$ZBCN: Buyback Program 2024
To maintain the deflationary model for $ZBCN and to support its long-term value, Zebec’s DAO plans to reinstate its token buyback program.
Rationale
$ZBCN — a Solana native token — is a central asset within the Zebec Network ecosystem, serving as the foundation for our governance, ZePIN (Zebec Decentralized Physical Infrastructure Network) incentives, Zebec card rewards, and other select uses and incentives within the ecosystem.
While Zebec Network operates as a multi-chain ecosystem, we rely heavily on Solana — with its superior speed, cost efficiency, and high transaction throughput — to handle the bulk of our transaction processing for card products, rewards distribution, and other essential operations.
With heavy use of the Solana blockchain, and its corresponding gas fees in Sol for transactions — the use cases for ZBCN within the ecosystem have decreased. To address this and reinforce ZBCN’s value as a deflationary asset, we are reinstating the ZBCN buyback program to reduce its circulating supply and increase scarcity.
Schedule: Monthly cycle
The buyback program will operate on a monthly cycle, with buybacks conducted at the end of each month based on two main components.
Buyback Parameters: Partner Integrations and Zebec Cards Volume
The monthly buybacks are tied to the Zebec Cards transaction volumes and partnership contracts, based on the following metrics
1.Partner Contributions: For partnerships where projects pay Zebec with their tokens to integrate on our cards, we will buy an equivalent amount of ZBCN from the open market. This ensures both community engagement and consistent reduction in circulating supply.
2.Card Volume: As our card programs grow, we will burn an amount of ZBCN equivalent to the monthly total spend volume on Zebec cards, up to a limit of $500K This aligns with our broader strategy to increase the scarcity of ZBCN as the popularity of Zebec cards expands.
Reporting and Transparency
To ensure full transparency, we will provide a public dashboard that tracks all buyback events in real-time and add these numbers to the regular company results reporting to ensure accountability and clarity for the Zebec community.
Potential Impact
With Zebec cards volumes growing rapidly, up to $500K monthly ZBCN buyback would amount to approximately 1% of the $ZBCN circulating supply, adding up to 10–12% reduction in total circulating supply of $ZBCN on the market .
The Zip-6 proposal outlining the details of the buyback program and its parameters is currently with the Zebec DAO for consultation, consideration and formal vote and is expected to start as early as October 2024.
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Disclaimer: The content of this article is for informational purposes only and is not intended as investment advice or to provide specific financial guidance. Readers are advised to conduct their own research and consult financial experts before making any investment decisions. Review card contract and documents for complete details.
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