Key Burn Mechanism of the Ultraround Money Token

Core Mechanics

• Circular Burn Loop (CBL) — The protocol deposits Ultraround Money token and WETH into Uniswap v3’s concentrated liquidity pools. As external trades generate fees, a smart contract claims rewards. Of these rewards, 90% of the earned WETH is reinvested into the pool, and the remaining 10% covers gas fees. Claimed fees are always burned (sent to the burn address), reducing the circulating supply of the token over time.

• Dynamic Burn Rate — URM’s Chaos Engine monitors price and market conditions. During price declines, it can accelerate token burning by calling a special “causeChaos” function, releasing stored WETH to trigger rapid transactions. These rapid transactions result in extra token burns that help to counter sell pressure. During price uptrends, it slows down to accumulate more fees, maximizing potential strength for future defense.

Buying Ultraround Money Token

• You can use a DEX like Uniswap v3 (on the Base L2 network) to buy Ultraround Money with ETH (or WETH) at the current market price.

• Your trade happens within a liquidity pool containing Ultraround Money and WETH, provided by both the protocol (the Chaos Engine) and other liquidity providers.

• You do not pay any buy tax or extra burn fee for your trade. The price you get is purely what’s in the pool, minus a tiny DEX fee (not a project fee).​

• This trade generates a normal swap fee (collected by the pool), which is later claimed by the protocol’s own liquidity position.

What happens in the Background?

• The Chaos Engine (protocol smart contract) periodically collects trading fees (earned in WETH or URM) from its liquidity positions (NFTs in Uniswap v3).

• 90% of WETH from fees is put back into the liquidity pool (helping with more trades in the future); 10% goes to a deployer wallet for gas and maintenance costs, never to individuals.

• Any URM gathered from fees is automatically sent to the burn address—permanently removing it from circulation. This process is called the Circular Burn Loop (CBL).​

• Over time, as trading continues, this keeps reducing URM’s supply, making each remaining token slightly more scarce and potentially more valuable for holders.

Selling URM

• When you choose to sell Ultraround Money, you initiate a swap in the same Uniswap v3 pool, trading URM for ETH/WETH at the available pool rate.

• Again, there is no sell tax. The only deduction is the small Uniswap v3 fee.

• Your sale increases volume, which helps the Chaos Engine accumulate more protocol-owned fees. Later, these fees will be claimed and used to burn more URM via the Circular Burn Loop.

• You get your ETH/WETH instantly at market rates (minus swap fees) and are free to move or reinvest it as you wish.​

Competitive Advantage Vs. Other Deflationary Tokens

Feature	Ultraround Money	Other Models
Funding for Burns	Protocol-generated fees (CBL)	User-paid transaction taxes
Effect on Traders	No penalty, frictionless trades	Fee on every trade, reduced activity
Market Responsiveness	Dynamic (accelerates in bear markets)	Static (fixed % per buy/sell)