6.6 Advantages and Limitations

Advantages:

• Automatic minting simplifies Coinhour generation; 50% burn enhances scarcity.

• Collateral + algorithmic combination improves stability.

• High-price exchanges incentivize consumption; non-cashout reduces fiat run risks.

Limitations:

• Automatic minting may cause oversupply, requiring enriched consumption scenarios to support demand.

• Collateral pool scale needs continuous expansion.