Supply / Demand Mechanics

To keep a healthy and balanced supply burn ratio, we need to be sure that we are releasing enough tokens to cover the burning need. That’s why releasing an initially bigger amount of token into the ecosystem so that a high burn ratio will keep the price stable and later on decrease the speed of the emissions. When we compare the Supply Emission with Burn Over Time, we will observe the graph below.

Supply Release vs Burn Over Time

Estimated $Equinox Burning

First thing first, the main burning incentive, which is Evolution Role Transformation, will burn around ~3.6Million $EQUINOX tokens, only for transactions. You can see the details below. Burning on Transformation:

Evolution	Pref. Coef	Estimated Burning	Weighted AVG
Probably Evolution (50% Success)	2.42	3,174,683	3,052,725
Supposedly Evolution (80% Success)	3.86	2,976,265	3,052,725

Worst case scenario, where all NFTs are staked and tokens are rewarded accordingly; with the average evolution demand, we will be able to burn 35% percent of the whole circulated ecosystem supply.

Although a scenario in which all NFTs are transformed into supreme roles is almost impossible, It is important to have a realized burn ratio as a benchmark. We cross-check this value and we do expect to see between 30% to 35% within the first 45 days after the mint. There are 2 reasons for this ratio and timeframe,

• High burning ratio aims to attract newcomers,

• The time frame, almost a month and so, is a great time to restart the hype of the project which got loose after the mint.

As time passes, the balance will equilibrate and as is expected, the Estimated Amount of Burning $EQUINOX ratio will decrease, since the supply is increasing.

Supply vs Burn Over Time

To review supply emissions please check the section, Yearly Allocation of Ecosystem / Reward Pools. That the same Red area in the above graph, represents the number of tokens that will be burned over the 5 years, period. The team could apply any deflation mechanics previously mentioned in the section, Deflationary Mechanisms. The total amount that must be burned each year for sustainable $EQUINOX value appreciation is described below. Within each year the total burning token amount will be allocated a linear and stable monthly amount. Yearly burning amounts are decided as below: Burning:

	Year #1	Year #2	Year #3	Year #4	Year #5
Estimated Burn	31,678,594	25,790,040	23,589,609	19,678,389	17,509,039

Team has all the rights and tools to initiate any burning mechanics to keep the supply emission and the burn over time ratio as planned. As long as daily, weekly, and monthly events are organized within the monthly burning rate, the team is free to send tokens to the locked wallet to be burned.