$LA from the Perspective of Token Economics: The Value Conservation Logic Behind a 3% Inflation Rate
To assess token value, one must penetrate beyond price to understand the supply-demand framework. The total supply of $LA at 1 billion is not a static figure; its design of a “staking-reward-burning” closed loop creates a dynamic balance: the 3% annual inflation rate is solely allocated for node maintenance rewards, while 20% of cross-chain transaction fees will be directly burned. As ecological activity increases, the amount burned is expected to exceed the inflation amount, forming a “deflationary spiral.”
From the data, the current staking rate has reached 35% (approximately 350 million locked), with an actual circulating supply of only 650 million. If cross-chain demand grows, assuming an additional 1 million verification requests per month (each consuming 0.1 $LA), the annual burn amount could reach 12 million, far exceeding the 30 million annual inflation (1 billion × 3%), leading the circulating supply into a net reduction phase. In this supply-demand structure, a price of $0.3 appears more like an underestimation during the “ecological cold start period.” When the burning mechanism begins to dominate the changes in circulation, the price will transition towards $1.5, fundamentally reflecting the value return of token scarcity.
