Secure Water – B2S Protocol

Secure Water Allocation – Burn to Secure Protocol

The Burn to Secure (B2S) protocol allows users to guarantee their future water supply by burning LAK3 tokens. Each token burned secures a specified volume of water annually, ensuring long-term access at a fixed price. Users receive redeemable NFTs representing their water rights, which can be used within The Water Shop to be redeemed as per their allocation, or traded with other participants of the LAKE ecosystem. Magic? Nope, just using the potential of NFTs! Underlying rights of water represented by the NFTs are simply transferrable from one wallet to another.

1. Understanding Token Burn in the crypto world In blockchain terminology, "burning" a token refers to the process of permanently removing it from circulation. This is achieved by sending the token to a specific address from which it cannot be retrieved. Burning tokens can help manage the token supply, creating a deflationary effect that can potentially increase the value of the remaining tokens. In the context of LAK3, burning tokens not only reduces the supply but also secures water allocations for the token holder.

2. Burn to Secure Protocol (B2S) LAKE has implemented a unique native deflationary mechanism for our $LAK3 token called "Burn to Secure." This protocol ensures that $LAK3 holders have the opportunity to become long-term owners of water within our ecosystem, with guaranteed fixed pricing over a period of time with the certainty of delivery.

Users can participate in the B2S protocol by burning a specified number of LAK3 tokens. The burn ratio determines the volume of water secured per burned token. For example, burning 100 LAK3 tokens might secure 100 liters of water per year for the next 20 years.

Once the tokens are burned, the user secures water allocations represented by a redeemable NFT, the NFT-POB. This NFT acts as proof of the user’s right to the specified volume of water, guaranteed over a defined period (e.g., 20 years).

The B2S protocol inherently creates a deflationary pressure on the LAK3 token supply. By permanently removing tokens from circulation, the total supply of LAK3 decreases, which can enhance the value of the remaining tokens over time. This deflationary mechanism benefits all token holders by potentially increasing the scarcity and value of their holdings.

Figure 5 – Secure Water on LAKE Portal (B2S Protocol)

2.1. Detailed Approach and Functionality

• The burn ratio is a critical component of the B2S protocol. It defines the amount of water secured for each LAK3 token burned. This ratio can vary based on several factors, including the availability of water, the source's capacity, and market conditions. For instance, a typical burn ratio might be set at 1 LAK3 token for 1 liter of water per year.

• The concept is simple yet powerful. To secure your ownership and exclusive privileges within the water ecosystem, $LAK3 holders must burn a specific number of tokens to acquire a non-fungible token (NFT). This NFT grants the holder long-term privileges, ensuring a fixed price for water access and establishing a strong commitment to the LAKE ecosystem.

3. The NFT-POB in Action

3.1. The NFT-POB provides several benefits:

• Water Security: Ensures a steady supply of water at a fixed price for the future.

• Tradability: The NFT-POB can be traded within the LAKE ecosystem

• Transparency: Tracks water allocations transparently and immutably on the blockchain.

• Flexibility: Allows holders to redeem their water allocations to multiple addresses, providing convenience and adaptability.

The NFT-POB tracks the ownership of water allocations until extinction of the associated rights. Holders can redeem a fixed supply of water at a fixed price from the associated source per year, that will be delivered to their address of choice; each request can be fulfilled to a separate address according to a set frequency and up to the full amount associated with the tokens burnt. The supply is guaranteed at the secured price to the NFT-POB hodlers.