Burning Mechanism and Floor Price

The Floor Price refers to the potential lowest price that Power can reach. Due to our pricing mechanism and the fee-burning mechanism, the Floor Price of Power will gradually rise from its initial price (0.001 ETH for Topic Power and 1 Topic Power for a Subtopic).

Specifically, the potential lowest price occurs when all users sell all their Power. This means all circulating Power have been injected into the virtual liquidity pool.

According to the pricing formula, the price for Power at this point is $0.001 \times \left(\frac{TotalSupply}{TotalSupply - BurnedSupply}\right)^2$. As trading progresses, the Burned Supply increases, leading to a rising Floor Price from 0.001 ETH.

For Subtopic Power, as it's paired with Topic Power, their potential lowest price rises from 1 Topic Power.