Someone on the X timeline was asking about the latest buyback and burn mechanism of pons @ponsdotfamily, so here’s my quick take. Currently, the buyback allocator of pons holds $1.52M (around 563 ETH), but the actual burn efficiency is quite low—0.33 ETH/15 minutes, which translates to about 31.68 ETH/day burn rate. At this rate, it would take nearly 18 days to fully consume the 563 ETH in the buyback allocator. According to Ozzy’s latest explanation, the buyback and burn mechanism of pons works like this: every 5 days, funds from the escrow account are claimed and transferred into the buyback allocator. The transferred buyback funds are then consumed within the 5-day cycle, and the process repeats. Based on the 563 ETH currently in the buyback allocator, the burn efficiency should theoretically be 563/5 = 112.6 ETH/day. So, where’s the issue? The issue lies in the start time of the genesis cycle, which occurred before the most recent claim. This means the budget for the buyback funds in this cycle was based on the remaining balance before the claim, which wasn’t much (the genesis cycle timeframe was likely 10.04–10.09). The budget for the second cycle (10.09–10.14) is based on the $1M+ funds claimed and transferred into the buyback allocator after the genesis cycle. This created a certain degree of misalignment between the buyback funds and the buyback cycle. That’s it.