@eradefi
The Deflationary Dynamics of $CAP
$CAP has a fixed 1,000,000,000 max supply. Deflation is funded solely by organic protocol fees: platform activity pays for market buybacks, and purchased tokens are permanently burned 🔥
The Big Burn on Sept 2, 2025 removed 400,000,000 $CAP (40%), creating a deflationary baseline.
Monthly fee‑funded burns continued through 2025 (June–Dec): June ~3M; July 1.5M; Aug 2M; Sep 1.2M; Oct 1.2M; Nov 1M; Dec 0.7M.
As of Dec 30, 2025, 410.6M $CAP (41.06%) are permanently removed 📉
This persistent supply reduction creates buy‑side pressure and can benefit holders if demand holds. Demand drivers include staking rewards, AI‑agent payments, and VIP access 🤖
Key risks are market volatility and dependence on protocol revenue. Outlook: continued monthly burns scaled to organic growth, aligning long‑term holder and protocol incentives.
For full details 👇
https://paragraph.com/@[email protected]/the-deflationary-dynamics-of-dollarcap
#DackieWarriors @capminal.eth
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