In addition to the hardcap set on GRAIL, we also implemented some deflationary mechanisms in order to reduce the total supply.
When converting xGRAIL to GRAIL, if the vesting duration isn't the maximum, the xGRAIL:GRAIL ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the GRAIL excess will automatically be burned.
For instance, if a user redeems 1000 xGRAIL with the minimal 15 days vesting duration, he will obtain a 1:0.5 ratio, and receive 500 GRAIL in the end.
That means a total of 1000 - 500 = 500 GRAIL will be burned during the process.
When deallocating xGRAIL from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be of 0.5%.
The corresponding GRAIL amount will automatically be burned.