How the platform controls the number of 8LNDS tokens and why this is needed

The 8LNDS token uses two different supply metrics: total supply and circulating supply. The total supply can grow over time as new tokens are minted. The circulating supply — the number of tokens available on the market — is restored to 100,000,000 tokens after each cycle of the automated buyback → burn → mint mechanism, which is executed by the Reward System smart contract after every Snapshot.

Total supply vs circulating supply

Total supply is the total number of 8LNDS tokens that have ever been created, including tokens currently held under vesting on behalf of users. Circulating supply is the number of tokens that are freely available on the market at any given moment.

In most token systems, distributing rewards means adding new tokens directly to the market, which increases the circulating supply and creates inflation. The 8LNDS model is designed to prevent this: each time new tokens are issued as bonuses, an equal number of tokens is first removed from circulation.

How the buyback → burn → mint mechanism works

The mechanism is triggered automatically after each Snapshot. The Reward System smart contract executes three steps in sequence:

Step 1 — Buyback: the contract uses funds allocated by Maclear to purchase the required number of 8LNDS tokens on the open market. The purchased tokens move to the contract. Total supply remains unchanged; circulating supply decreases by the purchased amount.

Step 2 — Burn: the purchased tokens are permanently removed from existence. After the burn, both the total supply and the circulating supply are lower by the burned amount.

Step 3 — Mint: the contract issues exactly the same number of new tokens that must be distributed to users as bonuses. These tokens are assigned to users, stored inside the smart contract, and released gradually through vesting. After minting, the total supply returns to its prior level. The circulating supply is restored to 100,000,000, since the newly minted tokens — although held under vesting on behalf of users — count toward circulation.

Example: during the week, users accumulated 100,000 bonus points, equal to $1,000 in tokens. If the token price is $0.005, the contract must distribute 200,000 tokens. It buys 200,000 tokens for $1,000 — circulating supply drops to 99,800,000. Burns them — total supply drops by 200,000. Mints 200,000 new tokens for users under vesting — total supply returns to prior level, circulating supply is restored to 100,000,000. The 200,000 newly minted tokens are held under vesting on behalf of users and reach the open market only when users claim and sell them gradually over 10 months.

Why this model is needed

Without supply control, regular bonus payouts would continuously add tokens to the market, increasing circulating supply and creating downward price pressure proportional to the scale of the bonus program. The buyback → burn → mint mechanism ensures that each bonus distribution is matched by an equivalent removal of tokens from circulation. The bonus system can scale with platform growth without generating inflation from within the system itself.

All three steps are executed automatically by the Reward System smart contract without manual involvement from Maclear. The circulating supply at any point can be verified on BaseScan: basescan.org/token/0x55F9C8992fc4AbCE5ACa585bf8F18284a2379D4C

Maclear AG, registered in Switzerland, member of PolyReg SRO, a self-regulatory organization supervised by FINMA.