The daily cap is not affected.

What is being withdrawn is the paper Travelcard, most often issued by train companies outside London, because TfL thinks it does not receive a fair share of the revenue from those tickets. When you're using contactless on buses or the underground, all the revenue goes to TfL.

This will cost me about £4 every time I go to London, as the add-on for a Travelcard is only £3.70 whereas the daily cap for Zones 1-2 is £8.10. But on top of a £150 train fare that is insignificant.