> For the complete documentation index, see [llms.txt](https://v2tech.noahlabs.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://v2tech.noahlabs.io/3.the-mathematical-model-of-the-twin-token-system-and-value-flow/3.2-ypuls-high-speed-circulation-and-hyper-deflation-engine.md).

# 3.2 YPULS: High-speed Circulation and Hyper-deflation Engine

The core value of YULS (subcoin) lies in its efficiency and ultra-deflationary nature.

The Value Funnel Effect (The Value Funnel):

XPULS transfers value to YPULS through transaction taxes, creating a one-way funnel.

<img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FUIJcuNaeUuVzUlLqWmJt%2Fimage.png?alt=media&amp;token=a39c9ee1-11c8-448d-92f7-ac218e1a292d" alt="" data-size="line"> The YPULS's destruction <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FuJwbcTC7YgRRwnSWjx07%2Fimage.png?alt=media&amp;token=6c3164bc-7c09-4c87-922f-fd0c79a5d3d4" alt="" data-size="line">mechanism is designed <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FftZEBGHOotXJgezwrzbG%2Fimage.png?alt=media&amp;token=17cf0c81-795a-40ab-9d98-37aca19d4ba3" alt="" data-size="line"> to overcome the dilution effect of high circulation speed on the price.

Set as <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FCq7EG4cH32tbvUrQ7SiB%2Fimage.png?alt=media&amp;token=e3f41984-7a3e-4442-8bc9-f2beddc8e5e0" alt="" data-size="line">the net destruction rate of YPULS <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2F0twYbopHtW3p6gxq0Vx1%2Fimage.png?alt=media&amp;token=fe2a9299-48b8-4a2a-8fa4-5c2c8396665a" alt="" data-size="line">. When the rate exceeds YPULS's natural issuance rate (e.g., game production), YPULS will theoretically enter a deflationary spiral.

<img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FpY9tXM6qjwof8DbXr7cq%2Fimage.png?alt=media&amp;token=4cad0406-73d4-4911-bb9c-ed75eb6ad52a" alt="" data-size="line"> Mathematical model: The contribution <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2Fa0nn9UyeV8eov4K2qxXy%2Fimage.png?alt=media&amp;token=4fefcafa-6f3e-402e-beb7-0d039d9df9bd" alt="" data-size="line"> of XPULS trading <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FPOoSp7JIYVg3MTQSv1Xc%2Fimage.png?alt=media&amp;token=931459de-a26c-49ad-a063-5fcfdb08d77f" alt="" data-size="line"> volume to YPULS destruction volume.

<img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FaTTwp8oARoDeQCttvCFi%2Fimage.png?alt=media&amp;token=da7c0d81-64ba-47ba-a4cf-b89bcf321e97" alt="" data-size="line"> This means that the more XPULS is traded, the faster YPULS gets burned off. XPULS stores value while YPULS fuels network activity, creating a perfect symbiotic cycle.
