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Cryptocurrency News Articles

Usual Token: 3 Clarifications to Fight Misinformation

Jan 01, 2025 at 08:06 am

Before the year ends, I would like to make 3 clarifications about #UsualToken, where I have noticed greater misinformation and malicious posts that harm

Usual Token: 3 Clarifications to Fight Misinformation

*I hope you help me share this, friends*

Before the year ends, I would like to make 3 clarifications about #UsualToken, where I have noticed greater misinformation and malicious posts that harm not only the development of the token but also the behavior of people who are just trying to enter the crypto world, and out of fear, they have sold at a loss 😞

Let's go step by step:

1️⃣ Where on earth did they get that the "circulating supply" will stop around 494 million?

From the attached formula (which we found in the Minting chapter 5.1 of the official whitepaper on the website)

For those who are interested:

d= 0.25, which is the global distribution rate of the protocol

Mt= It is the minting rate which is DYNAMIC

Supply++t= The tokens locked in the protocol

Pt= Price in the market of USD0

🙇🏼‍♂️ Among other things, what this formula ensures is that the daily issuance of tokens decreases over time, to adjust according to the growth of the protocol. Although the TOTAL supply is 4 billion, the CIRCULATING supply has a controlled limit (approximately 12.3% of the total, in this case, about 494M).

👏🏼 This limit aims to make a scaled release of tokens and not saturate the market, as the price would fall apart. Once we reach 494M in circulation, they would be put back into circulation starting from March/April 2025.

2️⃣ HOW can this limit of 494M affect the price? (according to many, the circulating supply does not influence the price 😅)

When we reach 494M in circulation (it may be a little more or a little less, be tolerant), there are two important points by which the price may be positively affected:

- The offer will be limited (the tokens) and the demand will increase (because there is A LOT of people interested in USUAL). Example:

⚽ Imagine a friendly soccer match of little importance (this would be any memecoin without structure or value) between Australia and Canada. There are 10,000 interested spectators and 100,000 tickets. The prices of those tickets will be low, on offer. Now let's do the opposite, imagine a match of importance, a world final between Argentina and Brazil (Usual, because it has a lot of project structure and backing). In this case, there are 100,000 interested spectators, but only 20,000 tickets (limited supply). Not everyone will be able to enter, and those who do will have to pay more. The same will happen here.

- Another key factor is the reward of USUAL for participation: As we already know, everyone who uses USUAL tokens or locks their assets will receive rewards. And what happens with this??

🔐 Easy. This promotes token retention and further decreases the supply. For example, if many users lock tokens in staking, those tokens are taken out of "circulation," increasing the price of the remaining circulating tokens.

3️⃣ For me, one of the most relevant points when investing: Why is $USUAL a truly serious project?

- For Governance and its rewards: USUAL holders can participate in decisions about the protocol through the DAO and receive economic compensation for that.

- For being financially innovative: What USUAL does is combine REAL ASSETS with decentralized products. In this way, it ends up providing access to safe investments, such as treasury bonds.

- For sustainable growth (and some buy today and want to sell shortly after for profit 🤡): Because of everything discussed earlier and its transparent and DEFLATIONARY process, the protocol aims to protect the value of the token in the long term, to benefit everyone who trusts it.

🚀🚀 CONCLUSION 🚀🚀

We need to invest with information, not with fear.

The circulating supply is not a problem, but a strength. As I said before, it is a model designed to incentivize participation, protect the value of the token, and ensure the sustainability of the project in the long term.

The latest posts on Binance's Square only generated unnecessary panic. Being well-informed is KEY before investing.

News source:www.binance.com

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

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