How the deflation work in YRD?
In terms of YRD the deflation will work slightly different than usual. The amount of YRD coins will increase over the time, but the assets per single YRD will only rise.
For example starting price YRD is 0.1 MATIC ~0.077$. That should give us approximately following assets per 1000 YRD:
After the year lets assume that the underlaying assets price do not changed and farming give protocol 10% ROI average every asset. That mean 5% will go to burn YRD, 3% to increase amount of tokens, 1% on governance YR burn and 1% fees. So we should have following value per 1000 YRD:
What give us the value ~0.084$ assets in vault per single YRD token without any change in price of vault assets!
From this calculation you can see you do not need to carry about total supply in our products, because value per single token will only rise, so it is deflationary schema.