@zhuugeliang
Zama FHE - Tokenomics - Deflationary Model @zama
➣ protocol generates revenue by charging for its core services => revenue indirectly drives the token's value
➣ 100% Fee Burn - critical feature - every $ZAMA token paid in fees is forever removed from circulation (burned)
➣ Math => more transactions = more fees = more tokens burned = reduced supply
➣ Zama also rewards token incentives for staking but if tokens burned > tokens minted from staking => Zama becomes deflationary
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How it All Works Together 👇
▫️Adoption Grows => developers build confidential dapps on Zama
▫️Usage Increases = users transact on these dapps, generating fees
▫️Tokens are Burned = the $ZAMA paid in fees is permanently burned, reducing supply
▫️Network Security Strengthens => to support the growing network, more operators stake $ZAMA, locking it up
▫️Stakers are Rewarded = stakers receive a yield from inflation (newly minted tokens)