Token Burn

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Every time an automation is executed on Ethy, a fee is paid in $ETHY. These tokens are burned permanently, removing them from circulation.

This mechanism creates a direct link between platform usage and token scarcity: the more automations are created and executed, the more $ETHY supply is destroyed.

Beyond automations, fees collected from the Agent Commerce Protocol (ACP) and future subscription tiers will also be directed to burn, compounding the deflationary effect.

How It Works

  • Each automation costs 50 or 100 $ETHY depending on configuration and tier.

  • The fee is deducted from the user’s agent wallet at execution.

  • Burned tokens are sent to an irrecoverable address, permanently reducing circulating supply.

  • All burns are verifiable on-chain.

Why It Matters

  • Deflationary Pressure – Unlike inflationary models, where more tokens are minted to incentivize usage, Ethy’s model permanently reduces supply as activity grows.

  • Usage-Driven Scarcity – As more users deploy agents and run automations, burn volume increases proportionally.

  • Long-Term Alignment – Token value is tied directly to adoption and activity on the platform.

Example

  • Alice’s agent executes 100 automations over a month.

  • Each costs 100 $ETHY.

  • 10,000 $ETHY are burned in total.

  • Supply is permanently reduced, benefiting all holders as network adoption compounds.

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