Phase 2b: Perpetual Supply Reduction Mechanism

Beyond the Genesis Burn, KGeN 2.0 introduces a perpetual supply reduction mechanism designed to scale alongside business growth.

A portion of the contribution margin generated from KGeN's AI business is allocated toward the purchase of $KGEN from the open market. Purchased tokens are then permanently removed from circulation.

The mechanism follows a simple flow:

AI Revenue ↓ Contribution Margin ↓ Buyback $KGEN ↓ Token Retirement ↓ Reduced Circulating Supply

As AI revenue grows, buyback and supply reduction activity grows proportionally. This transforms token reductions from isolated events into a recurring value-accrual mechanism.