@michellgracie

Complex buyback and burn mechanisms require supply-demand modeling. Analysts can simulate circulating supply trajectories under various burn schedules, comparing effective inflation rates to benchmarks like BTC. The challenge lies in sustainability: are burns funded by real revenues or treasury reserves? If revenue-backed, models should treat them as yield-enhancing; if not, they risk being cosmetic. Over long horizons, consistent burns tighten supply elasticity, potentially raising valuations. However, complexity often reduces transparency, raising governance discounts. A clean valuation model weighs expected supply contraction against credibility risks, producing net price impact estimates.

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