When we mine bitcoins, we burn electricity, which cannot be extracted back.

The CAPS game economy operates using its own ERC-20 token, and all collection items can be created by burning that token (except for the first collection, which is sold for native network currency).

When you use caps in the game, they gradually lose quality, similar to wear and tear in the physical world. Erased caps are actually more valuable than unused ones (when exchanged for tokens). Factors like gas price or token price can influence the frequency and volume of newly produced tokens in a converse manner.

There will be 34 collections with 100,000 caps in each of the 4 networks, totaling 13,600,000 caps that can be minted to create up to 21,000,000 CAPS tokens. These tokens can then be used to purchase one of 13,200,000 caps (excluding the first collection).

According to the law of supply and demand, the market will fill any shortages and create surpluses based on the preferences of buyers and sellers. For instance, while some users may prefer to hold caps in perfect condition, others may choose to put in the work and destroy them to get tokens.

This concept is referred to as full-cycle because users can mint fresh ERC-20 tokens, which can then be used to purchase NFTs that can be burned to obtain ERC-20 tokens.