Buyback & Burn Mechanism

ICO and ERA mint funds will be used for the ecosystem's monthly expenses, which will give the ecosystem around a 1.5 to 2 years run rate with the current expenses and without any additional revenue.

Coniun will raise $X from ERA mint and $Y from the ICO in stable coins, which will be reserved to pay the ecosystem's expenses for the next 1.5 to 2 years. After securing those funds needed for the time period that'll make the company profitable, Coniun'd like the ecosytem's operations to enrich $CONI while saving funds for the treasury to keep the community-first mindset alive. Since Coniun like to position $CONI on top of every operation Coniun does, including its NFT collections, Coniun has designed a buy-back & burn structure that'll let the community make a profit as long as they help Coniun increase brand awareness.

The revenue channels of Coniun after tokenization;

• Revenue from NFT collections’ secondary sales

• Revenue from B2C utilities

• Revenue from B2B utilities

• Revenue from Venture Lab participants’ mints

How does the buy-back & burn mechanism works?

Until either the ecosystem makes $X in revenue or spends $X;

If Coniun didn't make revenue in total equal to the funds raised from ERA's mint or didn't spend that much money on the ecosystem's costs, Coniun will buy-back $CONI with the revenue it did each month and burn them.

After either the company makes $X in revenue or spends $X;

Coniun will use its profit in the following months to buy-back $CONI to burn or send to the treasury.

If there is no profit, there is no buy-back for that month.

If there is profit;

The profit from NFT collections made in that month will be used for buy-back $CONI and burn them.

The profit from utilities and B2B services made in that month will be used for buy-back, but tokens will go to the treasury.

Let's have a look at a few examples

Case 1:

Let's say Coniun raised $500K from the ERA mint and made $500K in revenue in the first 4 months after the release of $CONI. Coniun will buy-back $500K worth of $CONI and burn them all in the first 4 months. If Coniun makes $80K in the next month and spends $50K, there would be a $30K profit to be used on buy-back. Coniun will burn those tokens or send them to the treasury depending on the revenue from NFT collections or utilities. If $60K of the $80K comes from the NFT collections (75% of the total revenue), $22.5K worth of $CONI will be burned, and $7.5K worth of $CONI will be sent to the treasury.

Case 2:

Let's say Coniun raised $500K from the ERA mint and made $500K in revenue in the first 4 months after the release of $CONI. Coniun will buy-back $500K worth of $CONI and burn them all in the first 4 months. If Coniun makes $30K in the next month and spends $50K, there won't be a buy-back in that month since the company didn't make a profit. But if Coniun makes a profit in the following months, there will be buy-backs, as explained in Case 1.

What do all these mean?

After 8 months of experience running a utility NFT token (Coniun Pass), it is made sure the community plays a decent role in the success of a web3 business. If the community you built acts like they have purchased a service from you and doesn't feel responsible for the company's growth, it's hard to scale it since traditional marketing channels don't always work on web3.

However, projects can't just ask their community to help them spread the word. They should encourage their community by creating incentives. Coniun's buy-back and burn mechanism aims to encourage our community to share why they invested in the Coniun ecosystem with others.