🔥Inherent Burning Mechanism

The locking and claiming mechanism is self-balancing, matching supply with demand through engagement

In the dVIN ecosystem, Tasting Tokens introduce an innovative way to manage the $VIN token's supply and its market dynamics. Each luxury wine bottle is preloaded with $VIN to be released with up to 12 Tasting Tokens. This unique system has several implications. Initially, the $VIN embedded within each bottle is essentially "locked" away from the general market supply until the bottle is opened. Given the nature of luxury wines, many bottles may not be opened for 10-15 years, delaying the entry of this $VIN into circulation.

Moreover, there's an anticipated behavior where a considerable number of consumers might not engage in the process of "opening" the Digital Cork to mint Tasting Tokens. This behavior could be likened to air travelers who do not claim their air miles; despite the value and potential rewards, some individuals will opt out of the process. This phenomenon means that a portion of $VIN designated for these tokens will remain unused and out of circulation.

In practice, most 750ml wine bottles are shared among 3-4 people, not 12, which is the maximum number of Tasting Tokens that can be minted per regular bottle large format bottles can mint more Tasting Tokens). Consequently, the $VIN allocated for any Tasting Tokens that are not minted will be considered as "burned" or permanently removed from circulation. This mechanism of locking up $VIN and the potential for it not to be fully utilized (or burned) effectively reduces the available supply of $VIN in the market.

These factors combined—the locking up of $VIN for extended periods, the likelihood of some $VIN never being claimed, and the burning of $VIN allocated to unclaimed Tasting Tokens—are expected to decrease the overall supply of $VIN. A reduced supply, against a backdrop of constant or increasing demand, should naturally exert inflationary pressure on the value of $VIN, making it more valuable over time. This supply management strategy is designed to benefit the dVIN ecosystem by potentially enhancing the value of $VIN for holders and participants.