> For the complete documentation index, see [llms.txt](https://lore.wyvernx.win/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lore.wyvernx.win/buy-and-burn.md). # Buy & Burn Legacy's Buy & Burn mechanism takes 21% of total ETH fees generated by the protocol through [creating builders](/builders-phase.md) and uses those funds to buy Legacy on Uniswap v3 WETH/LEGACY pool and then automatically burns those tokens removing them from the circulation. The idea of Buy & Burn in Legacy was to replicate the amount of lost Bitcoins. It is said that around 13 - 35% of all Bitcoin tokens are gone through lost keys, thrown out hard drives as well as the ≈5% of Bitcoins that Satoshi Nakamoto owns. The estimations are quite inaccurate, some sources say it is 13%, some say it is closer to 25%. Legacy chose 21% for that matter. \ \ Setting 21% of all Legacy tokens that will ever be created for Buy & Burn should help create a squeeze in the supply of Legacy supporting the price appreciation long-term. 10% of total ETH fees generated by Legacy protocol are sent to TitanX's Buy\&Burn. ### Smart Contract Methods User Incentive Fee: Protocol Participants get an incentive fee of 0.66% ETH from collected fees for calling the Redistribute Paydays + B\&B smart contract function which distributes the ETH between paydays for stakers and buy and burn. Similar incentive fee reward of 0.66% is granted for triggering Buy & Burn function thats buys Legacy from the open market via Uniswap v3 WETH/LEGACY pool and burns all the amount of purchased Legacy tokens. Both actions can be done in [Legacy dApp](https://app.legacy.diamonds/).\ \ \ WyvernX Fund Flow Visualization - Path to Buy & Burn ``` High-Level Overview ┌─────────────────────────────────────────────────────────────────────────────────────────┐ │ WYVERNX ECOSYSTEM FUND FLOW │ │ How TitanX & ETH Flow to Buy & Burn Contract │ └─────────────────────────────────────────────────────────────────────────────────────────┘ ┌──────────────────────────┐ │ USER ACTIONS │ │ (Entry Points) │ └──────────┬───────────────┘ │ ┌─────────────────────┼─────────────────────┐ │ │ │ ▼ ▼ ▼ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐ │ Mint WyvernX │ │ Stake WyvernX │ │ Stake TitanX │ │ (pays TitanX) │ │ (rewards pool) │ │ (in Vault) │ └────────┬────────┘ └────────┬────────┘ └────────┬────────┘ │ │ │ ▼ │ ▼ ┌─────────────────┐ │ ┌─────────────────┐ │ WyvernX.sol │◄───────────┘ │ WyvernVault.sol │ │ (Main Token) │ │ (TitanX Stakes) │ └────────┬────────┘ └────────┬────────┘ │ │ │ TitanX fees │ ETH from TitanX │ distributed │ stake rewards ▼ ▼ ┌─────────────────────────────────────────────────────────────────┐ │ DISTRIBUTION HUB │ │ (When claim() is called) │ └─────────────────────────────────────────────────────────────────┘ │ │ ETH Distribution from WyvernVault.claim() │ ├──────────► 80% ──────► TitanBuy.sol ──────► buys TitanX with ETH │ ├──────────► 5% ──────► WyvernBuyAndBurn.sol ◄─── (ETH → WETH) │ ├──────────► 7% ──────► Legacy Protocol │ ├──────────► 5% ──────► Genesis Wallet │ └──────────► 3% ──────► Caller Incentive Fee ``` ``` 🔄 Complete Lifecycle Flow ┌─────────────────────────┐ │ TITANX PROTOCOL │ │ (External Protocol) │ └───────────┬─────────────┘ │ Stakes earn ETH rewards │ ▼ ┌─────────────────────────────────────────────────────────────────────────────┐ │ WYVERN VAULT │ │ ┌─────────────┐ ┌─────────────┐ │ │ │ WyvernStake │◄───── TitanX transferred ────────────│ vault │ │ │ │ Contracts │ for staking │ variable │ │ │ └──────┬──────┘ └─────────────┘ │ │ │ ▲ │ │ │ Stakes mature, │ │ │ │ claim() triggers 73% TitanX │ │ ▼ │ │ │ ┌─────────────┐ ┌────────────────┐ ┌───────┴───────┐ │ │ │ ETH Claimed│────────►│ claim() │────────►│ TitanBuy │ │ │ │ from TitanX│ 80% │ distributes │ │ buyTitanX() │ │ │ │ Protocol │ │ ETH │ └───────┬───────┘ │ │ └─────────────┘ └───────┬────────┘ │ │ │ │ │ │ └────────────────────────────────────┼──────────────────────────┼────────────┘ │ │ 5% ETH │ TitanX bought │ │ ▼ ▼ ┌────────────────────────┐ ┌─────────────────────┐ │ WyvernBuyAndBurn │ │ WyvernX.sol │ │ │ │ │ │ ETH → WETH (receive) │ │ Receives TitanX │ │ │ │ for: │ │ buyAndBurnWyvernX() │ │ - Staking rewards │ │ WETH→TitanX→WyvernX │ │ - Cycle payouts │ │ │ │ │ │ │ ▼ │ └─────────────────────┘ │ BURN 🔥 │ │ (burnLPTokens()) │ └────────────────────────┘ ``` ``` Path 3: LP Fee Collection → Liquidity or Distribution ┌────────────────────────────────────────────────────────────────────────────────┐ │ UNISWAP V3 POOL (WyvernX/TitanX) │ │ Accrues trading fees │ └────────────────────────────────────────────────────────────────────────────────┘ │ │ collectFees() called ▼ ┌───────────────────────┐ │ WyvernBuyAndBurn.sol │ │ _collectFees() │ └───────────┬───────────┘ │ ┌─────────────────────┴─────────────────────┐ │ │ ▼ ▼ ┌───────────────────┐ ┌───────────────────┐ │ If _addLiquidity │ │ If !_addLiquidity │ │ == true │ │ │ └─────────┬─────────┘ └─────────┬─────────┘ │ │ ▼ ▼ ┌───────────────────┐ ┌───────────────────┐ │ Add both WyvernX │ │ WyvernX fees → │ │ and TitanX back │ │ Liquidity Bonding │ │ to LP as liquidity│ │ │ └───────────────────┘ │ TitanX fees → │ │ WyvernX contract │ │ (staking rewards) │ └───────────────────┘ ``` ``` Path 2: Mint Protocol Fees → TitanX Distribution ┌────────────────────────────────────────────────────────────────────────────────┐ │ USER MINTS WYVERNX │ └────────────────────────────────────────────────────────────────────────────────┘ │ │ User pays TitanX as mint fee ▼ ┌─────────────────────┐ │ WyvernX.sol │ │ s_undistributedFees│◄──── TitanX accumulates here └──────────┬──────────┘ │ │ distributeFees() or triggerPayouts() ▼ ┌─────────────────────┐ │ _distributeTitanX()│ └──────────┬──────────┘ │ ┌──────────────────────────┼──────────────────────────┐ │ │ │ ▼ ▼ ▼ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────────┐ │ 3% Incentive │ │ 73% Vault │ │ 7% Genesis │ │ (to caller) │ │ (if minting │ │ Wallet │ │ │ │ phase active) │ │ │ └─────────────────┘ └─────────────────┘ └─────────────────────┘ │ ┌──────────────────────────┼──────────────────────────┐ │ │ │ ▼ ▼ ▼ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────────┐ │ 5% Liquidity │ │ 15% Cycle │ │ │ │ Bonding │ │ Payouts Pool │ │ WyvernVault │ │ │ │ (8/28/90/369/ │ │ (compounds into │ └─────────────────┘ │ 888 day) │ │ TitanX stakes) │ └─────────────────┘ └─────────────────────┘ ``` ``` Path 1: Direct ETH Flow (Main Source) WyvernVault.claim() │ │ Claims ETH from TitanX stake rewards ▼ ┌────────────────────────────┐ │ ETH Distribution (100%) │ │ │ │ ┌──────────────────────┐ │ │ │ 5% → BuyAndBurn │──┼──────────────────────────┐ │ └──────────────────────┘ │ │ │ ┌──────────────────────┐ │ │ │ │ 80% → TitanBuy │──┼────────┐ │ │ └──────────────────────┘ │ │ │ │ ┌──────────────────────┐ │ │ │ │ │ 7% → Legacy │ │ │ │ │ └──────────────────────┘ │ │ │ │ ┌──────────────────────┐ │ │ │ │ │ 5% → Genesis │ │ │ │ │ └──────────────────────┘ │ │ │ │ ┌──────────────────────┐ │ │ │ │ │ 3% → Caller │ │ │ │ │ └──────────────────────┘ │ │ │ └────────────────────────────┘ │ │ │ │ ▼ ▼ ┌──────────────┐ ┌───────────────────┐ │ TitanBuy │ │ WyvernBuyAndBurn │ │ receives │ │ receives ETH │ │ ETH │ │ │ └──────┬───────┘ └─────────┬─────────┘ │ │ ▼ │ Auto-wraps ┌───────────────┐ │ to WETH │ Swap ETH→WETH │ │ │ then WETH→ │ ▼ │ TitanX │ ┌───────────────────┐ └───────┬───────┘ │ receive() wraps │ │ │ ETH → WETH │ ▼ └─────────┬─────────┘ ┌───────────────┐ │ │ TitanX │ │ │ Distribution │ │ └───────┬───────┘ │ │ │ ┌────────────────────────────────┼──────────────────────┘ │ │ ┌─────────────┴───────────────────┐ │ │ When activeSharesPercentage │ │ │ >= 50% (LOWER_BUFFER) │ │ │ │ │ │ Combined 95% → WyvernX.sol │ │ │ (for staking rewards) │ │ │ │ │ │ When < 50%: │ │ │ - 22% → WyvernX (stakers) │ │ │ - 73% → WyvernVault (compound) │ │ │ │ │ │ Always: │ │ │ - 5% → TINC (TitanFarms) │ │ └─────────────────────────────────┘ │ │ ▼ ┌─────────────────────────────────┐ │ buyAndBurnWyvernX() │ │ │ │ WETH → swap → TitanX → swap → │ │ WyvernX → BURN 🔥 │ └─────────────────────────────────┘ ```