Adaptive Supply Cap

The maximum supply of 4.3 billion BOUND tokens represents a ceiling, not a target. Unlike traditional models with fixed emission schedules, BOUND only enters circulation when backed by actual protocol revenue and approved by governance. That income must first pass through an on-chain allocation mechanism, which determines how much of it can be used to issue new BOUND tokens.

As a result, large portions of the 4.3 billion cap may remain permanently locked, effectively reducing the long-term total supply.

This introduces an adaptive supply ceiling that responds to market and governance conditions while preserving the protocol's economic sustainability. In essence, the 4.3 billion token cap is a hard upper limit, not a supply target and the actual circulating supply may be significantly lower, based entirely on real usage, governance decisions, and protocol performance.