# Scarcity We use simple scarcity mechanics to incentivize the betterment of the collection as a whole. As we introduce new images, we sometimes offer the option to burn or trade existing NFTs from within the collection. This gives collectors an option to trade up, and encourages the removal of weaker images for more desirable ones. Additionally, the floor price of the collection may **require** that existing art must be burned for new art to enter the collection. #### **Supply Expansion Model** How it works: If the required floor price is not met, new drops can only enter the supply state by burning art from the existing supply. Additionally, max supply only increases if both the Max Supply and the corresponding Required Floor Price are met together. *A rapid floor price increase does not trigger an automatic supply increase.* {% embed url="" fullWidth="false" %} Max supply = NFTs + paired NFTs. {% endembed %} #### Supply Expansion Model in Degen Detail The collection implements a model that links max supply expansion to floor price achievements. *Floor price requirements* follow a carefully designed mathematical model based on the Golden Ratio (φ ≈ 1.618), a fundamental constant found throughout nature and aesthetics. *Potential supply expansion* follows a harmonic distribution. Each era gets a weighting following the formula 1/n where n = era. Here's how it works: Each era n gets weight = 1/n: Level 2: 1/2 = 0.500000\ Level 3: 1/3 = 0.333333\ Level 4: 1/4 = 0.250000, etc. Sum = 1/2 + 1/3 + 1/4 + ... + 1/13 = 2.180134 Formula: Units = (weight ÷ sum) × 14,436 Example for era 2: (0.500000 ÷ 2.180134) × 14,436 = 3,311\ \ This approach protects holders and creates an elegant balance between value and scarcity. {% hint style="info" %} In a practical sense, the supply max doesn't imply we will release new art pieces to meet the max. We may never increase the supply to ERA 2 regardless of floor price. It only serves to provide some assurances against rapid supply increases and to indicate our intention to grow the value (*outcomes may vary and future value is not assured*) of the collection in fiat terms. The supply schedule can be adjusted (up or down) with a supermajority vote of NFT holders. [See terms](/cryptoart/the-project/terms.md). {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://cryptoart.gitbook.io/cryptoart/the-art/scarcity.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.