BIT Token's Dual Burn Mechanism and USDT Distribution Model Drive Deflationary Economics

The native token of Biconomy Exchange has implemented a distinctive approach to token economics through both programmatic and market-driven burning mechanisms. The project unveiled its native token in September 2021, designed to create long-term value retention through active supply reduction and holder incentives.

Multi-Layer Deflationary Architecture

The token’s economic model incorporates a layered burning strategy. The core mechanism features a 6% transaction tax structure: 4% is allocated directly to token burning, while the remaining 2% is redistributed across all active wallets. This automated approach has proven efficient, with over 20% of the total token supply eliminated through this deflationary mechanism within just five months of operation.

Complementing the automatic system, Biconomy Exchange supplements burning through manual redemption quarterly. The exchange commits 50% of commission revenues toward repurchasing and retiring tokens from circulation. The first such redemption event in late January 2022 burned 20 billion tokens, valued at approximately $600,000 at the time of execution—representing 2% of the total outstanding supply.

Dividend Framework and Holder Benefits

Beyond burning mechanisms, the token offers a unique holder reward structure. The exchange distributes dividends in USDT to token holders, funded from operational profits on a quarterly basis. In February 2022, token holders received a 5% USDT distribution based on their holdings, directly rewarding long-term supporters with stable-coin returns.

This combined approach—simultaneous supply reduction through burning and cash returns through dividends—creates a dual incentive system. Holders benefit both from potential price appreciation through deflation and from immediate yield through dividend distributions, differentiating the token’s value proposition in a competitive market.