# 5. Dynamic Burn Mechanism (24 months):

To achieve a token price of $1 or better by the end of 24 months, with a final circulating supply of 20 million tokens and an initial daily volume of $100,000, we will need to design a tokenomics model based on the following assumptions and calculations.

* Assumptions:
  * Initial Token Price: $0.20
  * Initial Circulating Supply: 70 billion tokens (since 30 billion tokens are staked and locked out of circulation)
  * Target Circulating Supply: 20 million tokens by the end of 24 months
  * Daily Trading Volume: $100,000&#x20;
  * Burn Mechanism: A percentage of daily transactions will be burned to reduce the circulating supply.
  * Volume Growth: To sustain the burn, we assume a 5% monthly growth in trading volume due to marketing, utility development, and staking incentives.
* Path to Achieve $1 Token Price:

  We will focus on two mechanisms:

  * Token Burn: A burn mechanism that decreases the circulating supply significantly over 24 months.
  * Increased Demand and Utility: Growth in trading volume will help maintain the price as the circulating supply decreases
* Formula and Approach:
  * Market Cap Formula:
    * Market Cap = Circulating Supply × Token Price&#x20;
    * To reach a $1 price, the market cap needs to increase significantly while the circulating supply is drastically reduced.
  * Burn Mechanism:
    * The goal is to burn tokens over 24 months to reduce the circulating supply to 20 million.\\
    * We’ll need a progressive burn rate that accelerates over time to maintain price momentum.
  * Price Estimation:
    * As the circulating supply decreases and the burn accelerates, the price will rise in response to scarcity, assuming demand is constant or increasing.&#x20;
* Estimated Monthly Burn and Circulating Supply Reduction: Here’s an estimated token burn schedule with a 5% increase in trading volume per month and a burn rate applied progressively to reach the goal of 20 million tokens in circulation by the end of 24 months.

<figure><img src="https://2001333274-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F9LsTeFeJzNbKWzrtfhl9%2Fuploads%2FnirsKmPtvmlMaPrPpBX7%2Fimage.png?alt=media&#x26;token=c102f624-390d-457b-b02c-03157c62bab5" alt=""><figcaption></figcaption></figure>

* Analysis of Burn and Price Growth:
  * Circulating Supply Reduction: Through an aggressive burn rate that progressively increases from 3% to 7%, we are able to reduce the circulating supply from 70 billion to 20 million over 24 months.
  * Token Price: As the circulating supply reduces, the token price increases in response. By the 24th month, the price reaches $1 due to the scarcity created by the burn.
  * Market Cap: At the end of 24 months, the market cap stabilizes at around $20 million, which is proportional to the circulating supply and the $1 token price.
