns. This creates sustainable value appreciation driven by actual platform usage.
How It Works
Automatic Accumulation
Every action on LetterFi contributes TWT to our dedicated Burn Pool:
| Action | Burn Contribution | Example |
|---|---|---|
| Letter NFT Mint | 6% | 1 TWT mint → 0.06 TWT to burn pool |
| Word NFT Crafting | 20% | Word NFT Craft fee 1 TWT → 0.2 TWT to burn pool |
| Hero NFT Creation | Coming in Season 2 | TBA |
All contributions accumulate in our transparent burn wallet throughout the week.
Weekly Burn Ritual
Every Wednesday we execute the accumulated burn:
- Accumulation Phase (Wed-Wed): TWT collects in burn wallet
- Execution (Wednesday): Single burn transaction executed
- Announcement (Wednesday): Results posted with on-chain proof
- Verification (Ongoing): Community can verify via BSCScan
This creates a recurring event that builds anticipation and demonstrates real protocol usage.
Burn Pool Wallet
Burn Pool Wallet:
Loading...
Why Deflationary?
True Burn Mechanism
LetterFi uses TWT's native burn() function, which:
- Permanently destroys tokens - sent to 0x000...000
- Reduces total supply - decreases circulating supply
- 100% verifiable - all burns visible on BSCScan
- Irreversible - burned tokens cannot be recovered
This is not a "lock" or "transfer to dead wallet" - it's a true supply reduction.
Historical Burns
No burns recorded yet.