Mechanism Introduction

Price volatility in digital markets tends to be higher than in traditional markets, at least in the current market environment. Investor confidence is lower, as the digital economy is still in its infancy. Therefore, to attract investors, Kickstar decided to develop a clear, functional, stable, and profitable value proposition that operates within the digital ecosystem.

"Buyback-and-burn" is identified as a digital asset-specific terminology, but the concept is the same as with traditional share repurchase programs: To reduce supply and thus increase market prices, the issuer buys back previously issued tokens on the secondary market. In this case, the issuer will be Kickstar, and the token used in this process will be $KS, the project's governance token with a total supply of 100,000,000.

Investors coming to Kickstar may draw a comparison with dividend payouts, another method for companies to shift value to investors. The distinction is that dividends are paid in cash, whereas stock repurchases and $KS token buyback-and-burn schemes increase the asset's market value. From this, we can infer that: Buy-back and burn Tokens are another spotlight feature that will be integrated into our project because of their positive effects on $KS.

The buyback and burn process will end once a total of 50 million $KS tokens have been repurchased. This means, according to Kickstar's projection, the maximum total value spent after all burns will be 50 million (about 1/2 of the total original supply).

The common goal of buyback and burn is to increase a token's value by decreasing its supply as demand grows. Buybacks are frequently used for this purpose, but burning has its own set of effects on token prices. In general, this mechanism will all work toward a common goal and provide numerous benefits to investors, such as:

Firstly, the reduction in the total supply of tokens will lead to an increase in the value of the $KS token, which in turn will benefit our investors by increasing the value of their investment. This is because the demand for the remaining tokens will increase as the total supply decreases.

Secondly, the buy-back & burn feature will provide a level of stability to the token price by reducing the potential for large sell-offs in the market. When large investors try to sell $KS tokens, it can cause a dip in our token price. However, with the buy-back & burn feature, the total supply of $KS tokens will decrease over time, reducing the impact of large sell-offs and providing a more stable price for our investors.

Overall, the buy-back & burn feature will benefit our investors by increasing the value of their investment and providing a more stable price for the tokens. It is an innovative feature that sets our project apart from others in the blockchain industry and demonstrates our commitment to providing a valuable investment opportunity for our investors.