# BURN MECHANISM: CHIP SINK TO BALANCE THE ECOSYSTEM

Jammy’s burn model is designed to maintain in-platform economic equilibrium by reducing chip circulation through a transparent and controlled process. The mechanism centers around the team wallet, which accumulates chips through two primary sources:

### 💰 **Sources of Chips Accumulated in the Team Wallet:**

1. **House Fee from Games:** \
   At the end of each game, 10% of the total game pot is collected as a platform fee and transferred directly to the team wallet.
2. **Gift Card Purchases:** \
   When users redeem chips in the in-app Shop to acquire gift cards, the corresponding chip amount is also deposited into the team wallet.

### 🏦 **Use of Accumulated Chips:**

The chips collected in the team wallet are managed in two distinct ways:

1. **Recycled into the Ecosystem:** \
   A portion of the chips may be reintroduced into the platform through reward campaigns, community giveaways, or event-based incentives—fostering continued engagement.
2. **Periodic Burns:** \
   At intervals determined by the platform, the team initiates chip burn events based on a model that tracks the ratio between total chip supply and circulating chip volume. These burn events are publicly announced, and the burned chips are permanently removed from the supply, ensuring long-term sustainability and deflationary control.

This dual-purpose strategy transforms the team wallet into both a reward engine and a supply-balancing mechanism, supporting the health of the Jammy ecosystem and protecting the value flow stemming from $JAM staking.

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