Trying to understand WMTX Buyback Mechanism

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Does WMTX Have a Buying Mechanism? How Does It Work?

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Hi @archer79, welcome to the community!

Here’s a breakdown of how the WMTX buyback mechanism works, with each step clearly defined:

  1. Revenue Generation from Customer Payments:
    World Mobile customers pay for their services using fiat currency, which creates a steady revenue stream.
  2. Traffic Settlement:
    AirNodes process network traffic and pass it on to EarthNodes, which then settle the traffic on-chain using the World Mobile Chain.
  3. Treasury Revenue Allocation:
    The fiat revenue is collected into the World Mobile Treasury, which is used to purchase WMTX tokens from the open market. These tokens are then stored in the Treasury wallet.
  4. Token Buyback & Reward Distribution:
    WMTX tokens held in the Treasury wallet, along with tokens from the Emissions Pool, are distributed as rewards to EarthNode operators and WMTX stakers, compensating them for securing the network.
  5. Demand-Driven Value Support:
    As the customer base grows and usage increases, the frequency and volume of buybacks rise. Given that WMTX has a fixed supply, this increased demand supports and potentially enhances its value.
  6. Sustainable Cash Flow Backing:
    The continuous and growing cash flow from World Mobile’s telecom operations directly supports the token, creating a sustainable foundation for ongoing buybacks.

World Mobile leverages its telco revenue to buy back WMTX tokens and distribute rewards, which helps maintain the token’s value as the network expands.