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docs/core-concepts/burning.md

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+---
+sidebar_position: 2
+---
+
+# 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
+
+| 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
+
+1. **Starting Condition**
+   There are 1 billion TFT tokens in circulation, each worth $0.10, giving a $100 million total market cap.
+
+2. **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.
+
+3. **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.
+
+4. **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.
+
+5. **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.
+