How Can a Decreasing Token Supply Be Modeled in a Multi-Period QTM Valuation?

In a multi-period QTM model, the token supply (M) must be forecast for each period, incorporating the expected burn rate and any new issuance (inflation). The model calculates the expected market cap (M x P) for each period based on the projected network activity (PQ) and velocity (V).

The decreasing M leads to a higher projected price (P) over time, assuming PQ and V are constant or growing. This requires a robust projection of the network's future transaction volume and fee generation.