@QredoNetwork's Tokenomics is going to be highly deflationary.
To truly appreciate this, one needs to view it through the $QRDO 'ecosystem' lens, when the network is operational at scale.
Here are 8 highly probable (& some speculative) deflationary catalysts we can expect 🧵👇🏽
To truly appreciate this, one needs to view it through the $QRDO 'ecosystem' lens, when the network is operational at scale.
Here are 8 highly probable (& some speculative) deflationary catalysts we can expect 🧵👇🏽
1. The ultimate metrics: AUM & MAU (monthly active users)
Qredo's entire ecosystem is built on the foundation of groundbreaking dMPC technology.
This is what enables the custodial infrastructure, attracts billions of dollars & will make Tokenomics highly deflationary.
Qredo's entire ecosystem is built on the foundation of groundbreaking dMPC technology.
This is what enables the custodial infrastructure, attracts billions of dollars & will make Tokenomics highly deflationary.
With a low to moderate amount of AUM and network activity, Tokenomics may seem inflationary.
With a moderate to high amount of AUM, Tokenomics will take on an exponentially growing deflationary character.
Why?
Because of simple math & the design of the ecosystem.
With a moderate to high amount of AUM, Tokenomics will take on an exponentially growing deflationary character.
Why?
Because of simple math & the design of the ecosystem.
2. Market Makers (MMs)
The first big piece of the puzzle is the MMs.
They need to stake an amount of $QRDO alongside other digital assets.
For perspective on the value they could potentially stake, @wintermute_t, a MM, trades around ~6b daily.
The first big piece of the puzzle is the MMs.
They need to stake an amount of $QRDO alongside other digital assets.
For perspective on the value they could potentially stake, @wintermute_t, a MM, trades around ~6b daily.
Qredo currently has ~8b AUM and 46k MAU:
That would mean that MMs will need to stake enough tokens to handle billions in transactions on @QredoNetwork.
https://twitter.com/qrdonews/status/1484266062514470912?s=20
That would mean that MMs will need to stake enough tokens to handle billions in transactions on @QredoNetwork.
As $QRDO attracts more assets onto the network, the staked amounts from MMs (unknown) will need to increase significantly in proportion to the economic activity.
I wouldn't be surprised if the staked value is in the 8-10 figures or more (a portion of which will be in $QRDO).
I wouldn't be surprised if the staked value is in the 8-10 figures or more (a portion of which will be in $QRDO).
With staked value in that range, MMs would eat away at the circulating supply fairly easily.
Additionally, there's the incentive for MMs to hold Qredo, as some like Wintermute are also strategic investors.
But that's just one of the big pieces.
Additionally, there's the incentive for MMs to hold Qredo, as some like Wintermute are also strategic investors.
https://twitter.com/sharavana_rao/status/1482895259449577473?s=20
But that's just one of the big pieces.
3. Validators
Similar to MMs, validators are a big part of the network & need to stake a growing amount of $QRDO proportionate to the AUM.
With around 21 validators in 2022, imagine having to stake just ~$1m Qredo each (arbitrary illustrative number).
Similar to MMs, validators are a big part of the network & need to stake a growing amount of $QRDO proportionate to the AUM.
With around 21 validators in 2022, imagine having to stake just ~$1m Qredo each (arbitrary illustrative number).
https://twitter.com/qrdonews/status/1484266364298739712?s=20
That's ~$21m removing ~10m tokens (at $2) from circulation, which is ~25% of the current circulating supply - causing immense buying pressure.
Note also that assets can flow into the network suddenly through adoption but circulating supply will only progressively grow.
Note also that assets can flow into the network suddenly through adoption but circulating supply will only progressively grow.
There's also an upcoming buyback program, which could be a portion of validator rewards flowing into buying back $QRDO tokens.
Plus, $QRDO holders can also add to validator pools in the future to share in the high validator reward model: qredo.com/qredo-white-pa…
Plus, $QRDO holders can also add to validator pools in the future to share in the high validator reward model: qredo.com/qredo-white-pa…
4. Borrowers
Borrowers have to stake to borrow on the network. The borrowed amount can be re-staked too, as mentioned in their white paper, increasing yield for borrowers.
The QRDO tokens still earn yield, making it the most secure way to custody, borrow, & earn double yields.
Borrowers have to stake to borrow on the network. The borrowed amount can be re-staked too, as mentioned in their white paper, increasing yield for borrowers.
The QRDO tokens still earn yield, making it the most secure way to custody, borrow, & earn double yields.
5. Liquidity providers (LPs)
Somewhat connected to MMs, LPs have to stake a large value of assets, a portion of which will also be $QRDO.
With the upcoming liquidity hub and OTC dark pools in the roadmap, the amount of LPs' staked amounts will need to significantly increase.
Somewhat connected to MMs, LPs have to stake a large value of assets, a portion of which will also be $QRDO.
With the upcoming liquidity hub and OTC dark pools in the roadmap, the amount of LPs' staked amounts will need to significantly increase.
For perspective, OTC trading volume is 2-3 times the size of the volume in exchanges: atlantis-press.com/proceedings/ic…
Yes, almost 300% of the value that passes through exchanges will most likely move through @QredoNetwork in the future.
Yes, almost 300% of the value that passes through exchanges will most likely move through @QredoNetwork in the future.
5. Ecosystem fund (EF)
The EF has tokens that never enter the circulating supply: qredo.com/blog/coinmetro…
Instead, developments from the ecosystem partners will lead to more influx of capital, leading to higher AUM and MAUs, catalysing network effect.
The EF has tokens that never enter the circulating supply: qredo.com/blog/coinmetro…
Instead, developments from the ecosystem partners will lead to more influx of capital, leading to higher AUM and MAUs, catalysing network effect.
6. Treasury buyback
A speculative one could also be buybacks from Qredo's treasury to support validator pools in the event of an unpredictably large influx of assets and transactions.
Buybacks could potentially apply to allocations for future projects in the DAO too.
A speculative one could also be buybacks from Qredo's treasury to support validator pools in the event of an unpredictably large influx of assets and transactions.
Buybacks could potentially apply to allocations for future projects in the DAO too.
7. Burning & vaulting
Token burn or vaulting mechanisms could also be put in place to deflate the supply, though this is also speculation.
Considering the novel L2 middleware token architecture, I'm not particularly certain about the technological impact of such mechanisms.
Token burn or vaulting mechanisms could also be put in place to deflate the supply, though this is also speculation.
Considering the novel L2 middleware token architecture, I'm not particularly certain about the technological impact of such mechanisms.
8. Partnerships/integration
Lastly, with ecosystems like $LUNA, $SOL etc. integrating & onboarding institutions, alongside exchanges adopting Qredo's custody wallets, we can expect a massive influx of funds onto the network.
As a result, network effect will kick into high gear.
Lastly, with ecosystems like $LUNA, $SOL etc. integrating & onboarding institutions, alongside exchanges adopting Qredo's custody wallets, we can expect a massive influx of funds onto the network.
As a result, network effect will kick into high gear.
Overall, @QredoNetwork seems to be building an ecosystem to attain a point of immense network effect through the various elements mentioned above.
It's also evidenced by their steadily increasing no. of wallets even during a big dip in the market:
It's also evidenced by their steadily increasing no. of wallets even during a big dip in the market:
https://twitter.com/JoshGoodbody/status/1485144706296254468?s=20
To summarise, the following elements in the ecosystem (which incl. some speculation) could create a large deflationary effect on the circulating supply:
1. AUM & MAUs
2. MMs
3. Validators
4. Borrowers
5. Ecosystem fund
6. Treasury buyback
7. Burning & vaulting
8. Partnerships
1. AUM & MAUs
2. MMs
3. Validators
4. Borrowers
5. Ecosystem fund
6. Treasury buyback
7. Burning & vaulting
8. Partnerships
All the points above are designed to work symbiotically with each other.
So much so, that with their significantly higher future AUM, the token price has to increase exponentially to handle the network activity and the demand for $QRDO tokens by the ecosystem.
So much so, that with their significantly higher future AUM, the token price has to increase exponentially to handle the network activity and the demand for $QRDO tokens by the ecosystem.
With the points above, along with the other key points I highlighted in the thread below, I wouldn't be worried about the progressive increase in the circulating supply of $QRDO tokens.
https://twitter.com/sharavana_rao/status/1483445164614238210?s=20,
Finally, as I'm not an insider or a paid influencer, all of these are my personal opinions based on research.
Always do your own research as this is not financial advice.
Always do your own research as this is not financial advice.
To help others understand the $QRDO ecosystem better:
1. Retweet the first tweet below.
2. Like and share your thoughts!
#QredoArmy
1. Retweet the first tweet below.
2. Like and share your thoughts!
https://twitter.com/sharavana_rao/status/1485610557197918209?s=20
#QredoArmy
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