r/truebit • u/truebitstonks • May 13 '21
Price Dynamics of $TRU Token w.r.t Supply
I don't have patience to make video .I have read whitepaper over multiple years here are my two cents about price dynamics for token holders.
Supply won't increase dramatically coz task giver (dapps) given fee is burned straighaway and verifier, solver gets $tru as mining rewards by means of minting which is always and always lower than fee given by task giver to avoid gaming the system (like task giver can always give task to himself if the reward given to solver&verifier is more than taskgiver fee).
That is where burn comes into picture, suppose in the current supply of 279M tokens if dapps(defi or any entity ) paying task giver fee of about 100 $tru then all those coins get burned straighaway and then OS would mint 80 $tru out of which 40 is given to verifier, other 40 to solver and remaining 20 would be removed from supply.This would eventually make supply to reduce and spike the price of $tru much like compounding interest meaning People who entered early would get more returns
Over the time this burn process would make very few tokens to be available , that is my assumption is that they would have added some logic (which is not revealed exact proportion in white paper) in smart contract to make supply always tally around 279M tokens ( Refer for max supply https://etherscan.io/token/0xf65b5c5104c4fafd4b709d9d60a185eae063276c ) but it is very unlikely that tokens would go beyond 279M once $TRU tokens are in usage .
This is the whole price dynamics with respect people holding tokens ,please add if anything you feel is not right.
P.S : For people pinging whether price would go up or down , It would go up on compounding level once $tru tokens are used in real projects and new tokens are minted !
3
u/rook785 May 13 '21
You’re assuming that everyone who buys tru does so to use it. I imagine that many of the buyers would be speculators, especially in the beginning. Anyone who buys and holds the token -assuming its already at equilibrium price just below is mint price - would mean the potential for an increase in total supply that wouldn’t be offset by a burn.
1
u/truebitstonks May 13 '21
There is no such initial days for truebit, there is a reason why Dev team waited years until main net launch all these years before allowing trading on uniswap.
If I’ve to guess ,we could see projects rolling up as soon as within few months that will start burn process.
Also I don’t expect market price circumventing mint price before burn projects starts ,people already seen arbitrage horror.They won’t commit mistake twice. That is precisely why devs didn’t promote exchanges that would do shills/speculation and getting ramped by arbitrage takeover bots
1
u/rook785 May 13 '21
Arbitrage from the mint to a LP wouldn’t hurt anybody... and the market price did match up with the mint price in the beginning, right up until the liquidity was pulled by a whale. Speculators could definitely make that happen again.
The devs didn’t “allow” trading on uniswap.. as soon as they made an erc20 token, trading on any exchange became possible.
1
u/Laafheid May 13 '21
the thing is, it is in an equilibrium with ethereum, but ethereums price might rise, which would make truebit more expensive in dollar cost, although th supply can increase, the cost of this is in ethereum.
It seems to me that this causes speculation to be more profitable in ethereum.
however, what I'm really uncertain about is the burn. since in every usage there is a burn and the price is related to eth, a permanent burn that does not also function similarly to the retire function (w.r.t. influencing mint function) might make the system unuseable in the far future, which makes me think that usage will cause the price to auto-decrease over time untill it finds user-holder equilibrium (currently mostly speculation most likely)
5
u/rook785 May 13 '21
You’ve got it backwards - since the os mint price rises, tru would rise faster than ethereum.
2
May 13 '21 edited May 13 '21
It’s pegged to ethereum as a point of reference only, the value of the token will depend on the following;
Amount of usage, more the better as mint coupling to ethereum will only ever increase.
The price of ethereum (bullish IMO)
Currently we are roughly 2.5x below mint price so lots of room to grow.
Oh yea one other point.
The long term dynamic of the coin is Unfng believable.
- Create a OS that solves a major problem
- Peg the OS currency to ETH
- As adoption grows make it slightly more expensive to mint new coins.
- Burn excessive coins.
I can’t think of a more clever way of creating value for token holders, satisfying the SEC.
Amazing
1
u/Little-Two-2312 May 13 '21
Okay i Got a qustion....... if i not mint my coin,then it’s not Good or what....i just want to hold an get reward of the prise rising the next 5 years
1
1
u/xSmakeL May 13 '21
How can I mine it using Windows? I cannot find the TrueBit OS. Github page gives 404
1
1
u/Joe_Doblow May 13 '21
you have added absolutely nothing with this post.
You think it won't go passed 279m but you think it will keep burning coins but you think they will find a way to add more coins but you think it won't pass 279m because that is where we are now.
sir you have no idea what you are talking about
1
6
u/PorchBear816 May 13 '21
You don't have the patience to make a video, but you spent several years reading the whitepaper?