I want to start a conversation around the buyback/burn model of value accrual for the CAP token - specifically around the burn aspect. Most of my critiques and ideas are inspired by this article:
Essentially, the critique is this: “… buybacks are a fine way to socialize profits to capital-token holders, but burning limits the network’s ability to reinvest in itself.”
Burning tokens is a waste of an extremely important resource - the ability to create incentives and increase capitalization through issuance. Following the model laid out in that article will provide us with a programmable positive feedback loop - the buyback shares profits with holders, and there is a constant source of issuance without diluting overall supply.