Overview
The Buyback-and-Burn Contract is the core value engine of the protocol. It receives funds from shop operations, executes market buys of SHAMA on DEXs, and permanently burns all purchased tokens.Key Features
- Automated Buybacks: Executes market buys on designated DEX
- Permanent Burns: All purchased tokens are sent to burn address
- Full Transparency: Every buy and burn is recorded on-chain
- TWAP Execution: Time-weighted average pricing to minimize market impact
- Public Tracking: All transactions visible on dashboard
How It Works
- Shop’s net profit is calculated monthly (revenue minus operating costs)
- Designated percentage of profit (initially 50%, adjustable by governance) is converted to on-chain currency
- Funds are sent to the Buyback-and-Burn contract
- Contract executes market buys on the designated DEX
- All purchased tokens are sent to burn address (
0x000...dead) - Transaction is recorded on-chain with full details
Burn Transparency
Every burn event is published with:- Shop identifier
- Revenue for the period
- Operating costs for the period
- Net profit calculation
- Percentage allocated to burn
- DEX transaction hash for the buy
- Burn transaction hash
- Running total of tokens burned to date
This data is displayed on the public dashboard and is independently verifiable on-chain.
Functions
Core Functions
executeBuyback()- Executes market buy and burn (multisig or automated)setBurnPercentage(uint256 percentage)- Adjust burn allocation (governance controlled)setDEX(address dexRouter)- Update DEX router (governance controlled)
View Functions
getTotalBurned()- Total tokens burned to dategetBurnHistory()- View burn transaction historygetNextBurnEstimate()- Estimate next burn amount based on current profits
Emergency Functions
pause()- Pause buybacks (multisig controlled)withdrawFunds()- Emergency withdrawal (requires governance vote)
Coming Soon: Detailed technical documentation, contract addresses, and ABIs will be added after contract deployment.
Burn Impact Projections
| Scenario | Shops Active | Avg Monthly Profit/Shop | Burn Allocation (50%) | Monthly Buy Pressure |
|---|---|---|---|---|
| Early (Year 1) | 4 | $3,000 | $1,500 | $6,000 |
| Growth (Year 2) | 15 | $4,000 | $2,000 | $30,000 |
| Scale (Year 3) | 40 | $5,000 | $2,500 | $100,000 |
Security
- Multisig controlled execution
- Rate limiting on buybacks
- Maximum slippage protection
- Third-party audit pending