Esper Finance
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  • Getting Started
    • πŸ”Ž | Introduction
  • Esper Finance
    • πŸ€– | AMM
      • Dual-liquidity Types
      • Dynamic Directional Fees
    • 🚜 | Yield Farming
      • Esper LP NFT (spNFTs)
      • Nitro Pools
    • πŸš€ | Launchpad
    • πŸ”Œ | xESPER Plugins
      • Dividends
      • Yield Booster
      • Launchpad
      • Community Plugins
    • 🀝🏼 | Esper Brotherhood
  • Tokenomics
    • πŸͺ™ | ESPER Token
    • πŸ”’ | xESPER Token
      • Conversion - Redeeming
    • πŸ“Š | Token Distribution
    • πŸ’° | Protocol Revenue
    • πŸ”₯ | Deflationary Mechanism
  • Resources
    • πŸ“‹ | Terms of Service
    • πŸ›‘οΈβ”ƒAudits
    • πŸ“ | Contracts
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  • Buyback and Burn
  • xESPER Redeem
  • xESPER Deallocation
  1. Tokenomics

πŸ”₯ | Deflationary Mechanism

ESPER deflationary mechanism

PreviousπŸ’° | Protocol RevenueNextπŸ“‹ | Terms of Service

Last updated 9 months ago

In addition to a hard cap on ESPER, Esper Finance has implemented deflationary measures to effectively reduce the overall token supply.

Buyback and Burn

A portion of protocol revenues is set aside for the buyback and burn of ESPER tokens, generating constant buying pressure on the token.

xESPER Redeem

During the , if the vesting duration is not set to the maximum, the xESPER:ESPER ratio will be adjusted to a value below 1:1, ranging down to 1:0.5 as the minimum. Any excess ESPER obtained during this process will be automatically burned.

To illustrate this process, let's consider an example:

If a user decides to redeem 1000 xESPER with the minimum vesting duration of 15 days, they will receive a ratio of 1:0.5, yielding 500 ESPER.

Consequently, a total of 1000 - 500 = 500 ESPER will be burned throughout the redemption process.

xESPER Deallocation

When users deallocate xESPER from a , a deallocation tax is typically set at 0.5%. This tax can vary across contracts. Moreover, the corresponding amount of ESPER will be automatically burned as part of the deallocation process.

Plugin
redemption of xESPER to ESPER