How it works
The fee accumulates exactly as it does for a basket. The draw spends it differently: instead of buying equities, it buys the coin on its own curve and burns the coins it receives. Supply falls, the curve is unchanged, and nothing is left in a treasury.
What it is for
A basket gives holders something to claim. A buyback gives them a bid that shows up when the coin is being sold, funded by the selling itself. A coin that expects to be traded hard and held briefly is a better fit for the second than the first.
What it is not
- It is not a floor. The buyback is as large as the fees collected and no larger, and the price can fall through it.
- It is not a claim. There is nothing to redeem in burn mode, because nothing is held: the value goes into supply, not into a basket.
- It is not a switch. A coin is launched in one mode or the other, and the choice has no setter.
Side by side
| Basket | Buyback and burn | |
|---|---|---|
| Fee buys | Tokenized equities | The coin itself |
| Holder gets | A claim on real holdings | A falling supply and a standing bid |
| Redeemable | Yes, pro rata by burning | Nothing to redeem |
| Visible as | A balance at the basket address | Burn transactions and total supply |
| Set at launch | Yes, no setter afterwards | Yes, no setter afterwards |
Neither mode is deployed. Both are described here because the choice is made in the launch transaction, and a choice with no setter deserves to be understood before it is signed.