2.0% of all $ENTITY traded are burnt in the Blackhole. The more that is traded, the more get put into the hole causing the blackhole to grow in size, larger and larger through self fulfilling Auto-Compounding, reducing the circulating supply and keeping the Entity protocol stable.
The other benefit to an everlasting burn of circulating supply is that due to its deflationary nature, each $ENTITY token get a higher value, therefore increasing the individual value.

The Blackhole helps the protocol to:

  • Prevent circulating supply to get out of hand, and becoming unmanageable.
  • Offset positive rebase interest printing.