Black Jack Burn

What is the Black Jack Burn?

As a reminder, an unstake fee of 10% is applied in PirateDAO. These fees are going to a burn wallet (address available on Contracts Page)

Instead of burning straightly $JOLLY tokens in the burn wallet, we will add some innovation to this mechanism.

Here is the plan :

• We are going to use, from the treasury, an amount of $MIM equal to the value of the tokens on the burn wallet

• We will add liquidity to the JOLLY-MIM LP with this amount of $MIM and the $JOLLY on the burn wallet

• With this liquidity, the burn wallet will bonds JOLLY-MIM LP

• Tokens mint from these bonds will be claimed in one time at the end of the vesting (5 days) and then will be directly burnt

What is the benefit of the Black Jack Burn?

• Increasing the liquidity

• Growth of the treasury

• More tokens to burn at the end

• Better backing price after the burn from bonds

Why do you change your initial idea of simple burn?

We are always looking for continuous improvement even if it shows that the first plan wasn't perfect. If another idea makes our investors to be more profitable, then, after analysis, we will go for that idea.

This is the case for the Black Jack Burn. It doesn't mean that we will repeat that operation everytime but this option is here.

1st Black Jack Burn: 12 january 2022

Before/After

Subject	Before	After	% change
JOLLY PRICE	6.87	6.87	-
Market Cap	223,116 $	253,549 $	+11,60 %
Treasury Balance	247,323.00 $	260,439.00 $	+5,30 %
JOLLYs in Burn Wallet	2000.32	0.32	-
Value of these JOLLYs	13603 $	2 $	-
Liquidity	96,000 $	120,000 $	+25%

Before

After

Before

After Note : the runway and the backing per $JOLLY have been lowered from initial state but it wil be improved after the final burn from bonds

The transactions

Operation	Transactions	Comment
Remove MIM from treasury amount	https://snowtrace.io/tx/0x70a735a5279cadc09a78e66a9f9eb649d553f2f45c530732ccb26ab6e4d01178 https://snowtrace.io/tx/0xe1364632f25d2c3d3776cfc0b04f8e6ed2e251535c50891039aba7d42c32f563
Transfer MIM to burn wallet	https://snowtrace.io/tx/0x25a660d1a65861933c3b9adfb540d432455d9dce6a17fce3ae558ebf1169558d https://snowtrace.io/tx/0x6601dc1f8759bff886ea9b22510bb1953caca5e131af13c57178b7a983d0f2ed
LP Addition	https://snowtrace.io/tx/0xb069bb598aabf1e02477223045319ab8faa76997d8502c7fccae8cecb17b2433
Bonds Creation	Check all deposit transactions here : https://snowtrace.io/address/0xEca0F2566BbF7e7C0a653232F5e0D8E7573B791c	Multiple transactions due to the bond max limitation

Black Jack Burn - Credits

Special thanks to :

• AgarthaDAO for successfully experimenting this mechanism (Buy Back 2.0 https://medium.com/@agarthadao/introducing-buy-back-2-0-dc2a87a32ec5)

• Our Pirates community for pushing this idea