Supply Management Policy

Pre-Quarterly Reserved Supply Burn Implementation

Since the inception of the SIX Protocol, the SIX ecosystem was established on the SIX Protocol chain. To support the network's early growth, SIX Network subsidized SIX tokens for gas fees on the SIX Protocol. As part of this system, SIX tokens are created with every block. The supply has been controlled through a Collateral Account and Post-Quarterly Burn to avoid excessive supply.

While the aforementioned solution works well to prevent permanently excessive supply, we recently identified that it might occasionally lead to temporary surplus. Although this surplus is securely held in the Collateral Account and cannot be accessed, it could potentially pose a tokenomics risk if exploited.

To address this, we have introduced a new solution: the Pre-Quarterly Reserved Supply Burn. This approach eliminates the issue of temporary surplus and ensures more effective control of the token supply. By doing so, it prevents oversupply and mitigates potential risks from misuse in the unlikely event of any exploit.