Supply Compression Effect
While Vault growth expands total value, supply compression amplifies it per holder. Every $GRAIL token represents fractional exposure to the total TVL — and as supply decreases, each remaining token gains a larger share of that real-world backing.
Automated Frequency & Threshold Logic
The buyback-and-burn process is fully automated by the smart contract, with multiple triggers per day based on real-time fee accrual.
Threshold-based triggers: Every time the burn reserve reaches a specific threshold amount, a buyback event is executed.
Continuous cycle: The threshold from fees executes multiple buyback and burn events within 24 hours.
Impact on Holders
Each time tokens are burned, the total circulating supply decreases while the Vault’s total value (TVL) remains the same or higher. That means the value backing each token increases, effectively concentrating equity among existing holders.
For holders, this creates three direct benefits:
Increased per-token Vault exposure: each $GRAIL represents a larger claim on the Vault.
Rising scarcity: with fewer tokens in circulation, demand pressure intensifies.
Compounding effect: ongoing burns layer continuously, making long-term holders the biggest beneficiaries of protocol growth.
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