Tokenomics: A tax and a supply designed to generate a maximum Buy Back and Burn reserve to achieve a high market cap.

Taxes

Taxes for the benefit of the token

On 8% of taxes, 7.2% is allocated to Buy Back and Burn!

The tax will decrease upon reaching different marketcap levels, then remain at 4% beyond $50 million marketcap (MC).

Buy tax

8%

• 7% at 1M MC
• 6% at 5M MC
• 5% at 10M MC
• 4% at 50M MC

Sell tax

8%

• 7% at 1M MC
• 6% at 5M MC
• 5% at 10M MC
• 4% at 50M MC

Transfer tax

4%

• 3.5% at 1M MC
• 3% at 5M MC
• 2.5% at 10M MC
• 2% at 50M MC

Use

7,2%

• 7,2% Buy Back and Burn !
• 0,7% marketing
• 0,1% team

At 50M MC: 3.6% Buy Back and Burn, 0.35% marketing, 0.05% team

The token contract allows for a maximum tax of 8%. This tax will be reduced as certain market cap milestones are reached, but it will not be increased if the market cap falls below those milestones.

A 7.2% tax dedicated to Buy Back and Burn is an extremely powerful lever to create a ratchet effect on the token's price. Indeed, the tokens "burned" by the BBB can never be sold again and therefore can no longer push the token's price down.

No tokens are reserved for the token's creators during the presale. The team is compensated in BNB with 0.1% of transactions, then 0.05% of transactions at the final market cap milestone. With this compensation model, there is no risk that the team will sell a large amount of tokens in the future.

To understand how we hope to achieve such price evolution, it is useful to study the price changes typically observed with other tokenomics.

It is clear that the 1 to 2% buy back and burn tax doesn’t significantly impact the market compared to tokens without a BBB tax.

This is because a tax as low as 1 to 2% for BBB doesn’t carry enough weight compared to the natural fluctuations of the token price. Even worse, BBB is often applied during price increases, which further drives up the price but also amplifies the fall when the market turns around!
Everyone knows that many people buy at the launch of a token and quickly sell off afterward. This simplistic application of BBB only encourages this behavior, reinforcing pump and dump cycles.

Burning Cat addresses this issue through several mechanisms:

• A reserve of tokens that helps mitigate sudden price increases, such as during the token launch, while also growing the BNB reserve for Buy Back and Burn.
• The sale of tokens collected from the tax only during price increase phases.
• An 8% tax at launch to build a substantial BBB reserve relative to the market cap, providing a real impact on the price.
• Buy Back and Burn will be executed only in the event of a price drop to support the price, rather than fueling unsustainable hype over time.

This approach reassures new buyers with sustainable price increases and a substantial BBB reserve that will help limit price drops. Once the number of token holders and market cap have grown significantly, controlled price fluctuations and volume will allow the Buy Back and Burn tax to be lowered, while maintaining the ability to support a healthy and sustainable price increase.

The Burning Cat token contract ensures that the token reserve can only be used to generate a reserve for Buy Back and Burn. It cannot be withdrawn by the team under any circumstances, not even for marketing purposes. Therefore, the sales of these tokens will only be made to mitigate price increases and later support the token price through Buy Back and Burn.

With this tokenomics and the marketing boost from the high-quality videos planned for Burning Cat, we aim to burn a significant amount of tokens.

As the trading volume increases with the growth of token holders, the tax will help maintain a token reserve for future Buy Back and Burns.

Our goal: to reach a market cap of 1 billion dollars!

Keep in mind that BurningCat focuses token sales from the tax during price increase phases. So if you notice a large sale during an upward trend, check if it corresponds to a sale from the token reserve to fill the BNB reserve for Buy Back and Burn, which is a positive sign for the future.

As a reminder, here is the simplified growth plan to help you better understand the tokenomics of Burning Cat: