# Circulating Supply Management

At the core of InsanityBets protocol lies a commitment to $IBET holders, particularly those with a long-term perspective. The protocol's effectiveness stems from a multifaceted approach to managing the circulating supply, leading to a stable market for $IBET. The strategies include:

* <mark style="color:purple;">**Burning and Staking**</mark><mark style="color:purple;">:</mark> By eliminating $IBET from circulation and incentivizing staking, the protocol counters potential inflation from $esIBET or $sIBET, stabilizing the trading environment.
* <mark style="color:purple;">**Incentive for Purchase**</mark><mark style="color:purple;">:</mark> While not promised, users may feel encouraged to buy and stake $IBET not just for reduced fees but knowing it has such mechanisms in place.
* <mark style="color:purple;">**Rewarding Holders**</mark><mark style="color:purple;">:</mark> $esIBET, rewarded to $sIBET holders, is automatically staked, accruing rewards and contributing to supply control.
* <mark style="color:purple;">**Vesting**</mark><mark style="color:purple;">:</mark> With a 9-month vesting schedule, $esIBET is temporarily sidelined from the market, easing sell pressure and supporting price strength.

> <mark style="color:purple;">Long-term stakers benefit from an auto-compounding yield by holding on to their $esIBET, promoting the longevity of investments.</mark>

* <mark style="color:purple;">**Fee-Induced Burning**</mark>: The protocol further reduces supply by burning $IBET collected as trading fees in the $IBET/ETH liquidity pool and from creating $bIBET derivatives. Through these deliberate actions, InsanityBets ensures that reducing the circulating supply of $IBET not only increases demand but also sustains higher market prices, underpinning the value for its holders.


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