# Burn & Drop

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**Burn & Drop Process**

* Definition: By burning a specific token (e.g., A token), another token (e.g., M token) is airdropped to the user.
* Purpose: Mitigates potential downward price action and reduces the total number of tokens in the market.

**Example of Burn & Drop:**

1. 1.User has 1000 A tokens valued at 1 USDT each.
2. 2.The price drops to 0.8 USDT each.
3. 3.User chooses to burn their 1000 A tokens.
4. 4.They are airdropped M tokens in return.
5. 5.The number of A tokens in circulation decreases.
6. 6.M tokens' price drops due to the sell-off, triggering another Burn & Drop process for M tokens.
7. 7.M token holders can now burn their tokens to receive another token, D, in return.

**Unique and Additional Features**

* The Burn & Drop process has endless loops and can continually burn and drop so long as it has partner projects that are willing to take part in that instance of burning and dropping (They are not forced and can chose to participate or not. Depending on the syndicate)
* In the future, the Difines team will also integrate an X metric that will monitor social media such as X to determine if potential price volatility will be coming to a token and preemptively act.

**The Syndicate**

* Represents a consortium of diverse, independent projects.
* Each entity remains independent but collaborates for mutual financial stability and market value enhancement.
* Various types of syndicates:
  * New Project Syndicate
  * Gaming Syndicate
  * Web3 Project Syndicate
  * Top 100 Project Syndicate

**Syndicate Interaction with Burn & Drop**

* **Type A Rule**: Specific projects under this type engage in the Burn & Drop process with various other projects. If one crashes, the entire market is supported.
* **Type B Rule**:
  * Projects can participate without a designated position.
  * Only projects with tokenomics clearances and listings in both centralized (CEX) and decentralized exchanges (DEX) can participate.
* **Type C Rule**: Collaboration with DIFINES. There are conditions for participation, and Burn & Drop processes may occur for a limited time or in limited quantities.
* **Type D Rule**: Refers to acquisition syndicates. This rule concerns the percentages of tokens in wallets and how Burn & Drop processes are implemented.

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