5.2 Token Economics (Deflation Model)

Zara Token adopts a deflationary model with a fixed total supply. This model ensures the scarcity of ZARA tokens, which may increase their value over time. The following mechanisms contribute to the gradual scarcity of ZARA tokens:

• Token burning through transaction fees: A portion of transaction fees within the Zara Network is burned, removing ZARA tokens from circulation.

• Continuous repurchases: The Zara treasury continuously repurchases ZARA tokens from the open market, further reducing the total supply.