# Buyback and Burn

**Token Holder Benefits**: What AI is committed to rewarding its $WHAT token holders through an innovative buyback and burn model.

### The token buyback and burn mechanism works as follows:

1. **Continuous Token Buybacks**: 20% of What AI's profits will be used to buy back $WHAT tokens from the open market regularly.
2. **Automatic Token Burns**: The purchased $WHAT tokens will then be permanently removed from circulation, reducing the total token supply over time.
3. **Proportional Token Distribution**: The remaining $WHAT tokens will be distributed to existing token holders, proportional to their holdings. This ensures that as the total supply decreases, each holder's relative ownership increases.

## **Benefits of the Buyback and Burn Model**

1. **Scarcity and Price Appreciation**: By reducing the total supply of $WHAT tokens, the buyback and burn process creates scarcity, which can lead to increased token value over time.
2. **Alignment of Interests**: The buyback and burn strategy aligns the interests of What AI and its token holders, as the platform's success directly benefits the token's value.
3. **Deflationary Pressure**: The continuous reduction in the total supply of $WHAT tokens creates deflationary pressure, which can positively impact the token's price stability and growth potential.
4. **Increased Token Demand**: The knowledge that $WHAT tokens will be regularly removed from the market can drive increased demand from investors and users who wish to hold the token.
5. **Transparency and Trust**: The buyback and burn process is executed through smart contracts, ensuring transparency and building trust within the What AI community.
6. **Ecosystem Sustainability**: By creating value for token holders through the buyback and burn model, What AI fosters a sustainable ecosystem where users are incentivized to participate and hold the token long-term.
7. **Reduced Selling Pressure**: The inherent value creation through the buyback and burn mechanism may lead to decreased selling pressure, as token holders are less inclined to sell their $WHAT tokens.

By implementing this cutting-edge buyback and burn model, What AI aims to provide its token holders with a unique opportunity to benefit from the platform's success and the increasing scarcity of the $WHAT token.