Sustainable Economics

BOUND operates as the protocol's governance token with direct exposure to protocol revenue through systematic supply reduction mechanisms. The token's value proposition centers on sustainable tokenomics where protocol success directly translates to supply reduction, creating natural price appreciation for remaining holders through mathematical scarcity rather than arbitrary token emissions.

Unlike traditional governance tokens that rely on inflationary rewards or speculative value, BOUND creates deflationary pressure through three distinct revenue streams that permanently remove tokens from circulation.

1

Conversion Fee Burning:

Users paying DFY ↔ DFY+ conversion fees directly in BOUND tokens (to receive the 25% fee discount) trigger automatic burning of those tokens. This creates immediate deflationary pressure with every protocol interaction while providing tangible utility value to BOUND holders.

2

APSS Management Fee

The protocol charges a 1% management fee on all arbitrage revenue generated by the Atomic Peg Stability System. These funds are used to systematically purchase BOUND tokens from the market and burn them, creating consistent buying pressure independent of individual user behavior.

3

Treasury Yield Generation

The protocol converts 80% of BOUND public sale proceeds to DFY+ positions, permanently allocating all generated yields to supply reduction. This mechanism represents a breakthrough in governance token design. Rather than treating token distribution as a one-time event, the protocol transforms the majority of raised capital into a perpetual value engine. The yields generated from these DFY+ positions create ongoing support for governance token stability without requiring additional protocol revenue or new token emissions.

Through these mechanisms, BOUND benefits from both transactional activity and the protocol's long-term yield generation, creating multiple layers of deflationary pressure that support sustainable governance economics.