🔄 The economic flywheel — a growth loop and cultural OS
The more visitors enjoy Japan, the more demand the ecosystem generates. This supply-and-demand mechanism is the project's beating heart.
The supply-and-demand mechanism of MTC
By the design of Matsuri Protocol, rising real demand creates buy pressure and, combined with a shrinking supply, sets the conditions for value to rise. This is not sentiment — it is a mechanism of supply and demand.
That mechanism runs on the four-step loop below.
| Step | Name | Mechanism |
|---|---|---|
| ① | Real demand emerges | Visitors need MTC to book a guide or to purchase a ticket NFT |
| ② | Buy pressure in the market | MTC is bought at market price on a DEX (decentralized exchange). Strong buy pressure based on consumption, not speculation |
| ③ | Lock & burn | A portion of the MTC used in settlement is instantly locked or burned by smart contract. Circulating supply physically falls |
| ④ | Scarcity rises | Buy demand grows, sell supply shrinks. The shift in supply-demand balance makes each token more scarce |

The vision behind this equation
The bigger picture — the "cultural OS" that lies beyond the flywheel — is explored in detail on the next page, The future MTC envisions.
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