Burning
Last updated
Last updated
Burning
A portion of collected fees will proposed to be burned; that portion is a function of the amount of SSV staked in the protocol: where:
B - The amount burned
γ - adjustable hyperparameter
s - staked SSV.
As a result of burning fees and decreasing IM rewards, the net inflation of $SSV decreases in upcoming years.
The chart gives possible examples of how net issuance may change.
The conservative line assumes a smaller percentage of staked SSV tokens and fee growth, while the aggressive line considers a larger one. Under these assumptions, we can see that the aggressive scenario will make SSV deflationary before the end of 2027, while the probable scenario will do the same in 2028 and the conservative one in 2029.