♾️The Perpetual Loop
At the center of SquareStrategy lies its defining innovation — the Perpetual Loop, a self-reinforcing market cycle that transforms every trade into motion.
Unlike token systems that inflate supply or require external liquidity, this mechanism recycles market activity into three fundamental actions:
Buy → Relist → Burn.
A simple cycle. A perpetual economy.
⚙️ 1. How It Begins — The Flow of Fees
Every trade on a linked NFT collection activates a royalty mechanism. A 10% royalty fee is automatically split and routed on-chain:
8% → Accumulation Pool (the treasury)
2% → Burn Flow (deflationary engine)
These flows represent energy — the kinetic force that fuels the Strategy. The more a collection trades, the more energy enters its ecosystem.
💰 2. Accumulation — The Treasury in Motion
The accumulation pool collects ETH until it reaches an execution threshold. Once sufficient liquidity is gathered, the system begins to act.
Identify the floor on trusted marketplaces
Buy the lowest-priced NFTs from the linked collection
Relist them at 1.2x their acquisition price
Each of these transactions is on-chain, auditable, and verifiable. The treasury doesn’t speculate — it executes rules, not emotions.
🔁 3. Relist — Creating Market Momentum
After buying floor NFTs, the Strategy re-lists them at a controlled premium, usually ×1.2 above the purchase price.
This has three critical effects:
Supports the floor — removing cheap supply and reducing sell pressure
Generates controlled profit — creating net-positive ETH flow
Preserves price realism — avoiding artificial pumps or volatility
When these NFTs sell at the premium, the Strategy converts static capital into active profit, reinforcing the loop without external tokens or liquidity games.
🔥 4. Burn — The Proof of Deflation
Profits from the relists, along with the dedicated 2% burn allocation, are automatically used to buy and burn Strategy NFTs.
Each burn is on-chain and permanent — a visible act of deflation that reduces total supply forever.
This burn process is more than symbolic; it’s mathematical scarcity: Every cycle increases demand (via floor buys) while reducing supply (via burns). Liquidity strengthens, while circulating NFTs become rarer.
♻️ 5. The Feedback Effect
Over time, this motion compounds naturally:
More trades
→ Larger treasury
→ More floor buys
→ Higher market confidence
→ More trades again
It’s a positive feedback loop where activity feeds itself.
Because no tokens are issued and no liquidity is shared, the system cannot be inflated or drained — it simply converts activity into value.
📊 6. Visualizing the Loop
Here’s a simplified diagram:
This diagram is the heartbeat of every Strategy — a perpetual motion machine that doesn’t mine, inflate, or print; it breathes liquidity.
🧩 7. Why It’s Perpetual
Because there’s no dependency on emissions, staking, or liquidity mining, the loop sustains itself indefinitely as long as trading exists.
It doesn’t need new users — it only needs market activity, which naturally arises in any living NFT ecosystem.
Each loop functions like an economic cell — alive, autonomous, and constantly recycling its own energy.
🌌 8. The Philosophy Behind the Motion
Every market seeks equilibrium. SquareStrategy doesn’t fight volatility — it uses it.
When volume spikes, liquidity flows in and burns accelerate. When volume slows, accumulation pauses, preserving capital.
The system adjusts dynamically, like breathing: inhale liquidity, exhale scarcity.
That’s why it’s called the Perpetual Loop — not because it moves forever by force, but because it moves forever by design.
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