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The $DENAR token contract is live; distribution has not happened yet. The revenue lines below are real — two are accruing on-chain today — and the buyback engine connects to them at generation.
What makes the burn design credible is that the first engines are not a roadmap — they are running today.

The revenue lines feeding the burn

Three of six switch on the day dUSD does — which is why the dollar ships after the markets, and why its launch is the single biggest event in $DENAR’s cash-flow design.

The BACKED carve-out

Before anything reaches the $DENAR burn, 10% of all protocol fees — every line above, live from today — buys and burns BACKED, the stock-backed floor asset Denar is structurally partnered with. The remaining 90% is the pool the $DENAR buyback draws from at token generation. Two burns, one order of operations, no overlap.

The flywheel

The lines are not independent — they compound through one loop:
  1. Borrowing in the markets generates fees (line 1) and liquidation flow (line 2).
  2. Every dUSD minted puts reserve dollars to work in those same markets — deepening lending supply, which grows borrowing capacity, which grows line 1.
  3. The dUSD reserve earns on the whole float (lines 3–4), and its pool trades (line 5).
  4. All of it meets in the burn. More protocol usage — any product, either side of the book — means fewer $DENAR in existence.
There is no version of Denar growing where the burn does not accelerate. That is the whole design.

Why buyback-and-burn, and not yield

Two reasons, one economic and one philosophical:
  • Economic — a burn compounds for every holder identically, without asking anyone to stake, claim, lock, or chase a rate. It is the only distribution that costs holders zero actions and zero risk decisions.
  • Philosophical — Denar’s docs never print an APY that wasn’t realized, and the token follows the same rule. A burn is not a promise about the future; it is a record of revenue that already happened, visible at the token contract for anyone to audit.