The ZKC economic model is one to watch. This is becoming more than just a market for financialization of compute power, but creating a computational Infra as a service for advanced cryptographic computation (ZK Proofs) that blockchain desperately needs. To sum up, call it, The “AWS for ZK Proofs”. AWS: Provides compute/storage for web applications. Boundless: Provides ZK proving for blockchain applications. But then what does this mean for $ZKC from an economic standpoint? ZKC has a fascinating deflationary demand model that's fundamentally different from most tokens. While the deflationary model is a simple one, tokens are finite and bound to shrink with time; the total number of tokens that will exist is already capped. Tokens are reduced from circulation through buybacks and/or burn. This gives room for what economists term the horizontal scaling breakthrough. Unlike blockchains (which hit consensus bottlenecks), Boundless scales linearly: => 1 proving node = X throughput => 10 proving nodes = 10X throughput => 1000 proving nodes = 1000X throughput. No consensus needed between provers - they work independently and get rewarded for valid work. ___________________________________________________ ~ Supply-Side Pressure ~ Unlike typical tokens where demand comes from speculation or utility payments, ZKC demand is structurally tied to proving capacity. This is how As more blockchain ecosystems integrate Boundless: Provers must stake ZKC proportional to their proving power. More proving clusters = more ZKC locked as collateral. This creates forced scarcity - tokens are removed from circulation based on actual economic activity. ~ Revenue Model Creates Compounding Demand ~ The dual-sided marketplace is economically elegant: Proof requestors pay in native tokens (ETH, SOL, USDC). Provers must stake ZKC as collateral. See ZKC as a payment token beyond. It's way more than that. It's the engine of Boundless, backed by sophisticated economic support. => Collateral as Quality Assurance => Sophisticated burn mechanism that creates a deflationary effect. When provers fail to deliver: 50% of collateral is burned forever (reduces total supply) 50% becomes bounty for other provers (redistributes value). This means network failures actually make ZKC more scarce. => Proof of Verifiable Work Model (POVW) instead of POW. ZKC demand grows in proportion to the aggregate value of all blockchain ecosystems utilising Boundless, encompassing not only transaction volume on a single chain but also dApps. ~ Network Effects & Value Accrual ~ Each new blockchain integration creates what we refer to as a multiplicative effect. 1. New ecosystem joins → more proof demand 2. Since more provers are needed → more ZKC will get staked 3. Reduced circulating supply → price pressure 4. Higher ZKC value → more attractive staking rewards 5. Attracts more provers → can support even more ecosystems, and the network keeps expanding. ____________________________________________________ In essence, they're subsidizing the entire ZK system to use Boundless as an infrastructure. Additionally, @boundless_xyz tokenomics features a strategic token unlock schedule to control inflation. Economic Sustainability categorized into phases: Phase 1: Subsidize adoption with ecosystem funds. Phase 2: Network effects take hold, driving organic demand growth. Phase 3: ZKC collateral requirements explode as proof volume scales. Phase 4: Supply scarcity drives price appreciation. Phase 5: Higher ZKC value attracts more professional provers. Phase 6: More proving capacity enables larger ecosystems. Phase 7: Cycle repeats at exponentially larger scale. The 75% ZKC emissions to provers create sustainable economics, as provers receive payment in both native tokens (immediate revenue) and ZKC (long-term appreciation), making it economically rational for them to participate, even if ZKC appreciates significantly. However, this has a recursive effect, which I deem positive—proving that under Boundless, it will get cheaper, creating an economic environment that will attract more capacity. Early years: Higher inflation funds ecosystem growth. Later years: Lower inflation as network effects take over. Bottom line: ZKC's value should theoretically scale with the total economic value secured across all integrated blockchain ecosystems, creating a "picks and shovels" play on the entire multi-chain economy. This is boundless in IRL execution—a comparative numerical analysis between Boundless Season 1 & 2, showing extensive growth in the cycle. Courtesy of @Himess__ Boundless isn't just building a protocol; they're building the infra layer for the entire ZK-powered future of computing. Every privacy application, every cross-chain bridge, every scalability solution, and every AI verification system could run on Boundless. ZK is the Engame.