Posts

Will CUB become deflationary?

avatar of @myfreebtc
25
MyFreeBTC
@myfreebtc
·
·
0 views
·
2 min read

The @leofinance team just announced that the IDO system will have a major update! The main change is that the upcoming IDO's will use 100% CUB instead of the previous CUB-BUSD LP V2 tokens.

This is great news for all CUB token holders since the first "experimental" IDO caused a dip in CUB prices due to the users exchanging CUB to BUSD in order to participate. There are some crucial advantages to this new method.

  1. It will be way easier to participate in the IDO since now you don't have to exchange cub to BUSD and pair it with your remaining CUB with your recently purchased BUSD on pancake swap V2. All you have to do now is unstake your CUB from Kingdoms or buy CUB in order to participate.
  2. It will create buying pressure on CUB and push the price up. Very few people will be willing to sell CUB during the IDO's since they are using most of it to participate and many users will be buying more CUB in order to increase their participation on the IDO.
  3. Easier to calculate how many CUBS will be burned on each IDO.

Will CUB become deflationary?

Total CUB Supply increases by around 28,400 every day. It is hard to determine the exact numbers since the daily blocks on the Binance Smart Chain fluctuates a lot. I took into account the fact that the team burns a little bit of CUB every day.

Let's take a look at the example presented by @khaleelkazi on Leo's latest post:

Let's do the math: If IDO #2 burns 500K Cub then it would take 500K / 28400 = 17.60 days for inflation to print an equal amount to the CUB tokens that were burned.

To answer the big question, it is definitely possible for CUB to become Deflationary if the team keeps securing these BIG IDO's and launching them every other week.

I'm being conservative with the numbers since for each successful IDO the amount of daily CUB burned will keep increasing. Especially with the incentive for people to stake their LPs received from participating on each IDO.

CUB Price

I'm very confident that CUB has a bright future ahead and I trust the team but it all depends on the success of the IDO's.
Leofinance has proven time and time again that they are committed to creating long-term value for the investors. Cub finance is only 6 months old and we've already seen the implementation of Kingdoms and now the IDO launchpad and I'm sure they will keep improving and creating new products/utilities for the platform.

I keep buying CUB and snowballing my bags in the kingdoms. As I said before, CUB will be paying my monthly rent in 2022 using only the rewards from staking.

Posted Using LeoFinance Beta