Tokens in the IC ecosystem face inflation risks due to uncontrolled circulation, potentially diluting their value over time. MSQ.Burn counters this by introducing a unique DeFi solution with deflationary mechanics designed for IC projects.

If you have an IC token with a fixed supply, deflation can potentially increase its price. For inflationary tokens, such as SNS tokens, deflation is even more beneficial. By reducing the total supply by even a few percent, your token’s price could see an immediate boost.

By incentivizing users to burn tokens, MSQ.Burn enhances IC tokens value and ensures ecosystem sustainability.

This example shows how MSQ.Burn mechanics can meet your project’s needs. With various customizable settings in the Airdrop Machine, you can tailor a deflationary strategy that maximizes your token’s value.

More about our instruments below.

Mechanics overview:

The full explanation of mechanics could be found in the article for users (link), but let’s highlight the main aspects below.

Part 1. Airdrop Machine

The Airdrop Machine is key for IC projects using MSQ.Burn. Use it to set up airdrops for Mining Pool and Bonfire participants, increasing interest in your token. These airdrops will also drive support for your project to be chosen for Bonfire, promoting token deflation.

Settings for creating the ideal airdrop include:

• Total Tokens: minimum equivalent of $100

• Duration: 1 hour to 1 month

• Start Trigger: Time or Event

  • Time: Schedule to start within 1 hour to 1 month.

  • Event: Trigger when either a set amount of tokens is pledged, or a token is chosen for burning in Bonfire.

By adjusting these settings, you can, for example, announce that an airdrop will activate if your token is chosen for Bonfire. Or, if already chosen, start an airdrop once a certain number of tokens are pledged in Bonfire.

Note that block timing can’t be changed: airdrop happens on an hourly basis.

Example: for a 24,000 tokens airdrop during 24 hours, 1,000 tokens are distributed hourly: 330 to the Classic Pool, 330 to the High-Risk Pool, 330 to Bonfire, and 10 to MSQ Team.

Part 2. Mining Pools

Mining Pools offer an engaging way for users to earn by burning $ICP and thus supporting its deflation. The main token that users always earn there is $BURN, but with an active airdrop, pool members also receive your token.

Also, hourly airdrops include tokens pledged to Bonfire last week, adding one more incentive for miners.

Note: Not all $ICP pledged in the Pools are actually burnt, 50% of them are redistributed to the Bonfire Prize Fund.

Part 3. Bonfire

Bonfire rewards users for burning IC ecosystem tokens, offering both a chance to win the Prize Fund and hourly airdrops based on their shares in Bonfire.

Note: Not all tokens pledged in Bonfire are fully burnt, 50% of them are redistributed to the Mining Pools.

The Prize Fund (sourced from 50% of $ICP burnt in Mining Pools) is drawn every Sunday at 15:00, with one winner taking the entire amount. Winning chances increase with the amount of tokens pledged.

$BURN is always available for burning, but each week participants vote to select an additional token eligible for burning in the following week. Projects can encourage their community to participate in Bonfire and vote for their token by initiating or promising an airdrop if chosen. The winning token is selected randomly, with more votes increasing its chances. And remember, only burning $BURN allows users to vote.

If your token isn’t yet in Bonfire voting, tag us on X — @msqwallet — to request its addition. Each week we run a poll on X, allowing the community to choose two new tokens to add for the next week Bonfire. We can include your token in our weekly poll on X, and if your token is among the two most-voted, it will be added as an option to be voted in Bonfire.

As a conclusion

MSQ.Burn creates a deflationary loop that enhances value, growth, and engagement for IC projects. Here’s a summary to leverage MSQ.Burn:

#BURN2EARN is more than just a hashtag — it’s your invitation to experience MSQ.Burn’s benefits through controlled deflation, community growth, and stronger token value.

Join MSQ.Burn: burn.msq.tech

Follow us on X: x.com/msqwallet

Join our Telegram community: t.me/homeofmsq

Unlike physical currency, digital assets like cryptocurrencies don't degrade over time, leading to oversaturation and inflation. Powered by $BURN, MSQ.Burn offers a DeFi solution that rewards users for burning tokens, benefiting both you and the IC ecosystem. It's a win-win for users and projects alike!

The mechanics of MSQ.Burn perfectly works together:

• $BURN Mining Pools - Earn by burning $ICP in dedicated pools.

• Bonfire - Get a chance to win the Prize Fund by burning $BURN and other IC ecosystem tokens.

• Airdrop Machine - Receive airdrops from the IC project by participating in Mining Pools and Bonfire.

Mechanics

Part 1. $BURN Mining Pools

Initially, $BURN was created as an on-chain mining memecoin, but the MSQ Team decided to take a more purposeful direction by contributing to the IC ecosystem's deflation.

You can mine $BURN in Mining Pools. Here's an overview of how $BURN is crafted:

• Mining in Pools: There are two pools: the Classic Pool and the High-Risk Pool. Each $BURN block, created every 2 minutes, distributes 50% of the reward to the Classic Pool and the other 50% to the High-Risk Pool. Pool rules are explained on the picture below.

• Remember, this isn't the only reward for mining, as more details will be revealed in the 'Bonfire' and 'Airdrop Machine' sections.

• Note: Not all $ICP pledged in the Pools are actually burnt, 50% of them are redistributed to the Bonfire Prize Fund.

• Emission and Halvings: $BURN has a total supply of approximately 10.3 million tokens, but it will be reducing over time because of $BURN burnt in Bonfire. It follows a weekly halving schedule. Additionally, $BURN is programmed for tail emission, and there'll be 1 token per day minted starting in January 2025. This mechanism helps control inflation and contributes to the token's deflationary nature.

Part 2. Bonfire

The Bonfire rewards you for burning $BURN and other IC Ecosystem tokens. Just burn some tokens and you'll get a chance to win the Prize Fund + some airdropped tokens.

Here's how Bonfire works:

• Burning and redistribution: The more tokens you burn, the greater your chances of winning the Bonfire Prize Fund, and the more impact on deflating the token. Note that not all tokens pledged in Bonfire are actually burnt; 50% of them are redistributed to Classic and High-Risk Pool members according to pool rules (but with 1-hour blocks, not 2-minute blocks), providing them with additional rewards on top of the mined tokens.

• Bonfire Prize Fund: The Prize Fund is formed of 50% of $ICP tokens pledged in the Mining Pools. The draw happens once a week, every Sunday at 15:00 UTC. The total amount of $ICP received in the Prize Fund is divided into two groups: 85% is drawn during the week it's received, while 15% carries over to the next week. This model is crafted with the goal of making the Prize Fund bigger and bigger each week.

• The number of winners depends on the amount of ICP in the Prize Fund:

  • 1 winner: Up to 1,000 $ICP goes entirely to the one winner.

  • 2 winners: From 1,000 to 2,000 $ICP, the first 1,000 goes to the first winner, and the rest is split between the first and second winners. For example, if the prize is 1,500 $ICP: 1,250 goes to the first winner, and 250 goes to the second.

  • 3 winners: From 2,000 to 3,000 $ICP, the first 1,000 goes to the first winner, the second 1,000 is split between the first and second, and the rest is divided among the first, second, and third winners. For example, if the prize is 2,600 $ICP: 1,700 goes to the first winner, 700 to the second, and 200 to the third.

• Voting: Every week, Bonfire participants have the chance to vote on which token will be burnt alongside $BURN the following week. You can vote once you've pledged some $BURN. The more votes a token receives, the higher the chance it will be automatically chosen to be burnt and become more deflationary.

In essence, Bonfire is a vital part of MSQ.Burn's strategy to ensure long-term sustainability, present a large $ICP reward to a lucky winner, reward $BURN miners, and help maintain deflationary pressure on the IC Ecosystem tokens.

Part 3. Airdrop Machine

Airdrop Machine is designed to reward $BURN miners and Bonfire participants with tokens airdropped by the IC Ecosystem projects.

Here's a summary of how it works:

• IC Ecosystem projects can add their tokens to the Airdrop Machine and choose when to start their airdrop. One option is to begin the airdrop only if a specific token is selected for burning in Bonfire Voting or if a certain amount is pledged in the Bonfire. Alternatively, projects can start distributing tokens immediately. Some tokens will be allocated to $BURN mining pools according to pool rules, while others will go to Bonfire participants (with hourly blocks instead of 2-minute blocks), distributed according to their share.

All available airdrops are already highlighted at the Pools and Bonfire pages, but we recommend you also to check 'Airdrops' tab to see all the planned and upcoming airdrops.

How it all works together?

We call it #BURN2EARN - you need to burn something to get something else.

#BURN2EARN example:

$BURN price: $0.10 per $BURN**$EXE price:** $0.50 per $EXE**$ICP price:** $7.20 per $ICPMining reward: 8 $BURN per 2-minute blockHigh-Risk Pool: 3 participants who pledged 10 $ICP eachBonfire Redistributions: 80 $BURN per hourly blockAirdrop Machine airdrops: 23.80 $EXE per hourly block

You've done the math and decided to pledge 10 $ICP to join the High-Risk Mining Pool for the next 24 hours, and currently holding a 25% share. This gives you a chance to win half of the block reward in about 180 out of the 720 blocks mined in a day, as long as your share stays the same. Plus, tokens in the Bonfire and Airdrop Machine are redistributed every hour, meaning you're likely to receive 6 half-block rewards out of 24 blocks in each case - around 6 half-blocks of redistributed $BURN and 6 half-blocks of airdropped $EXE.

After 24 hours, you received:

• 720 $BURN from 180 half-block mining rewards

• 240 $BURN from 6 half-block Bonfire redistributions

• 71.4 $EXE from 6 half-block Airdrop Machine airdrops

With $BURN and $EXE at current prices, that adds up to $131.7 USD, roughly equal to 18.30 $ICP - already a profitable outcome!

Why not try your luck even more? You could withdraw your 720 $BURN and 71.4 $EXE to your wallet and pledge 240 $BURN to the Bonfire, entering for a chance to win the Bonfire Prize Fund! By pledging, you also get to vote on which token should be burnt in next week's Bonfire. Let's say you got $DCD when it was low, and now you're ready to burn some. You cast your vote for $DCD and wait for the draw on Sunday at 15:00 UTC. Additionally, once you've pledged some $BURN in Bonfire, you receive airdrops from the Airdrop Machine based on your share in Bonfire, allowing you to keep earning!

Summary: You've mined, earned, and gained a shot at the Prize Fund + voted on the next token to be burnt and still have some airdrops to receive. In this profitable and thrilling journey, you're not only boosting your own rewards but also helping to make the IC ecosystem more deflationary and dynamic!

Join MSQ.Burn: burn.msq.tech

Follow us on X: x.com/msqwallet

Join our Telegram community: t.me/homeofmsq