$TST - Deflationary Model and Token Price Increase Mechanism Through Burning Events

The TST token has quickly attracted community attention thanks to its unique burning mechanism: 100% of the revenue from the LP liquidity fee is used to burn tokens, creating a strong deflationary model. With a huge trading volume and a bi-weekly burning schedule, many investors wonder: Will TST ever run out of tokens? And what will happen as the supply continues to shrink?

1. Current Market Situation Current price: $0.1832Market cap: $174 millionEstimated circulating supply: Based on the formula:

This is the initial context, showing that after the first burning phase, the circulating token amount has decreased significantly. 2. Token Burning Mechanism Currently The operation of the TST burning system is as follows: LP Fee: 5% on all trading volume is converted into LP revenue. Burn 100% LP revenue: Every two weeks, all LP revenue will be used to burn tokens. Example First Burn Trading volume: 1 billion tokensLP revenue 5%: 50 million tokens burnedSupply after burning: reduced from 950 million to about 900 million tokens. Note: In the original example, the figures may vary depending on the initial mechanism. This initial strong burn has reduced the circulating token supply from the start, marking the beginning of the deflation process. 3. Why Will the Burning Speed Naturally Slow Down? a. Decreasing Trading Volume of Tokens The story of investors: Not all tokens are traded; many investors hold their tokens for the long term. Impact on LP revenue: When the actual trading supply decreases, LP revenue also decreases, leading to fewer tokens being burned each cycle. b. Token Price Increases as Supply Shrinks Market dynamics: With the same market capitalization, if the supply decreases, the token price will increase. For example: If the market capitalization remains at $174 million, but the supply decreases from 950 million to 500 million tokens, the token price will increase from $0.1832 to around $0.348. Consequence: As the price increases, each transaction will involve fewer tokens, thereby reducing LP revenue and slowing down the burning process. c. Deep Liquidity Decrease Impact on LP: When the circulating token supply decreases, the amount of tokens in the liquidity pools (LP) also decreases. As a result, large transactions can cause significant price fluctuations. Traders tend to reduce trading volume to avoid affecting prices, thereby reducing the amount of tokens burned through LP revenue. 4. Forecast For The Next Burning Period (21/2) Trading volume ( from 8-12/2): 3 billion tokensEstimated LP revenue: 150 million tokensPrediction: The next burn will consume approximately 150 million tokens from the supply. As a result, after two burning sessions, the circulating supply may decrease from 950 million to around 800 million tokens. However, at the same time, the token price is likely to increase, reducing the number of tokens traded and thus slowing down the burning process in the future. 5. When Will the Supply Contraction Stop? ( Natural balance: When the number of trading tokens decreases due to price increases, each burn will remove fewer tokens. This creates a natural balance: the supply never decreases to 0 but moves towards a balanced state between low supply and high prices. Maintain liquidity: Despite large trading volumes, when prices rise, the number of trading tokens is always restricted, helping to maintain the existence and stability of the supply over time. 6. Conclusion: TST's Hyperinflation Elimination Model The economic model of TST has created a self-balancing inflation reduction loop: Strong initial burn: Helps quickly reduce circulating supply. Price increases as supply decreases: When the supply contracts, the token price will rise, reducing the number of tokens traded. Natural slowing down of burning speed: Although LP revenue may be large, the number of tokens burned will gradually decrease over time. As a result, early investors may benefit from the increasingly shrinking supply and rising token prices, while long-term investors will see their asset value increase over time. If TST can maintain this trend, it may become one of the most successful deflationary tokens in the market—provided that there is always enough liquidity to support transactions. DYOR! )BTCStateReserves $TST {spot}(TSTUSDT)