Burning
Token Model Overview​
Token burning permanently removes tokens from circulation. When a percentage of real revenue is used to buy and burn tokens, it directly reduces the total supply, creating scarcity. If demand stays constant or increases, the token price naturally rises.
Base Assumptions​
Below is an example when a TFT would be worth 0,10, 100 USD based on revenue and burn rate.
| Parameter | Value |
|---|---|
| TFT Price (initial) | $0.10 |
| Market Cap (Fully Diluted) | $100,000,000 |
| Burn on Revenue | 10% |
| Revenue over 4 years | $1,000,000,000 |
| Tokens Burned | 1,000,000,000 |
| Tokens Left | 0 |
| Market Size Reference | Cloud & AI markets worth several trillion USD |
Conclusion: There can never be 0 tokens in a functioning economy, so the price will keep rising as supply decreases.
Step-by-Step Logic​
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Starting Condition There are 1 billion TFT tokens in circulation, each worth $0.10, giving a $100 million total market cap.
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Revenue-Driven Burn Ten percent (10%) of all generated revenue is used to purchase tokens on the open market and destroy them. This converts real economic activity into direct buying pressure.
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Cumulative Effect Over four years, with $1 billion in revenue, $100 million is used to buy TFT at market prices. At $0.10 per token, this burns the full 1 billion tokens.
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Deflationary Result As supply decreases, each remaining token represents a larger claim on the network’s total value. Even if only part of the supply is burned, the reduced float and consistent demand drive higher prices.
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Price Appreciation Mechanism
- Demand from users and investors remains or grows.
- Supply falls due to the burn.
- The balance of supply and demand shifts upward, increasing token price to maintain total market value.