> For the complete documentation index, see [llms.txt](https://tunakings-organization.gitbook.io/tuna-rwa-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tunakings-organization.gitbook.io/tuna-rwa-docs/tokenomics/buyback-and-burn.md).

# Buyback & Burn

## Scheduled Buy-Back & Burn Program

| Year | Estimated Buy-Back Budget\*       | Target Burn Ratio (of total supply) | Cumulative Burn (EOY) |
| ---- | --------------------------------- | ----------------------------------- | --------------------- |
| 1    | Reinvest 30 % of net quota income | **2 – 3 %**                         | 2 – 3 %               |
| 2    | Reinvest 35 % of net quota income | **3 – 4 %**                         | 5 – 7 %               |
| 3    | Reinvest 40 % of net quota income | **4 – 5 %**                         | 9 – 12 %              |
| 4-5  | Dynamic (DAO-governed)            | **≈ 3 % / yr**                      | **≥ 15 % by end-Y5**  |

\* Budget allocation is ratified via Tuna Improvement Proposal (TIP) votes each fiscal year.

**Mechanics:**

1. Quota-rental and seafood-sales proceeds accumulate in the SPV treasury.
2. Treasury executes open-market TUNA purchases at pre-defined intervals (e.g., weekly TWAP).
3. Purchased tokens are sent to the designated burn address, permanently removing them from circulation.

## Physical Redemption Burn

* **Real TUNA Program:** Holders may redeem ≥ 5 000 TUNA for premium frozen fillets or canned SBT.
* **Immediate Burn:** Tokens surrendered for redemption are **instantly burned** on-chain.
* **Projected Flow:** Redemptions are expected to retire an additional **0.5 – 1 % of yearly circulating supply**, adding a demand-driven deflationary tailwind.

## Dynamic Parameters & Notifications

All burn forecasts are derived from the current commercial model and assume:

* Stable to rising SBT quota lease rates.
* Conservative seafood-sales volumes.
* Exchange rates in line with IMF baseline scenarios.

Actual execution may vary based on:

* **Quota pricing volatility** (catch-share auctions).
* **Market demand** for seafood and nutraceutical SKUs.
* **FX fluctuations** impacting AUD-denominated revenue converted to USDC.
* **DAO resolutions** that adjust buy-back ratios, redemption thresholds, or treasury allocation.

{% hint style="info" %}
Disclaimer

Nothing in this section constitutes a yield guarantee or investment advice. Figures are forward-looking estimates subject to material change through community governance.
{% endhint %}