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The mint funds collected by the Hocus Pocus platform are used for various purposes, including purchasing HOC tokens, burning a portion of them, and sending a portion to the treasury. The Buy and Burn function which is implemented in the platform's smart contract allows anyone to call the public function that automatically uses the PLS in the contract to purchase HOC tokens and burn a portion of them. The function caller is rewarded with a fee for using this function.
The overall performance of the strategies used by the platform determines how deflationary the Hocus Pocus token becomes. The Treasury funds are allocated for a variety of strategies, but their ultimate goal is always to "buy HOC and burn it". The better the performance, the more deflationary the token becomes, making it more valuable for users. In short, the Hocus Pocus protocol is in constant competition against the market, and good performance in booster sales, the treasury, and burned tokens for ending brewing too early is crucial to ensure that Hocus Pocus becomes a deflationary token. This deflationary mechanism is designed to benefit long-term Hocus Pocus holders and incentivize them to hold onto their tokens. The success of this deflationary mechanism relies on the platform's ability to attract new users and retain existing ones by providing innovative and effective solutions to the challenges of decentralized finance.