How it works

How this works:

  1. First part remains the same: (d × t × sqrt(c)) × (log₁₀(d)/20) This calculates the initial burn amount based on daily activity

  2. Second part: (T × Z - CB) × (1 - CB/(T × Z))

  • (T × Z - CB) represents remaining tokens that can be burned

  • (1 - CB/(T × Z)) is a scaling factor that approaches 0 as we get closer to the cap

  • As CB approaches T × Z, this part of equation naturally decreases the burn rate

  1. min[] function ensures we always take the smaller value between:

  • The activity-based burn calculation

  • The cap-adjusted maximum possible burn

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