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Token Burning

What Is Token Burning?​

Token burning removes SPORE from circulation permanently. When 10% of revenue is used to buy and destroy SPORE tokens, the total supply shrinks. With fewer tokens available and stable demand, each remaining SPORE becomes more valuable.

Simple Example: How It Works​

Starting point:

  • Total SPORE: 10 billion tokens
  • Price: USD 0.01 per SPORE
  • Market cap: USD 100 million

What happens:

  1. User pays USD 1.20 for compute rental
  2. 10% (USD 0.12) is used to buy SPORE at market price
  3. At USD 0.01 per token, this buys 12 SPORE
  4. These 12 tokens are permanently destroyed
  5. Supply drops to 9,999,999,988 SPORE
  6. Each remaining token represents a slightly larger share of the network

Result: With fewer tokens but same demand, price rises over time.

Why Burning Increases Value​

The simple math:

Price = Market Demand ÷ Available Supply

Without burning:

  • Supply stays at 10 billion
  • Demand grows as users adopt
  • Price rises slowly

With burning:

  • Supply shrinks (10 → 6 → 4 billion)
  • Demand grows as users adopt
  • Price rises much faster (compounding effect)