Burning and Recycling

Token Burning

HolmesAI will burn tokens to reduce the circulating supply. The sources of the burnt $HOL tokens include:

• Commissions from computing power deals

• Slashed collaterals of malicious nodes

• Early exit penalties for computing nodes, where part of their TRR incentives are forfeited.

Token Recycling

$HOL has a hard capped total supply. Continuous buyback and burning of tokens could lead to excessive deflation. Therefore, some of the burnt tokens need to be redirected into the treasury for future re-emission.