> ## Documentation Index
> Fetch the complete documentation index at: https://docs.binibit.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Utility & Sinks
> Where BINI is used and where it flows back out (8 mechanisms).
The full Tokenomics → BINI Sinks page covers the deflationary mechanics in depth.
## Eight mechanisms
| # | Mechanism | What BINI does | Type |
| - | ------------------- | -------------------------------------------------------------- | ------------------------------- |
| 1 | **Gas** | Pays for every BiniChain transaction | Sink (partial burn / validator) |
| 2 | **Staking** | Locked on Binibit Exchange for 30/90/180/360 days at 160% APR | Lock |
| 3 | **DEX trade burn** | 0.25% of every BaiDEX swap is burned | **Permanent burn** |
| 4 | **Lottery burn** | 20% of every BINI lottery ticket is burned | **Permanent burn** |
| 5 | **Spawn fee** | Agent Token spawn cost is paid in BINI and burned | **Permanent burn** |
| 6 | **Premium / boost** | Token visibility boosts on AgentT Launchpad consume BINI | Sink (partial burn) |
| 7 | **Bridge gas** | Bridges A and B consume BINI for transaction execution | Sink |
| 8 | **LP locking** | wBINI side of BaiDEX pools is locked while LP position is open | Lock |
```mermaid theme={null}
flowchart LR
BINI((BINI
1B fixed))
subgraph Permanent["Permanent burns"]
DEX[DEX trade burn
0.25% per swap]
Lottery[Lottery burn
20% per ticket]
Spawn[Spawn fee
100% per Agent Token]
end
subgraph Locked["Locks · out of float"]
Staking[Staking
30/90/180/360 days]
LP[LP locking
wBINI in V3 pools]
end
subgraph Variable["Partial · variable"]
Gas[Gas
per BiniChain tx]
Boost[Boost / promotion
Launchpad visibility]
BridgeGas[Bridge gas
Bridges A and B]
end
BINI --> DEX
BINI --> Lottery
BINI --> Spawn
BINI --> Staking
BINI --> LP
BINI --> Gas
BINI --> Boost
BINI --> BridgeGas
classDef burn fill:#fef2f2,stroke:#ef4444,color:#7f1d1d
classDef lock fill:#fef9c3,stroke:#ca8a04,color:#713f12
classDef other fill:#e0f2fe,stroke:#0284c7,color:#0c4a6e
classDef token fill:#dcfce7,stroke:#16a34a,color:#14532d
class DEX,Lottery,Spawn burn
class Staking,LP lock
class Gas,Boost,BridgeGas other
class BINI token
```
## Permanent burns (sinks 3, 4, 5)
These three sinks send BINI to a burn address with no recovery path:
```
DEX swap: 0.25% × swap volume (permanent)
Lottery: 20% × ticket revenue (permanent)
Spawn: 100% × spawn cost per AT (permanent)
```
The combination scales with **DEX volume**, **lottery activity**, and **Launchpad adoption** respectively. Each independently creates deflationary pressure.
## Locks (sinks 2, 8)
These reduce **effective float** — BINI exists but cannot trade for the duration:
| Lock type | Duration | Returns when |
| ------------- | ------------------------ | --------------------------------------------------------------------- |
| Staking | 30 / 90 / 180 / 360 days | Stake matures or user unstakes (if early withdraw allowed at penalty) |
| LP wBINI side | Indefinite | LP position is closed |
Locked BINI doesn't reduce total supply, but it reduces sell pressure during the lock.
## Gas (sink 1)
Every BiniChain transaction pays gas in BINI. Depending on chain configuration:
* **Burned** — gas is permanently removed from circulation (Ethereum-style EIP-1559)
* **Paid to validators** — gas goes to validators as block reward
* **Hybrid** — some burned, some to validators
The exact split is documented in the [BiniChain](/binichain/overview) reference.
## Bridge gas (sink 7)
Bridges A and B execute on BiniChain — they consume BINI gas. This is the same mechanism as #1 but worth calling out: **Bridge B** (off-chain BINI → native) consumes BINI, so bridging is itself slightly self-funding from a sink perspective.
## DEX volume → burn projection
At a constant DEX volume of \$V/day with 1% total fee, 0.25% burned:
```
Daily burn (in $) = V × 0.0025
Daily burn (in BINI at $0.12) = V × 0.0025 / $0.12
```
| Daily volume | Daily burn (\$) | Daily burn (BINI) |
| -----------: | --------------: | ----------------: |
| \$100K | \$250 | 2,083 |
| \$1M | \$2,500 | 20,833 |
| \$10M | \$25,000 | 208,333 |
| \$100M | \$250,000 | 2,083,333 |
At \$10M daily volume, the DEX burn alone removes \~76M BINI/year — comparable to Year 4's monthly emission rate.
## Spawn cost → burn projection
If 100 Agent Tokens spawn per day at a hypothetical 100 BINI/spawn:
```
Daily Spawn burn = 100 × 100 = 10,000 BINI/day = ~3.65M BINI/year
```
The exact spawn cost is being finalized.
## Lottery burn projection
Lottery launches in Phase 2 of the Bini App rollout. Once active, 20% of every BINI ticket is burned. Numbers depend on ticket pricing and frequency — not yet finalized.
## Net long-term effect
```
Combined permanent burns:
DEX trade burn + ~76M / year (at $10M daily volume)
+ Lottery burn + TBD
+ Spawn fee burn + ~3.65M / year (at 100/day, 100 BINI/spawn)
─────────────────────────────────────────────────────────
Total permanent burn ≈ 80M+ / year (with healthy adoption)
vs Year 4 emission: 90M / year
vs Year 5+ emission: 0
```
Once adoption hits the targeted volume levels, **annual burns approach annual emission** in years 3-4 and **exceed emission** in years 5+. This is when BINI becomes net deflationary.
## Related
Full mechanism details
The supply side
Source of sink #3 (DEX trade burn)
Source of sink #5 (Spawn fee)