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Deflationary mechanisms are important for cryptocurrency projects to maintain a healthy balance between supply and demand of their native tokens. Upfront Protocol has implemented a unique deflationary mechanism that involves using 40% of the funds collected in the Protocol Treasury Fund for token buybacks and burns of our native
$UPtoken. This buyback program creates a scarcity of
$UPtokens in circulation, leading to an increase in the token's value over time. By reducing the supply of
$UPtokens, we can create a self-sustaining cycle where the value of the token increases due to scarcity, which in turn incentivizes more users to hold onto their
$UPtokens, further reducing the supply in circulation. This deflationary mechanism not only provides economic benefits for our users but also helps to create a strong and sustainable ecosystem for Upfront Protocol.