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# 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.

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## 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.

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## 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.