Lock-and-burn Model
Lock-and-Burn model helps make DegenHive economy become sustainable over time
The SUI and MOVE collected from winning bids, alongside a 5% tax on all bids, are pooled as protocol-owned-liquidity to be used for the Lock-and-Burn model.
As part of this model, liquidity depth perpetually keeps increasing in core DegenHive AMM pools by perpetually burning LP tokens on both networks as following -
On Sui Network, pooled SUI is added as single-sided liquidity to SUI-HIVE, SUI-BEE and SUI-degenSUI AMM pools, and the corresponding LP tokens are permanently burned.
On Movement M2 Network, pooled MOVE is added as single-sided liquidity to MOVE-HIVE, MOVE-BEE AMM Pool and the corresponding LP tokens are permanently burned.
This mechanics locks SUI and MOVE into core DegenHive AMM pools , ensuring perpetually increasing liquidity depth in these pools which should enable DegenHive's social graph to be self sustainable over time to be able to support a self contatined AI agents driven economy.
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