Overview
Wild Goat Coin is built as a closed economic loop — a system where trading activity directly funds deflationary pressure, without intervention or discretionary control.
This page explains WGC’s economic design and why the protocol is structured to benefit participants while remaining resistant to manipulation.
Self-Sustaining System
Most token projects rely on active management: teams making decisions about treasury spending, liquidity incentives, or market-making arrangements. These introduce trust assumptions and potential points of failure.
WGC takes a different approach.
The core loop:
- Users trade WGC on decentralized exchanges
- Trading generates swap fees (1% on Base & HyperEVM)
- Fees are automatically routed to buyback mechanisms
- Buybacks acquire WGC from the open market
- Acquired WGC is permanently burned
- Total supply decreases
This loop runs continuously, autonomously, and cannot be stopped or redirected. The more WGC is traded, the more supply is removed — regardless of market conditions.
Participant Incentives
WGC is designed so participants can pursue their own interests without coordination or trust in any intermediary — and in doing so, reinforce the system rather than extract from it.
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Traders → access transparent, on-chain markets – swap fees are deterministic and automatically routed to buybacks and burns
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Holders → no dependence on treasury decisions, emissions, or promises – supply contraction is mechanical and enforced by immutable rules
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Arbitrageurs → profit from price discrepancies by correcting inefficiencies – tightening price convergence and generating additional fees feeding deflation
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Liquidity Providers → deploy capital permissionlessly, while core liquidity persists without incentives or coordination, removing reliance on market makers or centralized control
Each participant acts independently under the same public, immutable rules. No role has privileged access, and no single actor is required for the system to function.
System Dynamics
WGC operates under fixed, verifiable rules — contracts are immutable, fee rates are set, and buyback logic is enforced on-chain.
However, the outcomes they produce aren’t static. As market conditions shift, the system responds automatically:
- Supply reduction varies with trading volume
- Core liquidity composition adjusts with the relative USD pricing of ETH and HYPE
- Bid wall positioning responds to price movement
No participant controls these outcomes. They emerge from independent actors responding to the same public signals — producing a system that is:
- Fair — no participant has privileged access or control
- Transparent — all rules and flows are publicly verifiable
- Unpredictable — no dominant strategy or static equilibrium
- Self-correcting — different mechanisms respond under different conditions
The protocol functions identically whether anyone is paying attention or not. Trading generates fees, fees fund burns, and supply contracts — independent of sentiment, governance, or coordination.
Economic Philosophy
Modern monetary systems typically follow Keynesian principles — central authorities actively managing money supply, interest rates, and policy. This requires ongoing trust in institutions.
Austrian economics offers an alternative: sound money with fixed or scarce supply, free from central manipulation. Bitcoin emerged from this tradition, introducing a hard cap on supply.
WGC extends this further. Where Bitcoin’s supply stops growing, WGC’s supply actively shrinks — trading fees flow to buybacks, acquired tokens are burned, and no intervention is possible. The protocol’s immutable rules give rise to spontaneous order: market activity funds supply contraction without central coordination.
WGC’s economic design can be summarized as:
A trust-minimized system where trading activity funds its own deflationary pressure through immutable, permissionless mechanisms — creating aligned incentives for all participants while eliminating manipulation vectors.
For technical details on specific mechanisms, see:
- Buyback & Burn — Chain-specific implementation details
- Immutability — How administrative controls are permanently disabled
- DEX Liquidity — Core liquidity structure and dynamics