FT burned ~$900m

FT just burned ~$900m of tokens, reducing FDV to ~$100m. txid

This is a complete non-event. Tokenomics are not one size fits all. FT tokens could only become pseudo-supply via PUT options. There is no other way for tokens to exist. They are either backed by a PUT option, or they can't circulate. And even tokens in a PUT options are in a state of superposition. They are non-circulating until the FT is withdrawn, and even then they are in a position of pending netting, aka when the underlying collateral = the FT price it is bought and burned. Our actual current mcap and thus FDV is currently; ~$44,983.82264 (yes $44k).

My first experimentation with tokenomics was YFI for Yearn finance. The only fair launch in existence. The vision was simple, tokenomics inspired by what eventually became of Bitcoin, removed from its founder and something more robust. So the roadmap was simple, no team tokens, no foundation tokens, no VC/advisor/insider tokens, no raise, nothing, the only tokens were distributed to initial users. It did achieve the goal of distributing and decentralizing the project. It did enable YFI holders to influence the system to the point of making it cash positive. Yet looking at the chart, many would argue it is a failure. It still trades many multiples above the $3 I launched it at, and while the easy answer is it was grossly overhyped during the 2021 defi mania cycle, there are very few places in the last 5 years you could have speculated on the secondary without losing money.

My conclusion, and solution, was that the token is not economically tied to the project. We see this often in tradfi, with large stock bonuses tied to market cap milestones. The answer is fairly simple, incentive alignment.

So with FT there were no free tokens, every token had to be backed by its corresponding PUT option collateral. This backing provided a floor, and this floor allowed us to integrate FT as the settlement rails for the entire project. Every time interest is settled, every time a fee is accrued, it is a buyback for FT.

Further, there are no free team, foundation, or incentive tokens, what is provided to the team, foundation, and incentives buckets is a revenue buyback right. Protocol revenue buys back FT, and this is distributed to team, foundation, and incentives. This further solves the problem of fundamentally good projects that have horrible charts, because they offer "free incentives" in tokens. Aka, team incentives are directly aligned to FT buybacks.

The currently max mcap and FDV is $51.44m (I say max, since if these PUT options divest instead it goes down), why does FDV on aggregators still show $100m, simply because the delta is reserved for potential future PUT options sales.

All this being said, FT FDV was never 1bn. FT FDV was always the net of pending netted tokens + min(0, PUT collateral). This burn should hopefully make that principle clearer.