One of the major goals of Polycub was to designed a DeFi platform that was sustainable. The team seems convinced the happened upon the solution. Others, meanwhile, are not so sure.
The basis of this sustainability is the fact that the token itself is deflation at an advanced rate. This is something that we have to keep emphasizing.
Notice the rate of deflation that we have taking place.
Week 1 5 POLYCUB per block
Week 2 4 POLYCUB per block (20% reduction)
Week 3 3 POLYCUB per block (25% reduction)
Week 4 2 POLYCUB per block (33% reduction)
Week 5 1 POLYCUB per block (50% reduction)
After that, we see a 50% reduction each month.
What is key to focus upon is the past over the 28 day period. It accelerates to the point where the emission is a fraction of what it was.
The price of POLYCUB in USD started out strong but them entered freefall. This was discouraging to many who feel that it is a sign of things to come. Perhaps it is although the methodology might tell a different story.
For now, we can take some solace in the fact that the price, in USD, settled down. After bottoming out in roughly the 60 cent range, it is now back near a dollar.
Is this an indication of anything.
At this point, we cannot say for certain. What we do know is there is a certain adjustment in viewpoint from the latest reduction in POLYCUB. It seems like people are aware of what is happening as the slowdown occurred.
Earlier I did a video detailing how an important milestone was reached for Polycub. The PC to xPC ratio crossed 10. This is just one barrier that it will hit. We are now on our way to 20 PC per xPC. It might take a fair portion of this month, but we will get there.
The point is we are seeing a locking up on POLYCUB.
Here is the latest snapsot of the POLYCUB locked.
As we can see, more than 1.25 million POLYCUB is staked. This is how it compared to the whole.
We can also see that just under half the existing POLYCUB is now in the contract, forming the xPOLYCUB.
This is obviously going to have an impact at some point. We know that the total emissions is roughly 7.2 million before it slows ways down to an insignificant rate. Hence we are more than 1/3 there, only 9 days into the project.
The holy grail is going to be the fees that are generated. We can see how the amount of POLYCUB available is just going to keep decline, on a percentage basis. If the fees generate enough USD, that will keep pumping more into the xPOLYCUB contract. Here again, the design is for the larger percentage to head there.
It will take another week to reveal is we are at the sustainability level. The recent move up could simply be to a few large buyers entering the market. Things are so thin right now it doesn't take much to move it.
We might have another move down in USD terms. There is no way to guarantee sustainability hit this quick. It would be great if that were the case but highly unlikely. That said, if enough interest is being generated, perhaps people are piling in.
Whatever the time frame, the next week or two should be interesting. We have roughly 5 days more of 4 POLYCUB per block before a 25% reduction. Each new level causes the situation to get even tighter. By the time of the next reduction, we could have a ratio near 14. At that time, we could see 1.6M or 1.7M POLYCUB locked up.
Over time, it will just keep growing. This is part of the design. Which brings us back to the USD being generated from the fees. That is going to be the difference maker.
We should know how things are shaping up over the next few weeks.
It is worth keeping an eye on.
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