Token Inflation or Deflation

Zeebu's approach to token supply management is both fixed and dynamic. The protocol has a hard cap of 5 billion ZBU tokens, eliminating the risk of unchecked inflation. This immutable supply provides long-term predictability for token holders and network participants.

The protocol's built-in burning mechanism adds a deflationary pressure that responds to market conditions. As telecom transactions occur, a portion of the ZBU used is redirected to a holding address. Quarterly, these accumulated tokens undergo a conditional burn. The burn rate flexes based on ZBU's market price – accelerating when prices dip and easing when they rise. This responsive approach helps stabilize token value, counteracting potential market volatility without risking excessive deflation.