$Semi is backed by a semiconductor stock MU (micron) and their goal is to aquire more MU so that floor goes up

There are three important mechanism to understand first one is

1. Backing by MU stock
There goal is to acquire and hold more MU stock so that backing for SEMI goes up floor goes up

2. Staking $Semi
Stake SEMI get new SEMI but this is not deflationary you send it or only release when the value of $SEMI goes up ( new watermark is achieved)

For example if previous value of Semi was like $1 and it increases to 1.1$ ( new watermark ), in that case new tokens are minted and distributed to stakers. If price falls and no new watermark is achieved, there will be no minting.

3. BONDING
It also offers bonding. You give MU to protocol and it give you Semi at a discount. But it has a vesting period of 24 h

4. Fees
The fees from protocol goes to backing of Semi (Buying and holding MU stock) which further strengthens the floor.