# 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](https://piratedao.gitbook.io/piratedao/informations/contracts) Page)

Instead of burning straightly $JOLLY tokens in the burn wallet, we will add some innovation to this mechanism.&#x20;

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&#x20;
* Growth of the treasury
* More tokens to burn at the end
* Better backing price after the burn from bonds&#x20;

## 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.&#x20;

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&#x20;

<table><thead><tr><th width="233">Subject</th><th width="150" align="right">Before</th><th width="150" align="right">After</th><th align="center">% change</th></tr></thead><tbody><tr><td>JOLLY PRICE</td><td align="right">6.87</td><td align="right">6.87</td><td align="center">-</td></tr><tr><td>Market Cap</td><td align="right">223,116 $</td><td align="right">253,549 $</td><td align="center"><mark style="color:green;"><strong>+11,60 %</strong></mark></td></tr><tr><td>Treasury Balance</td><td align="right"> 247,323.00 $</td><td align="right"> 260,439.00 $</td><td align="center"><mark style="color:green;"><strong>+5,30 %</strong></mark></td></tr><tr><td>JOLLYs in Burn Wallet</td><td align="right">2000.32</td><td align="right">0.32</td><td align="center">-</td></tr><tr><td>Value of these JOLLYs</td><td align="right">13603 $</td><td align="right">2 $</td><td align="center">-</td></tr><tr><td>Liquidity</td><td align="right">96,000 $</td><td align="right">120,000 $</td><td align="center"><mark style="color:green;"><strong>+25%</strong></mark></td></tr></tbody></table>

![Before](https://1550484132-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFOf5LoJ8nY2OsJEoKqOP%2Fuploads%2FJsDAIShkCUdcdSrXro1U%2Ff79833b5-04b9-4745-a8d6-98e30126866b.jpeg?alt=media\&token=28c57143-b423-4e50-b4ea-2396060406a0)

![After](https://1550484132-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFOf5LoJ8nY2OsJEoKqOP%2Fuploads%2FQs2LHFWFQzAxs1BuGriD%2F10311c76-de69-4f4d-a20e-8d673c91d8ed.jpeg?alt=media\&token=311647e6-75d2-4d44-b8fe-3322ee406f53)

![Before](https://1550484132-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFOf5LoJ8nY2OsJEoKqOP%2Fuploads%2Fg21jebSeBRujKDWvSjQ3%2Fscreen1.png?alt=media\&token=3eacb4cf-7ed2-416b-ab29-4e884e323a48)

![After&#x20;
Note : the runway and the backing per $JOLLY have been lowered from initial state&#x20;
but it wil be improved after the final burn from bonds](https://1550484132-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFOf5LoJ8nY2OsJEoKqOP%2Fuploads%2Fc3FYmCnQ31jcsjpDwRjy%2Fscreen_after.png?alt=media\&token=8e2ad744-838c-4ae0-9417-3e9d32622b40)

### The transactions

| Operation                       | Transactions                                                                                                                                                                                                                                                                                                                                                                                                              | Comment                                              |
| ------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------- |
| Remove MIM from treasury amount | <p><a href="https://snowtrace.io/tx/0x70a735a5279cadc09a78e66a9f9eb649d553f2f45c530732ccb26ab6e4d01178"><https://snowtrace.io/tx/0x70a735a5279cadc09a78e66a9f9eb649d553f2f45c530732ccb26ab6e4d01178></a><br><a href="https://snowtrace.io/tx/0xe1364632f25d2c3d3776cfc0b04f8e6ed2e251535c50891039aba7d42c32f563"><https://snowtrace.io/tx/0xe1364632f25d2c3d3776cfc0b04f8e6ed2e251535c50891039aba7d42c32f563></a><br></p> |                                                      |
| Transfer MIM to burn wallet     | <p><a href="https://snowtrace.io/tx/0x25a660d1a65861933c3b9adfb540d432455d9dce6a17fce3ae558ebf1169558d"><https://snowtrace.io/tx/0x25a660d1a65861933c3b9adfb540d432455d9dce6a17fce3ae558ebf1169558d></a><br><a href="https://snowtrace.io/tx/0x6601dc1f8759bff886ea9b22510bb1953caca5e131af13c57178b7a983d0f2ed"><https://snowtrace.io/tx/0x6601dc1f8759bff886ea9b22510bb1953caca5e131af13c57178b7a983d0f2ed></a></p>     |                                                      |
| 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 :&#x20;

* 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&#x20;

###
