The misconception about FLIP's "burnonomics" lies in focusing solely on whether the token is deflationary. While the protocol's mechanism of using a percentage of swap fees to buy and burn FLIP from the platform creates deflationary pressure, this effect is inherently self-limiting.
As the buy-and-burn mechanism drives up the token price, it naturally reaches an equilibrium point where the deflationary pressure balances out. This is simply market dynamics at work. The true economic value driver isn't the temporary deflationary periods, but rather the behavior of validators who typically retain a portion of their rewards rather than liquidating them entirely.
Therefore, when analyzing FLIP's tokenomics, the key metric to focus on is the delta of buy/sell pressure and cumulative token delta (CVD), which is further enhanced by the continuous buy-and-burn mechanism working in the background.
That's Burnonomics.
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