• •Kmad.ai outlines a framework for measuring token capital efficiency by comparing circulating supply growth against network usage metrics.
• •The analysis suggests that startups often inflate circulating supply prematurely, which can dilute value and stifle organic adoption.
• •The framework remains theoretical; it is unclear if investors have adopted these specific efficiency metrics as a standard valuation tool.

Kmad.ai has released a framework evaluating 'token capital efficiency,' which measures the alignment between token emissions and actual protocol utility. While traditional startups monitor burn rates and runway, web3 founders frequently struggle with the disconnect between speculative liquidity and user activity. The framework highlights how excessive early token releases can create artificial market pressure without corresponding growth in network usage. Whether this model gains industry traction depends on whether venture capital firms shift their focus from peak market cap to sustained, usage-backed token velocity.