🔥Buyback and Burn model
Understanding how Dabba tokens move through the Dabba network
This article on Mint and Burn Pro's and Con's is a good starting point to understand the concept. This Messari article has more useful links as well.
An on-chain marketplace between the Dabba Networks' contributors and customers is created through a Burn and Mint structure. This means that whenever data is consumed on a hotspot on the Dabba network, data credits are consumed and Dabba tokens are burned. As there is a fixed maximum supply of Dabba, the value of the token increases because after the burning, there are fewer Dabba tokens in existence.
Supply
Dabba tokens are minted in a regular emission schedule and distributed to various stakeholders in proportion to their contribution to the network. The Dabba foundation will maintain a liquidity pool on a dex wherein token holders may swap Dabba tokens against a stable coin.
Demand
Consumers who want to access internet through hotspots on the Dabba network buy Data Credits from Dabba Inc using fiat currency. This fiat currency is converted to a stable coin by Dabba Inc and then used to swap for Dabba tokens. Those Dabba tokens are then burned to generate Data credits which are then passed on to the customer.
Download a high resolution image of the model here.
Dabba Data Credits
Dabba Data Credits allow users to access the internet on the Dabba Network of hotspots . The price of Dabba Data Credits is fixed in USD (1 Data Credit = $0.01 = 1GB). Like pre-paid cellphone minutes or airline miles, Data Credits are non-transferrable, and can only be used by their original owner.
To acquire Data Credits, network users convert DBT into Data credits. Any DBT converted to Data Credits is permanently removed (“burned”) from the circulating supply.
Dabba Data credits are the mechanism by which consumers compensate the network of contributors for their work. As more hotspots are deployed on the network by contributors the number of DABBA tokens burned will increase, as demand increases from consumers the velocity at which DABBA tokens burn will also increase, and the value of the DABBA token will become tightly linked to the utility that the Dabba Network provides.
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