Transaction Volume Scarcity

Transaction volume scarcity occurs when the protocol's burn mechanism is tied directly to the volume of activity. As more users transact on the network, more tokens are burned, increasing the rate of supply reduction.

This creates a positive feedback loop: more activity leads to more scarcity, which may lead to higher prices, potentially attracting more users. This model aligns the interests of the network users with the interests of the token holders.

It is a powerful way to ensure that the protocol's economic success is tied to its real-world utility and adoption, rather than just speculative interest.