Buyback & Burn
In this section, both the fundamentals and the reasons why the community buys or burns P4NDA Tokens are explained.
{6.1} Buyback
Token Buyback & Burn: In this case, the company repurchases Panda Tokens from the market, increasing the valuation of Panda, under different circumstances
Buyback & Burn: This occurs when a certain percentage of the operational profits is allocated for token repurchase.
Secondary Market Buyback: In this case, the company repurchases tokens that have been sold through Brokers, Exchanges, etc.
Reserve Buyback: The company may choose to buy Panda Tokens to increase its reserves.
OTC Buyback: The company may use the sale of reserOes directly to investors as a financing method, known as Over The Counter (OTC) trading. A portion of the capital raised for expanding operations, development, and investments is allocated for repurchasing Panda Tokens from the market. This adds nominal liquidity, increases the token's valuation, and improves future financing standards for our reserves.
{6.2} Burn
The initial supply of P4NDA Tokens was 111,111,111 and there will never be more. As time passes, the circulating supply tends to decrease due to our burning strategies. By reducing the total circulating supply, a deflationary effect occurs in people's holdings. Panda is a limited asset, and with each burn, it becomes scarcer. As a result, the holdings of different holders/investors tend to represent more market power over time.
Burn Cases:
Buyback & Burn: This case occurs when a percentage of the operational profits is allocated for buyback purposes.
Token to Equity Conversion: As social panda is a tokenized company, it allows for the transfer of Panda Tokens, which represent a percentage of ownership in the company, to company Equity. To avoid duplicate assets, this transfer is one-way, meaning it is only possible to convert from Panda Tokens to Equity, not from Equity to Panda Tokens, and the transferred Panda Tokens are burned.
{6.3} Buy Back & Burn
In social panda, we distribute value to our Panda Token holders through token repurchase and burning on the market, increasing demand and decreasing supply, resulting in the increase of each investor's holdings along with the community's value. Additionally, with burning and its deflationary effect, the relative market power of each investor increases in the long term. Our business model is designed to generate flows and interactions with the Panda Token in any market period in the crypto industry. On one hand, the Business Units tend to contribute more to token repurchase and burning during bearish markets. On the other hand, during bullish markets, the SOcial Panda Portafolio takes center stage due to its investment results.
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