[Grayscale Warns Token Inflation Could Erode Holder Rewards] Golden Finance reports that on October 24th, digital asset management company Grayscale released a new analysis warning that the returns generated by cryptocurrency applications could be diluted by the ever-increasing token supply, thus offsetting holder rewards. Research Head Zach Pandl proposed a "yield-oriented valuation framework" on October 21st: minus costs paid to liquidity providers, such as fees from trading and lending activities, to obtain protocol returns, then compare this to market capitalization. Holder yield = staking rewards + buybacks - new token issuance, divided by circulating market capitalization; adjusted yield = total returns / market capitalization - circulating supply inflation. Grayscale points out that new token issuance and unlocking can offset buybacks and staking rewards. Among the top 100 tokens by market capitalization in the FTSE Grayscale Financials Crypto Sector, HYPE has the highest holder yield at 8.0%, while CRV is at the bottom at -5.5%; CAKE has the highest adjusted yield at 14.4% (data as of October 20th). Grayscale distinguishes between buybacks (reducing circulating supply) and burning (reducing total supply). Bitcoin is valued separately as a digital commodity, similar to "digital gold".