The Deflationary Nature of $TST : How the Burn Rate Slows and the Price Rises
The TST token has captured significant attention due to its 100% burn of liquidity pool (LP) revenue, creating an aggressive deflationary model. With massive trading volumes and scheduled burns every two weeks, many wonder: Will TST run out of tokens? What happens as supply continues to shrink?
While it may seem like TST could burn itself out of existence, the reality is that the burn rate will naturally slow down, leading to a price increase as the token supply decreases. Here’s why.
Current Market Situation
Current Price: $0.1832
Market Cap: $174 million
Total Supply Estimate:
Given that Market Cap = Price × Circulating Supply
Estimated Circulating Supply = $174M ÷ $0.1832 ≈ 950 million tokens
With the first burn event already completed, we can analyze how the burn rate will evolve over time.
How the Burn Works Today
LP Fee Percentage: 5% of all trading volume is collected as LP revenue.
100% of LP revenue is burned every two weeks.
First Burn (After 2 Days on the Market):
Trading Volume: 1 billion tokens
LP Revenue (5% of Volume): 50 million tokens burned
Supply After First Burn: 950 million tokens
This aggressive burn reduced the circulating supply immediately. However, as the supply decreases, the burn rate will naturally slow.
Why the Burn Rate Slows Over Time
1. Fewer Tokens Available for Trading
Not all tokens are actively traded—many holders store their tokens, reducing the number that actively contributes to trading volume.
As the circulating supply decreases, the number of tokens traded also declines, leading to:
✅ Lower LP revenue generated
✅ Smaller burns over time
Even if USD trading volume remains high, the number of tokens being traded will shrink, which limits how much can be burned.
2. Token Price Will Increase as Supply Shrinks
Since market cap = price × circulating supply, a lower supply with the same market cap leads to a higher price per token.
Example:
If the market cap remains at $174M and supply drops from 950M to 500M tokens, the price would increase to $0.348 per token.
At this higher price, each trade involves fewer tokens, which reduces the burn rate further.
This self-correcting mechanism prevents total depletion of the token supply.
3. Liquidity Pool Depth Shrinks
As more tokens are burned, liquidity decreases, making larger trades cause bigger price swings. This leads to:
✅ Increased volatility
✅ Higher price resistance
✅ Slower burning due to fewer available tokens
As fewer tokens are available in LPs, traders naturally adjust their behaviors, making the remaining supply last longer.
What Happens for the Next Burn on February 21st?
So far, we know:
✔ Trading Volume (Feb 8-12): 3 billion tokens
✔ Estimated LP Revenue: 150 million tokens
✔ Next Burn (Feb 21st) Projection: 150 million tokens burned
This means that after two burns, the supply could shrink to around 800 million tokens.
However, as supply shrinks, price will rise, and the burn rate will begin to slow down naturally.
When Will the Supply Stop Shrinking?
The total supply will never reach zero because:
Fewer tokens will be traded at higher prices
Each burn will remove fewer tokens over time
A natural equilibrium will be reached with low supply and high price
Even if TST continues to see billions in USD volume, the number of tokens burned per event will decline as price rises.
Final Thoughts: A Hyper-Deflationary Model
The TST tokenomics model creates a self-balancing deflationary loop:
✅ High initial burns rapidly reduce supply
✅ Price increases as supply drops
✅ Burn rate slows down over time, preventing total depletion
This means early adopters benefit from a shrinking supply and rising value, while long-term holders see their tokens gain purchasing power over time.
If $TST maintains this trajectory, it will likely become one of the most successful deflationary tokens in the market—so long as liquidity remains sufficient for trading.
