No it will never cap out
Well that would mean that 50% of the holders sell their LEO to the POL. The question is, at what price
If LeoDex yield is going up (affiliate revenue is increasing), then the POL will have more USDC each day to buy LEO with
This continually drives the price of LEO higher and higher which makes it increasingly difficult to buy a majority of the supply
If you continue to game this out, the Protocol will continue to acquire more and more LEO. This simply means a larger % of the total affiliate revenue will be perma buying LEO each day, which means the price continually goes up
At some point, people realize "hey maybe I should buy and hold this LEO thing where the price continually goes up and there is real yield being generated by LeoDex.io, LeoDex Mobile App, LeoKit, LeoMerchants and INLEO.io"
They will HODL as sLEO and therefore not sell (or perhaps sell when the price is something ridiculously higher than they paid)
IMO this would be a great problem
it would be a great problem