# Buyback and Burn Program

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MAINNET ONLY. NOT APPLICABLE FOR TESTNET
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The concept of buyback and burn refers to the practice of protocols buying back their tokens from the market and subsequently burning them. A buyback and burn program aims to reduce the total number of tokens in circulation and positively impacts tokenholders as the price of their tokens increases.

The buyback and burn program implemented by Wenwin is funded by a portion of the revenues generated through ticket sales. These proceeds are used to buy the token on the open market. The token purchases happen according to a specific TWAP (Time Weighted Average Price) strategy that spreads purchases across both CEXes and DEXes and over a certain period of time to smoothen out the price impact. Once the tokens are bought back, they are burned and removed from circulation.

The buyback and burn program aims to maintain the token price at the level set by the average price observed during the initial LBP. Tokenholders who participated to the LBP could then count on future revenues generated by the protocol to support their initial investment in the LBP.&#x20;


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