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description: Driving Scarcity, Value, and Long-Term Sustainability
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# Buyback and Burn Mechanism

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Yin DAO uses a proven strategy to make **$YIN tokens more scarce and valuable over time**. We dedicate **10% of ALL profits** (from films, real estate, energy, etc.) to regularly buy back $YIN tokens and either destroy them or save them strategically. Here’s how it works and why it benefits you:

**The Simple Plan:**

| **Phase**                               | **What Happens**                                                                                                               | **Goal Achieved**                                                                                                                                                   |
| --------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Phase 1: Scarcity Boost (Now)**       | 10% of profits **buys $YIN from the market** and **permanently burns (destroys)** it.                                          | **Reduces total supply** from 3 billion → 2 billion tokens. Less supply = more potential value per token.                                                           |
| **Phase 2: Strategic Reserve (Future)** | Once supply hits 2 billion, 10% of profits **still buys $YIN**, but tokens go to the **DAO Treasury** instead of being burned. | Treasury can **strategically use** these tokens (e.g., fund partnerships, add liquidity, or do future burns) to grow the ecosystem **without creating new tokens**. |

**Key Features:**

* **💰 Funded by Profits:** 10% of _everything_ Yin DAO earns fuels this program.
* **⏱️ Predictable & Twice Yearly:** Buybacks happen every 6 months, creating steady demand and reducing price swings.
* **🔒 Automatic & Transparent:** Smart contracts handle everything on the blockchain – no tricks, totally visible.
* **🔄 Two Smart Phases:** First, focus on making tokens scarce (Phase 1). Later, focus on building treasury strength (Phase 2).

**Why This Benefits YOU ($YIN Holder):**

1. **📈 Value Goes Up:** Burning tokens (Phase 1) directly fights inflation and makes your remaining $YIN more scarce (and potentially more valuable).
2. **🛡️ Protects Your Investment:** Consistent buybacks (every 6 months) add stability and show confidence in the token.
3. **🚀 Fuels Future Growth:** In Phase 2, the treasury uses bought-back tokens to fund new opportunities that benefit the _whole_ ecosystem (and your investment).
4. **✅ Sustainable & Adaptable:** The model evolves to support long-term health without suddenly flooding the market with new tokens.

**Example Scenario:**\
Imagine Yin DAO makes $1 million in profit this half-year:

* **$100,000 (10%)** is used to buy $YIN tokens from the open market.
* **During Phase 1:** These bought $YIN tokens are **destroyed forever**, reducing total supply.
* **During Phase 2:** These bought $YIN tokens go to the **Treasury** to be used wisely for growth.

**The Bottom Line:**\
Yin DAO’s Buyback & Burn is a core promise: **We actively work to make your $YIN tokens more valuable.** Phase 1 creates scarcity. Phase 2 ensures flexibility for sustainable growth. It’s a transparent, long-term strategy designed to reward holders like you.
