BURNING LAB is PIXONA’s long-term deflationary mechanism designed to gradually reduce the total supply of the collection over time. Instead of leaving creator royalties unused, all royalties generated from secondary sales are allocated to the PIXONA Vault, where they can eventually be used to purchase and permanently burn PIXONA NFTs.
The purpose of BURNING LAB is simple: create scarcity, support long-term holders, and establish a sustainable system that benefits the collection beyond the initial mint.
How BURNING LAB Works
1. Secondary Sales Generate Royalties
Every time a PIXONA NFT is bought or sold on supported secondary marketplaces, a 5% creator royalty is collected from the transaction.
These royalties are not distributed as profits. Instead, all royalty earnings are deposited directly into the PIXONA Vault, which serves as the treasury that powers the BURNING LAB system.
2. The PIXONA Vault
The PIXONA Vault continuously accumulates royalty funds generated through market activity. As more PIXONA NFTs are traded, the vault balance grows over time.
This means that every secondary sale contributes directly to the long-term sustainability of the ecosystem.
The vault exists for one primary purpose: to fund future buybacks and burns through BURNING LAB.
3. Buyback Conditions
BURNING LAB does not perform random buybacks. A buyback event may only occur when the available funds inside the PIXONA Vault are equal to or greater than the current PIXONA floor price.
Once sufficient funds have accumulated, the treasury can purchase one or multiple PIXONA NFTs directly from the secondary market, typically from the collection floor.
The number of NFTs purchased depends on:
- The amount of available royalty funds.
- The current floor price.
- Market conditions at the time of purchase.
4. Permanent Burning
After the NFTs are acquired through the BURNING LAB system, they are sent to a designated burn wallet where they become permanently inaccessible.
Once burned, these NFTs:
- Can no longer be traded.
- Can no longer be transferred.
- Can never return to circulation.
- Are permanently removed from the total supply.
This process gradually decreases the circulating supply of PIXONA, making the remaining NFTs increasingly scarce over time.
Example Scenario
PIXONA Vault balance: 0.50 ETH
Current floor price: 0.10 ETH
Since the available funds exceed the floor price, BURNING LAB can purchase five PIXONA NFTs from the floor. Those NFTs are then permanently burned.
Original collection supply: 10,000 NFTs
NFTs burned: 5 NFTs
Remaining supply: 9,995 NFTs
As additional royalties accumulate, future burn events may continue reducing the collection supply.
Benefits of BURNING LAB
- Deflationary Supply: Each burn permanently reduces the total number of PIXONA NFTs in existence.
- Increased Scarcity: As the circulating supply decreases, the rarity of the remaining NFTs increases.
- Long-Term Holder Value: Holders benefit from owning a larger percentage of the remaining collection as supply continues to decrease.
- Sustainable Ecosystem: BURNING LAB allows secondary market activity to contribute directly to the collection's future rather than relying solely on initial mint funds.
- Community-Driven Growth: The system is powered entirely by trading activity. Every sale contributes to the vault, and every royalty helps support future buybacks and burns.
Transparency
PIXONA VAULT WALLET:
0xc57F99d9169d6cF1CE517e1f61c70A75b610dB8B
The PIXONA team aims to maintain transparency regarding:
- Vault balances.
- Buyback events.
- Burn transactions.
- Total NFTs burned.
- Remaining circulating supply.
This allows holders to monitor the impact of BURNING LAB and track the long-term reduction of the collection supply.
Important Notes
- BURNING LAB is entirely funded through the 5% creator royalty.
- Buyback events are not guaranteed on a fixed schedule.
- The amount of NFTs burned will depend on available treasury funds and market prices.
- All burned NFTs are permanently removed from circulation and cannot be recovered.
- Lower trading volume may result in slower accumulation of vault funds.
The Long-Term Vision
BURNING LAB was created to give PIXONA a sustainable and self-powered deflationary mechanism.
As trading activity continues, royalties accumulate inside the PIXONA Vault. When sufficient funds become available, the vault purchases PIXONA NFTs from the market and permanently removes them from circulation.
Over time, this creates a continuously decreasing supply, making every remaining PIXONA increasingly scarce while rewarding long-term holders and strengthening the overall ecosystem.