Emissions Tied to Real Yield
BOUND operates under a revenue-backed emission model where every token in circulation reflects earned economic value, not speculative inflation. Unlike traditional governance tokens with arbitrary minting schedules, BOUND emissions are strictly tied to actual protocol revenue, creating a direct correlation between token creation and real economic activity. The protocol allocates its revenue through a dual mechanism designed for long-term sustainability.
New Reward Emissions
10% of protocol revenue backs new token emissions, rewarding governance participants proportionally to their contribution. This mechanism ensures rewards are derived from actual protocol performance rather than inflationary token minting, aligning participant incentives with protocol growth.
Deflationary Mechanism
90% of protocol revenue is allocated to systematic buyback and burn operations, permanently removing BOUND tokens from circulation. This deflationary pressure creates sustained value accrual for remaining tokens, establishing a direct correlation between protocol success and token scarcity without diluting existing holders.
This structure ensures that BOUND emissions are always capped by actual protocol performance rather than predetermined schedules. New tokens only enter circulation when backed by real revenue, with a minimum baseline emission to maintain continuity during low-revenue periods. The result is a sustainable supply framework where token creation directly reflects protocol success, aligning governance distribution with genuine value creation.
Note:
To ensure continuity and protect the system during periods of low or no revenue, the protocol includes a minimum emission parameter (Rₘᵢₙ). This parameter guarantees a baseline level of BOUND rewards, preventing total reward depletion and maintaining a minimum APY for participants. It is designed to preserve protocol stability and keep staking incentives active even under adverse market conditions.
The BOUND tokenomics model addresses fundamental issues plaguing traditional governance tokens. Most DeFi tokens follow predictable cycles: initial hype drives price appreciation, followed by gradual decline as protocols fail to generate sustainable value backing for token holders.
Key Differentiating Factors:
Revenue-Backed Burning: All burning operations funded by real protocol revenue
Perpetual Yield Engine: Public sale proceeds create ongoing burning regardless of protocol growth
Utility-Driven Demand: Fee discounts create natural acquisition pressure
Democratic Distribution: No team preference in revenue sharing
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