Technical
Buyback & Burn
How WGC’s core liquidity captures fees and how those fees are intended to reduce supply over time.
Introduction
Wild Goat Coin incorporates deflationary mechanisms designed to reduce circulating supply over time by capturing trading fees from three core liquidity pools:
Trading Pair | DEX Protocol | Chain | Swap Fee | Pool |
|---|---|---|---|---|
WGC/flETH | Uniswap V4 / Flaunch | Base | 1.00% | |
WGC/WHYPE | Hyperswap V3 | HyperEVM | 1.00% | |
WGC/WETH | Uniswap V3 | zkSync Era | 0.01% |
Base
On Base, WGC is integrated with Flaunch Protocol through the WGC/flETH liquidity pool.
This pool applies a 1% swap fee, collected in ETH via the flETH representation. Fees generated from trading activity are routed through Flaunch’s protocol infrastructure, which is designed to deploy accumulated ETH into market-based buybacks over time.
These buybacks acquire WGC from the open market, with purchased tokens removed from circulation according to the protocol’s burn mechanics.
This integration allows WGC to participate in an automated, market-driven buyback system without requiring active treasury management or custodial control.
(Further details on Flaunch’s internal mechanics are documented in Flaunch’s official documentation.)
HyperEVM
On HyperEVM, WGC maintains a WGC/WHYPE liquidity pool with a 1% swap fee.
Liquidity provider tokens for this pool are permanently locked via HyperSwap’s Burn & Earn vault, ensuring the liquidity itself cannot be withdrawn. Swap fees generated by the pool accrue in WHYPE and WGC.
A custom contract-based mechanism is planned to route these accrued fees into a buyback-and-burn process, enabling fees to be used to repurchase WGC from the market and permanently remove it from circulation.
This mechanism has been conceptually scoped and is technically feasible, but is not yet active. Until deployment, fees remain within the locked liquidity framework.
zkSync Era
On zkSync Era, WGC maintains a WGC/WETH liquidity pool configured with a 0.01% swap fee.
This pool is deployed with permanently locked liquidity and no mechanism to collect accrued fees. As a result, trading activity in this pool effectively removes both WGC and ETH from circulation over time.
Rather than routing fees through an active buyback process, this design implements a passive deflationary effect, where value is continuously locked at the protocol level without requiring additional contracts or intervention.
Design Philosophy
Across all environments, WGC’s buyback and burn approach is guided by a consistent set of principles:
Fees are derived from WGC trading activity
Liquidity is treated as permanent infrastructure
Deflation is structural, not emission-driven
No reliance on centralized treasuries or discretionary control
Different chains employ different implementations, but all are designed to align trading activity with long-term supply discipline.