Thread by @theXfrontier

$CSPR Thread 🧵

1) My thoughts🧠on the tokenomics

One of the biggest critiques I see surrounding $CSPR is the 8% YOY inflation. This means the total supply increases by 8% each year. I will explain why I am able to sleep just fine while holding #Casper.

Lets begin.

2) $CSPR is Proof of stake protocol & has no MAX supply meaning the supply will continue to increase by 8% each year.

This is the part where most people get off and stop paying attention.

I will explain my thoughts on this a bit further on.

3) All #Casper private and public sale tokens have been unlocked.

5) 4) At Genesis the initial total supply was 10bn tokens.

According to @MessariCrypto, almost all of the original 10Bn tokens are unlocked and liquid, and around 8% of are yet to be unlocked.

5) Long-term health chain stats(at time of writing)
✅93.20% of total supply in circulation
✅75.34% of total supply staked

The higher the total supply in circulation/liquid the more likely CEX listings.
The higher the total supply staked the more secure the network becomes.

6) @Casper_Network has the second highest staking ratio behind Binance's BNB, according to Staking Rewards.

Aside from securing the network, the higher stake ratio indicates the long term success of the network by all stakeholders. Win, win.
yahoo.com/now/casper-csp…

7) So now the math behind the inflation and take a look at how many years it would take the $CSPR token to double. I'll let professor @Kevin_Cage_ take this one.

8)The 8% inflation is there to incentivize validators and stakeholders to secure the network. The community can propose to reduce or change the inflation reward mechanism and must be approved by 2/3 validators to pass.

This is where I explain my opinion on No Max supply:

9) Is that reducing the 8% inflation reward mechanism or voting for a burn of the supply will be detrimental to the network for 2 reasons:
1) Less supply, means less supply staked, less secure the network.
2) $CSPR token will be needed for the mass level of volume that will

flow through the public chain when it is at full capacity. Listen to CEO and Co-founder of @Casper_Labs Mrinal Manohar on full adoption of the protocol.

10)Mrinal stated something very key🔑.
They will not place "unnecessary" transactions on the chain. He even explains that they will have to use Hybrid deploys as a form of sharding in order to alleviate the volume of "REAL" transactions on the chain.

11) Here is a snippet from Joe Sacher, lead Principal engineer at @Casper_Labs on the "transaction per second race(TPS)" and junk transactions.

12) I am not a price prediction guy. NO HYPE here. But with a little logic and a bit of healthy speculation based on all the evidence and building behind the @Casper_Network one can extrapolate a healthy long-term outlook.

13) Go back to @Kevin_Cage_ video right above. At the 8 year mark the $CSPR total supply would be at about 20.8Bn tokens.
THAT is in 8years from today. I know not all tokenomics are the same but here are a few total supplies of some other top Layer-1's.
Just stay with me.

14) People are turned off with the 8% yearly inflation while not focusing on the the infrastructure building the @Casper_Network is doing, AND while not realizing that some other top layer-1's circulating supply already exceed what $CSPR total supply will be in 8 years.

15) If Shiba Inu and Doge hit a $44bn & $75bn MC respectively. It is not a far fetch idea that $CSPR with all the use cases being developed, integrations and infrastructure being deployed across all markets, can potentially exceed a $100Bn+ Market cap in the years to come.

16) Keeping the 8 year mark in mind would place the $CSPR token somewhere aroud $4-5 to break the $100bn MC.
Im of the opinon that $CSPR will easily break the $100Bn MC and more in the years to come and potentially be a top 10 coin.

17) Making money in this market is a calculated risk, NOT a gamble.
The risk reward ratio for $CSPR is obvious if you pay attention.
‼️Always do your own research.🔍‼️
Know your risk tolerance, have a plan. NFA
Like and RT if you enjoyed. Love to hear your thoughts.