💱Mint, Buyback & Burn
Understanding how Dabba tokens move through the Dabba network
Last updated
Understanding how Dabba tokens move through the Dabba network
Last updated
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 mint, buyback and burn 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 is responsible for token mint and distribution.
Demand
Data credits (DC) is the only currency that gives internet access on the Dabba Network. DC can only be created by burning the native Dabba token - the DBT. The hotspot is loaded with DC's by burning DBT. End users who wish to connect & browse the internet, will acquire DC's from the hotspot by paying fiat. Backhaul providers will top-up the hotspot with DC's by burning DBT.
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 DBT tokens burned will increase, as demand increases from consumers the velocity at which DBT tokens burn will also increase, and as a result the value of the DBT token will become tightly linked to the utility that the Dabba Network provides.
