Burn Subsidy

# What is Burn Subsidy?

The Burn Subsidy is a key feature of TAN’s tokenomics, where 50% of the block reward is allocated to the Subsidy Layer. This layer incentivizes users to burn their TAN tokens, reducing the circulating supply and increasing scarcity. Users who burn tokens receive a 20% reward over a one month cliff and 12-month vesting period on his Initial amount , encouraging long-term participation. This mechanism fosters a deflationary environment, supporting the value of the token while promoting network stability. Ultimately, the Subsidy Layer ensures balanced token distribution, strengthens the network economy, and drives the overall growth of the ecosystem.

• Allocation and Tokenomics: 50% of each block reward is allocated to the Subsidy Layer, ensuring it has enough resources to maintain the integrity and sustainability of the network’s tokenomics, supporting long-term health.

• Incentivizing Token Burning and Scarcity: The Subsidy Layer encourages users to burn their TAN tokens, reducing the circulating supply and increasing scarcity, which in turn supports the token’s value over time.

• Incentive for Burning Tokens and Long-Term Participation: Users who burn tokens receive a 20% reward over a one month cliff and 12-month vesting period on his Initial amount , promoting long-term participation and gradual involvement in the ecosystem.

• Strengthening Network Economy and Token Utility: By encouraging token burning and rewarding participants, the Subsidy Layer fosters a deflationary environment, boosts token demand, and strengthens the overall network economy, ensuring healthy ecosystem growth.