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What you mean might be circulant matrix instead of toeplitz matrix. See section 3.4.4 in https://web.stanford.edu/~dntse/Chapters_PDF/Fundamentals_Wireless_Communication_chapter3.pdf about how the circular convolution in OFDM is represented by matrix operations (eq 3.130 onwards). First, in almost all standard OFDM systems, you can assume $D \le L$. The ...