> For the complete documentation index, see [llms.txt](https://hello-fun-1.gitbook.io/hello.fun-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hello-fun-1.gitbook.io/hello.fun-docs/buybacks-and-burn.md). # Buybacks & Burn Buybacks and burn are part of the planned $HELLO economic model. Under the Hello Economy, a portion of Hello.Fun platform revenue is intended to be used to purchase $HELLO from the market and permanently remove the purchased tokens from supply. This mechanism is designed to connect platform activity with the $HELLO ecosystem. ### The Planned Allocation The Hello Economy proposes allocating **60% of platform revenue** to $HELLO market buybacks. ```mermaid flowchart LR A["Hello.Fun Platform Revenue"] --> B["60% Allocation"] B --> C["$HELLO Market Buybacks"] C --> D["$HELLO Purchased"] D --> E["Burn"] ``` The remaining 40% is planned for market buybacks of selected Hello.Fun launches and is covered separately under **Launch Buybacks**. ### Market Buybacks The planned mechanism uses market purchases. $HELLO would be purchased through the market using the revenue allocated to the $HELLO side of the Hello Economy. ```mermaid flowchart LR A["Platform Revenue"] --> B["Buyback Allocation"] B --> C["Market"] C --> D["$HELLO Purchased"] ``` This means the buyback mechanism is designed around acquiring $HELLO through market activity. ### Burning Purchased $HELLO $HELLO acquired through the planned buyback mechanism is intended to be burned. Burning permanently removes those purchased tokens from the circulating ecosystem. ```mermaid flowchart LR A["$HELLO Purchased"] --> B["Burn"] B --> C["Permanently Removed From Supply"] ``` The planned model does not return bought back $HELLO to platform circulation. ### Connecting Revenue to $HELLO The purpose of the model is to create a direct economic connection between Hello.Fun activity and $HELLO. ```mermaid flowchart TD A["Hello.Fun Activity"] --> B["Platform Revenue"] B --> C["60% $HELLO Allocation"] C --> D["Market Buybacks"] D --> E["$HELLO Burn"] ``` As platform activity generates protocol revenue, the planned Hello Economy determines how part of that revenue can flow back toward $HELLO. ### Buyback and Burn Are Different Steps A buyback and a burn are not the same action. A **buyback** acquires $HELLO from the market. A **burn** permanently removes the purchased $HELLO from supply. ```mermaid flowchart LR A["Market"] --> B["Buyback"] B --> C["Purchased $HELLO"] C --> D["Burn"] D --> E["Removed From Supply"] ``` Both steps form part of the planned $HELLO mechanism. ### Relationship With the Fixed Supply The planned $HELLO tokenomics begin with a fixed total supply of: **1,000,000,000 $HELLO** The buyback and burn model is designed to remove purchased $HELLO from that supply over time once the mechanism becomes active. The model does not depend on creating additional $HELLO to fund buybacks. ### No Automatic Minting The economic model is based on using platform revenue for market purchases. It is not based on minting additional $HELLO for the buyback process. ```mermaid flowchart LR A["Platform Revenue"] --> B["Market Purchase"] B --> C["Existing $HELLO"] C --> D["Burn"] ``` The intended flow is revenue into existing market supply, followed by permanent removal of the purchased tokens. ### Part of a Larger Economic Model $HELLO buybacks represent one side of the Hello Economy. ```mermaid flowchart TD A["100% Planned Ecosystem Allocation"] --> B["60%"] A --> C["40%"] B --> D["$HELLO Buybacks"] D --> E["Burn"] C --> F["Selected Launch Buybacks"] ``` The $HELLO side is designed around buyback and burn. The launch side is designed around supporting selected Hello.Fun markets through separate market buybacks. ### Current Status The $HELLO buyback and burn mechanism is part of the planned Hello Economy. It is not currently active within the deployed Hello.Fun protocol. The current platform generates protocol revenue through its deployed fee system, but that revenue is not currently being automatically divided into the planned 60% and 40% ecosystem allocations. The $HELLO burn mechanism is also not currently active. ### The Planned $HELLO Loop The intended economic flow is straightforward: **Platform Activity → Platform Revenue → $HELLO Market Buybacks → Burn** ```mermaid flowchart LR A["Platform Activity"] --> B["Platform Revenue"] B --> C["$HELLO Buybacks"] C --> D["Burn"] D --> E["Reduced $HELLO Supply"] ``` The goal is to make $HELLO part of the economic activity generated by Hello.Fun itself. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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