4. Token Economy Model

The economic model of the SOAI token aims to maintain the stability and value of the token while encouraging user participation in the platform ecosystem. Here are the mechanisms for token reduction, buyback, and deflation:

Token Reduction Plan The SOAI platform has implemented a mechanism that halves the production of SOAI tokens every six months. This mechanism primarily enhances the scarcity of the tokens, which could potentially increase their value and encourage early participation and investment, as obtaining new tokens becomes increasingly difficult over time. This not only attracts more investors but also incentivizes holders to keep their tokens long-term, thereby helping to stabilize or even increase the market price.

Buyback Mechanism and Token Burn

• Buyback Trigger Conditions: When the SOAI platform's monthly revenue reaches a certain scale (e.g., $1 million), the token buyback mechanism is triggered. A certain percentage (e.g., 10%) of the platform's revenue will be allocated to buybacks until the monthly buyback amount reaches 20% of that month's revenue.

• Buyback Execution: The SOAI platform will entrust professional market makers to buy back SOAI tokens on the open market at the current market price. The buyback will strictly adhere to relevant laws and regulations and minimize the impact on secondary market prices.

• Token Burn Arrangements: The SOAI tokens purchased will be regularly destroyed, with the records publicly available on the blockchain. The number and frequency of tokens to be burned will be dynamically adjusted based on the buyback amount and market performance to ensure a transparent and controllable process.

• Buyback Ceiling: To prevent excessive destruction leading to a sharp reduction in the total number of tokens, a cap has been set on token buybacks. When the circulation of SOAI tokens drops to 50% of the initial issuance, the buyback and destruction mechanism will automatically stop to maintain relative stability in token supply.

Regular token buybacks and destruction not only stabilize the token's market price and mitigate market volatility risks but also provide long-term benefits to token holders, creating a positive cycle of growth and mutual benefits with the platform. This is conducive to the sustainable development of the token economy.

In addition to the basic operational mechanisms mentioned above, the SOAI platform has also integrated the entire process of token distribution and buyback destruction into the blockchain system, ensuring rule enforcement is automated and transparent through smart contracts, with real-time supervision by the entire community. We also welcome community members to participate in discussions to optimize mechanisms, pooling ideas to build a healthier and more mature token economy.

The innovative design of the SOAI token distribution scheme and buyback destruction mechanism not only highlights the SOAI platform's commitment to sustainable development of the token economy but also emphasizes our value of putting user interests first. In the future, under the guidance of this mechanism, the SOAI platform will embark on a wonderful journey of the new emotional economy with all token holders. Let us join hands with the SOAI token, with the original intention of writing a new chapter in the emotional economy; with the path of development, to create a beautiful future of emotional value together!