# Deflationary Dynamics

FORE’s maximum supply is capped at 1,000,000,000 FORE, although the circulating supply will never come near that number. Via activity on the protocol, a portion of all FORE tokens utilized on the protocol are removed from circulation forever: these tokens cannot be recovered or recreated. As activity increases on the protocol, the total available supply to support that activity is proportionally declining, ultimately driving a supply shortage for the token. 

The deflationary nature of FORE token is directly proportional to activity on the protocol. FORE is removed from circulation primarily via two core functions: 

* **Market Participation:** 1% of the value of all markets are permanently removed from total supply (or burned). This ensures that greater activity on the protocol benefits all token holders: the decrease in supply increases the scarcity of FORE, thus increasing its demand. 
* **NFT Minting:** In order to mint an NFT, a user must “lock” an amount of 1,000 FORE. This amount is burned and removed from the circulating supply permanently. As such, every new NFT mint decreases the supply of FORE.

Through these methods, we are able to continuously reduce supply as protocol activity increases to drive a supply shortage for the token. 

<figure><img src="https://lh4.googleusercontent.com/Q8NY-olMKgcRXjfxzXYFXRMA5kXA8BNdDS65f6TSVPrxegFVWr41D04todg9r4A_PVDPrsXKRImiU5TCxmhD3cy62GMhxBwn_6lMXThuYF9tn2oH8x95LTajPbzONKMWOw4DPOe6dy4V_0vMlunr8NXdf2f3R9wEhk3G7zfuXsaHz5NpYfoW81byODJPnQ" alt=""><figcaption></figcaption></figure>


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