# Buy-Back and Reward Distribution Policy

Petso is committed to enhancing the value of its $PET token ecosystem while ensuring long-term sustainability and user engagement. This Buy-Back and Reward Distribution Policy outlines how a portion of subscription fees will be utilized to repurchase $PET tokens and distribute rewards within the app.

**1. Objectives**

* Stabilize and support the value of $PET tokens.
* Create incentives for user engagement within the Petso app.
* Foster a self-sustaining ecosystem fueled by recurring subscription revenue.

**2. Allocation of Subscription Fees**

* A fixed percentage (10%) of all subscription fees collected from users will be allocated specifically for the $PET token buy-back program.
* The percentage allocation will be reviewed quarterly to ensure optimal tokenomics and ecosystem health.

**3. Token Buy-Back Mechanism**

* The allocated funds will be used on a periodic basis (e.g., monthly) to repurchase $PET tokens from the open market.
* Buy-back operations will be conducted transparently, and relevant data will be published on Petso's official communication channels.

**4. Reward Distribution Framework**

* Repurchased $PET tokens will be redistributed within the Petso app in the following ways:
  * **Loyalty Rewards:** Tokens will be awarded to active subscribers and engaged users.
  * **In-App Activities:** Users completing specific milestones, challenges, or activities will receive token rewards.
  * **Referral Program:** Tokens will be offered as incentives for referring new users to the platform.

**5. Transparency and Reporting**

* A detailed quarterly report will outline the buy-back volumes, distribution statistics, and impact on the ecosystem.
* Audits may be conducted periodically to ensure the integrity of the buy-back and distribution mechanisms.

**6. Policy Adjustments**

* Petso reserves the right to adjust the percentage allocation and distribution mechanisms based on market conditions and business objectives.
* Any significant changes will be communicated transparently to the Petso community.

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**Conclusion** This Buy-Back and Reward Distribution Policy is designed to ensure that Petso's subscription-driven revenue directly contributes to strengthening the $PET token ecosystem and fostering long-term engagement from users.
