Mechanics

The $SMILEE Token Mechanics

$SMILEE is about a continuous buyback & burn strategy, powered by a connected ecosystem of projects all working toward this very same purpose: Swappee, Beranames and the upcoming Incinerator.

$SMILEE is more than a token, it’s a culture coin, driven by the memetic strength of the Steady Teddys, often considered the 7th unofficial rebase of Berachain (and hopefully, the official one).

Unlike many others, $SMILEE is not an incentive token and it will not end up as mere dust in your wallet ready to be swapped.

$SMILEE is not about staking nor lockup, your tokens remain fully liquid, entirely yours: holders are free to move them however they wish.

$SMILEE is the token that makes it simple: let’s take a closer look at each component and how everything connects.

$SMILEE, as mentioned above, features a strong burn dynamic across all its main components - becoming first and foremost its utility.

It starts with the Caveau system, a new mechanic designed for the Token Generation Event, where up to 30% of the overall $SMILEE supply could be burned within the first month - more details coming soon.

This burn logic continues through the Smilee ecosystem protocols: Swappee and Beranames.

Both will use 100% of their revenues to buy back and burn$SMILEEfrom the open market at random times, preventing frontrunning by bots or malicious actors.

Another key element of this strategy is the Smilee Incinerator, a system built to maintain constant buying pressure on$SMILEE.

Right after the TGE, Smilee Finance will launch the Incinerator and submit an RFRV (Request For Reward Vault) to whitelist it.

Once approved, a process that usually takes about a week, the Incinerator’s Reward Vault will be created and will begin collecting BGT.

This marks an important milestone in $SMILEE’s design. The Smilee validator will allocate part of its own rewards to send BGT emissions to a dedicated contract, which will automatically buy $SMILEEon the open market and burn it on a regular basis.

Moreover, bribing could also be an option if Smilee chooses a more aggressive supply-burning strategy.

This creates a continuous buy pressure through the Proof of Liquidity mechanism, while gradually reducing the total supply week after week.

All burn data will be publicly visible through a dedicated dashboard in the Smilee dApp, showing how many $SMILEE tokens have been burned by the Incinerator over time.

The dashboard is expected to go live one to two weeks after the Incinerator’s whitelisting. The Smilee Incinerator will officially go live once the whitelisting process is complete, which typically happens about one week after the TGE, following approval by the Foundation’s Guardians.

As we said, $SMILEE to ashes, the program that contributes to the gradual decrease in the token supply, is only the first of many utilities to come.

Liquidity providers in the main wgBERA/$SMILEE pool will receive a continuous yield in$BGT(Bera Governance Token) through Smilee’s core ecosystem, powered by the active validator and bribe management handled by the protocol’s treasury, the gFund.

Importantly, $SMILEE will not be used as an incentive token to attract validators willing to emit $BGT in our featured pools. This is a key factor in reducing sell pressure, since validators often claim incentive tokens and sell them directly for BERA or stablecoins. By design, $SMILEE avoids this cycle and remains free from unnecessary downward pressure.

The only ways to obtain $SMILEE are to buy it or swap your dust on Swappee, where a zero-fee swap to $SMILEE will be introduced shortly after the token launch.

We believe that offering active token incentives in a product built around yield optimization through wgBERA would dilute the essence of $SMILEE. The Smilee Foundation may introduce future initiatives, but for now, there is no reason to inflate the circulating supply by adding more incentives that could increase sell pressure. Simplicity is the defining feature: hold $SMILEE, watch the total supply decrease over time through its burn mechanics, and supply liquidity together with wgBERA to earn a consistent flow of BGT.

$SMILEE is for those who believe-e.