2025-12-24 23:23:31

After reviewing a bunch of cryptocurrency projects, I discovered a rather sobering phenomenon: most projects have loud slogans and compelling stories, but when it comes to monetization, their true nature is revealed—ecosystem activity and token value are completely mismatched.

Many projects have technically impressive solutions, but they just can't convert user activity into real cash support. It wasn't until I studied KITE that I saw a design with an exceptionally high logical coherence—using the mechanism of "real income-driven token deflation" to tightly bind network utility and token scarcity together.

**How is it bound? The buyback and burn trick**

The most solid part of KITE's economic model is here: users pay fees for AI proxy services, and all these fees are used to buy KITE on the open market, then directly burned. Sounds simple, right? But the underlying logic is fierce—every real transaction on the network automatically creates buying pressure for the token, while permanently reducing circulating supply.

This is completely different from models built on inflation incentives or pure speculation. Their driving force is endogenous, sustainable, and proportional to business scale, with no water added.

**On-chain data speaks**

Talking about theory is useless; you need to look at the data. In the early stages, KITE has already been running this flywheel. According to on-chain data, the average daily active addresses have surpassed 187,000, indicating the network is truly being used. The user base is there, transaction volume is there, and the deflation mechanism is working continuously—this is the hard support for value.

KITE4.61%

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MidsommarWallet

· 5h ago

Finally seeing a project that doesn't just talk but actually practices; the buyback and burn approach is indeed much more solid than relying solely on inflation to deceive. --- 187,000 active addresses... If this data is real, then there’s indeed something to it. --- To be honest, most projects are just story-tellers; KITE’s closed-loop logic doesn’t sound like a typical rug pull. --- Wait, is real income driving deflation? Isn’t that reverse inflation? How come so many projects haven’t thought of this? --- The more the network is used, the scarcer the tokens become. This logic is indeed sound; now it’s just a matter of whether it can reach profitability someday. --- On-chain data doesn’t lie, but I still need to wait and see how long this flywheel can keep spinning. --- Damn, finally seeing a project with an economic model that’s not just theoretical.

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NoodlesOrTokens

· 6h ago

It's the same old story of buyback and burn. I've seen too many projects talk like this, but in the end, they can't escape the death spiral. Honestly, 187,000 active addresses do show some activity, but I need to observe for another six months before drawing any conclusions. The logic that real revenue drives deflation isn't a problem in itself, but the issue is that most projects don't have any real revenue at all. Here we go again. Stop fooling me, tell a different story. I believe in the deflation mechanism, but can ecosystem activity translate into token price? Still the same old trick.

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WagmiOrRekt

· 6h ago

Yeah, this logic is indeed solid, much more reliable than those PPT projects. Real transactions are directly burned, automatically creating buying pressure. If this flywheel can run smoothly, it would be truly impressive. 18.7K active addresses is not a small number, at least indicating that someone is really using it. Honestly, most projects are driven by a story first, and if there's nothing afterwards, they are doomed. KITE's buyback and burn mechanism at least is self-consistent. But we need to keep an eye on subsequent data; early activity doesn't necessarily mean it can be sustained. Many projects also start off hot and lively. Finally, I see an economic model that isn't just built on incentives stacking. I dislike those with rampant inflation.

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LiquidatedDreams

· 7h ago

Finally, someone has explained this logic clearly. Most projects are just air and stories. The KITE buyback and burn mechanism is indeed solid. Real transaction-driven deflation is the right path, unlike those things built on incentives. 187,000 daily active users is no small number anymore. We need to keep observing how long this flywheel can run. Buybacks and burns again—this logic is more cohesive than I imagined. No wonder it can attract attention. Honestly, this is the first time I've seen this kind of model in the crypto space. If it really can succeed, it might rewrite some things.

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ChainMelonWatcher