People keep asking about burns.
Not just with Lorenzo. With everything. Burn equals scarcity. Scarcity equals price. That mental shortcut is everywhere.
With Lorenzo Protocol, that shortcut does not really work right now.
BANK’s token economics are not broken, but they are also not deflationary. And pretending otherwise leads people to watch the wrong signals.
Where BANK Supply Actually Stands
BANK is not fully out in the market yet. That matters more than most discussions around price.
Circulating supply is a bit over five hundred million. Max supply is around two point one billion. That gap is not theoretical. It is future supply that can still show up.
Because of that, fully diluted valuation is much higher than current market cap. This is not a warning. It is just reality. Anyone ignoring FDV is choosing not to look.
As more tokens unlock over time, supply pressure exists by default unless something offsets it.
The Truth About Token Burns
There is no active burn.
Not hidden. Not automatic. Not quietly running in the background.
There is no transaction burn. No scheduled burn. No hard-coded deflation in the contracts. Any future burn would require governance to vote it in.
Past mentions of burns were ideas, not execution. Token trackers do not show burn activity because there is nothing to track.
This is not negative. It is just the current state.
Why No Burn Changes How You Should Think About BANK
When a token burns supply automatically, part of the value story runs on mechanics.
BANK does not have that right now. So everything shifts.
Supply increases over time as incentives unlock and vesting progresses. That does not mean price must fall, but it means demand has to work harder.
Governance matters more. Any supply control comes from votes, not code. That introduces uncertainty during stress, when people least want uncertainty.
Usage matters the most. Without deflation doing any lifting, BANK needs staking, governance participation, and protocol access to justify holding.
This is not worse. It is just different.
What Actually Matters More Than Burns
Lorenzo is not sitting still while people debate token mechanics.
The protocol is building structured Bitcoin products designed to make idle BTC do something. If those products grow, BANK gets pulled into real usage instead of speculation.
There is also the slow move toward stable and real-world yield exposure. That attracts capital that does not flip in and out every week. That kind of activity supports usage, not hype.
Security work matters too. Audits and monitoring do not change supply, but they reduce the chance of things breaking. Less breakage means more willingness to participate.
None of this shows up in burn charts. All of it matters more.
What Is Actually Worth Watching
Burn talk is loud because it is easy.
Better signals are quieter.
Governance proposals that change emissions or fee allocation. Unlock schedules tied to incentives and contributors. Usage across Lorenzo’s products. Liquidity depth on exchanges when the market is not excited.
These things tell you where pressure comes from and where demand might form.
The Simple Take
BANK is not deflationary today. Acting like it is would be a mistake.
Supply can expand. Dilution risk exists if growth slows. At the same time, Lorenzo’s focus on Bitcoin liquidity and structured yield gives BANK a chance to earn demand instead of manufacturing scarcity.
Right now, BANK behaves like a utility and governance token. Nothing more. Nothing less.
If that ever changes, it will be because governance chose it and usage justified it. Not because someone promised a burn.
