> For the complete documentation index, see [llms.txt](https://docs.tryflox.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tryflox.xyz/concepts/supply-primitive.md).

# The supply primitive

Everything Flox measures on-chain comes from a single event: the ERC-20 `Transfer`. Three cases carry all the signal.

| Pattern       | Meaning                                                     |
| ------------- | ----------------------------------------------------------- |
| `from == 0x0` | **Issuance** — new supply created (a mint or bridge-in)     |
| `to == 0x0`   | **Redemption** — supply destroyed (a burn or bridge-out)    |
| `to ∈ venues` | **Venue inflow** — supply arriving somewhere it can be sold |

Net issuance is issuance minus redemption. Add venue inflows and forward-weighted unlocks, and you have supply pressure — the numerator of the SAR.

## Why this is enough

For a tokenized asset, minting and burning *are* the primary record of supply expanding and contracting. A bridge mint is new sellable supply arriving on the chain; a burn is supply leaving. There is no need to model intent or read off-chain data — the chain already records the moment supply becomes real.

The `venues` list is configuration: the addresses whose inbound transfers count as sell pressure (DEX pools, bridges, market-maker wallets). A transfer onto one of those is supply moving to where it can be dumped.

## What it cannot see

Supply that has not yet reached the chain is invisible. Flox sees supply when it lands, not before. Scheduled unlocks partly close this gap — see [How it decides](/concepts/how-it-decides.md) — but tokens sitting in an off-chain treasury are counted only once they move.


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