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The buyback and barreling mechanism is the core deflationary engine of the OIL protocol. It creates continuous upward price pressure by permanently removing OIL from circulation.

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How It Works

  1. Protocol collects revenue from mining fees and winnings
  2. Treasury accumulates FOGO for buybacks
  3. Buyback operation swaps FOGO for OIL via Valiant
  4. OIL is barreled: 100% is permanently burned
  5. Supply decreases → Price pressure increases

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Revenue Sources

  • 10% of deployed FOGO → Treasury (buyback fund)
  • 10% of winnings → Treasury (buybacks)

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Buyback Operation

Treasury FOGO is automatically swapped for OIL via Jupiter aggregator. Buybacks run hourly (if treasury has sufficient balance) or can be triggered manually.
Track all buybacks here: oil.supply/explore

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Barreling (Burning)

“Barreling” refers to the permanent burning of OIL tokens. When buybacks execute:
  • 100% of purchased OIL → Permanently burned (supply reduction)
Burned OIL cannot be recovered and creates continuous deflationary pressure.