🔥Burn Mechanism (Deflation)

For each successful recovery:

1% of the recovered assets are burned in $KNOX.

Burns are made to the on-chain stable burn address.

Burns are limited to a reserve of 15M $KNOX (10% of the total supply).

This system ensures that the circulating supply decreases as transactions increase, preserving the token's value.

🔥 $KNOX Burn and Fee Distribution

A fixed $KNOX fee is paid when the recovery process is initiated. From this fee:

💰 Transaction fee paid for recovery:

50% is transferred to the DAO treasury,

50% to the protocol development fund (company multisig).

🔥 The on-chain USDT equivalent of the recovered assets is calculated, and 1% of this value is burned in $KNOX.

$KNOX is 10% of the total supply (15,000,000 $KNOX).

📌 Burning is done using the allocated share for burning, not the user's assets.

🔐 Security and Transparency

✅ Recovery plans are generated solely with your on-chain signature.

✅ We don't hold your funds; we simply enforce your rules on-chain.

✅ There is no DAO, server, KYC, or email system.

✅ No direct deductions are applied to your assets.

✅ Burns are made solely from the allocated funds for burning.

✅ All burns are sent to a fixed on-chain burn address.

✅ The process is designed to be fully automated, decentralized, and irreversible.

💸 Pricing

When a recovery is initiated on KEYNOX, the user pays a fixed $KNOX fee.

The burn and distribution of this fee are specifically designed for the protocol's sustainability and deflationary nature.

🔥 Burn Mechanism

After the recovery process, the on-chain USDT equivalent of the recovered assets is calculated.

1% of this value is taken from the 15 million $KNOX reserve allocated for the burn and burned.

In other words, the burn is not made from the user's fee or wallet, but solely from the protocol's "burn pool."

The burn is sent to the on-chain fixed burn address, making it irreversible.

Every burn transaction performed on the KEYNOX protocol is clearly visible on-chain.

📌 10% of the total supply (15 million $KNOX) is reserved solely for burn purposes and is withdrawn from this pool in a controlled manner.

💰 Recovery Fee Distribution

The fixed $KNOX recovery fee charged to the user is distributed as follows:

Component Share Description

🏛️ DAO Treasury 50% Community contribution funds, governance incentives, airdrops

🧱 Protocol Development 50% Technical infrastructure, operational expenses, long-term growth

📌 The fee operates separately from the burn. The user only pays a fixed one-time fee.

✅ Summary:

🔒 No direct deductions are ever made to the user's wallet assets.

🔥 Burns are made solely from the protocol's dedicated 15M $KNOX burn reserve.

💰 The recovery fee goes 50% to the DAO and 50% to the protocol developers.

⚙️ The entire process is on-chain, transparent, and automated.

🧠 This structure ensures:

$KNOX remains deflationary

User Safety is protected

The DAO and team are financially supported in a sustainable manner.