Burn Mechanism

The burning mechanism in the Social AI platform serves multiple purposes, including creating scarcity, increasing the value of the native token ($SAI), and incentivizing token holders to participate in the reflection token. The reflection token allows users to stake their $SAI and earn a percentage of the platform fees as rewards based on their stake. Some of the fees collected on the platform will be burned as part of this process.

ALLOCATION OF FEE DISTRIBUTION
Burn	25% of the fees collected will be allocated for token burning. These tokens will be permanently removed from circulation, reducing the total supply of $SAI. This burn mechanism aims to create artificial scarcity, increasing the value of the remaining tokens.
Buyback	20% of the fees will be used for token buyback. The platform will utilize these funds to repurchase $SAI from the open market. The platform will hold the bought-back tokens for various purposes, such as liquidity provision, future token distribution, or ecosystem development.
Reflection Token Holders	15% of the fees will be allocated to the holders of the reflection token. The reflection token allows users to stake their $SAI and receive a portion of the fees collected based on their stake. This allocation rewards users for participating in the reflection token and provides an additional incentive to hold and stake $SAI.
Treasury	40% of fees will be retained by Social AI. These funds will be utilized for ongoing development, platform maintenance, operational costs, and further ecosystem expansion

By implementing this fee distribution structure, the burn mechanism is integrated into the reflection token system, ensuring that a portion of the fees collected on the platform is permanently removed from circulation. This approach enhances the value proposition of $SAI, rewards active token holders, and promotes the long-term sustainability and growth of the Social AI Social platform.