# 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 🔥 │
└─────────────────────────────────┘
```
---
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