🔥Burn Mechanism

Once delegators have earned CIT via the aforementioned methods, delegators can choose if they want to earn more native rewards for the project they delegate to (i.e. ATOM from the previous example) or hold CIT to accrue value of Coaction Network’s validator ecosystem. Delegators are given the option to either accept or reject a validator's standard commission rate by respectively holding or burning CIT. Here are the two options:

• If a delegator wants to get back some of the commission a validator charged, the delegator burns CIT. The exact amount of CIT burned will determine how much of a rebate on commission fees the delegator wants. The increase in rewards is referred to as the Boosted Staking Rewards ("BSR") and the new effective rate is referred to as the Boosted Commission Rate ("BCR").

• Alternatively, if the delegator is more interested in holding CIT, then they will not burn any, and the full amount of commission revenue is retained by Coaction Network's Treasury

This tradeoff allows delegators to choose between participating in the upside of Coaction’s Network or receiving the lowest commission rate on their delegated assets.

Validators can independently set what percentage of their commission revenue will be forwarded to the Treasury. This provides validator operators the optionality to scale their Coaction Network participation up or down however they see fit.

Note: A pre-existing smart contract is entered between the validator and Coaction Network which determines ahead of time what amount of their commission revenue will be paid to Coaction Network’s Treasury. That means part of the commission revenue always stays with the validator and the other part is split between rebates from CIT burning and going to the Treasury.