Technical Appendix

Economic Model

A deep dive into the burn mechanics, treasury flows and growth projections that power the MEGA BONK ecosystem.

~195K

Total Daily Burn

~5.8M

Monthly Burn

~66M

Annual Burn

1B

Initial Supply

PvP Match Economy

01

Every 1v1 match distributes the combined pool across three destinations: winner reward, protocol burn, and treasury.

Match Pool Formula

Pool500 + 500 = 1,000
Winner 80%800 tokens
Burn 10%100 tokens
Treasury 10%100 tokens
80%

Winner

800 tokens

10%

Burn

100 tokens

10%

Treasury

100 tokens

Daily PvP Burn

0 tokens

1,000 matches x 100 tokens burn = 100,000 tokens/day

NFT Mint Economy

02

Each NFT minted at 5,000 tokens permanently burns 40% and allocates 60% to the protocol treasury, creating a direct link between NFT demand and supply reduction.

Mint Cost

5,000

tokens per NFT

Burn (40%)2,000
Treasury (60%)720

Burn 40%

2,000

tokens burned per mint

1,000 mints x 2,000

= 2,000,000 / month

Daily NFT Burn

0 tokens

1,000 mints/month x 2,000 burn = 2M/month = ~67,000 tokens/day

Trading Fee Burn

03

0.15% of every token transaction is automatically and permanently burned. Based on 10M daily trading volume, this generates 15,000 tokens burned per day.

Calculation

Daily Volume10,000,000
Burn Rate0.15%
Result15,000 tokens

Daily Trading Burn

0 tokens

10,000,000 x 0.15% = 15,000 tokens/day

Treasury Income (Trading)

10,000,000 x 0.5% = 50,000/day

Total Ecosystem Burn

04

Three burn sources combine into a powerful deflationary engine. As ecosystem activity grows, total burn accelerates.

PvP Burn (1,000 matches/day)0 tokens
NFT Burn (1,000 mints/month)0 tokens
Trading Burn (10M vol/day)0 tokens

Total Daily Burn

~0

tokens burned per day

Monthly Burn

~5,460,000

Annual Burn

~66,430,000

Long-Term Supply Impact

05

At 182,000 tokens burned per day, the model projects a significant permanent reduction in circulating supply over time.

0

Initial Supply

0

Burned in 2 Years

0

Remaining Supply

Supply Projection — 2 Years

85.77% remaining14.23% burned

182,000 x 730 days = 132,860,000 tokens burned

Growth Scenario Simulation

06

Burn projections under three adoption levels: conservative, moderate and high. All values represent daily burn estimates.

Conservative
PvP matches/day500
NFT mints/month500
Trading volume/day5M

Estimated daily burn

~0

tokens/day

Base
Moderate
PvP matches/day1,000
NFT mints/month1,000
Trading volume/day10M

Estimated daily burn

~0

tokens/day

High Adoption
PvP matches/day5,000
NFT mints/month3,000
Trading volume/day50M

Estimated daily burn

~0

tokens/day

Treasury Growth Model

07

Treasury income flows from three sources simultaneously. These funds support game development, marketing, partnerships and community incentives.

PvP

10% per match pool

100,000/day

NFT

60% of every mint

100,000/day

Trading

0.5% of daily volume

50,000/day

Estimated Daily Treasury

~0

tokens per day

Economic Sustainability

08

The MEGA BONK ecosystem balances three forces: player rewards, token burn and protocol treasury. Real gameplay drives real economic activity, creating a self-reinforcing loop.

Player Rewards

Winners earn 80% of each pool, rewarding skill and sustaining engagement.

Token Burn

Every ecosystem action permanently reduces supply, creating progressive scarcity.

Treasury Growth

Treasury funds continuous expansion, marketing, partnerships and community incentives.

GameplayBurn + TreasuryGrowthMore PlayersMore Burn

As ecosystem activity increases, the economic engine becomes progressively stronger.