If those tokens are to be throttled, then again, how would the token gain value with so many in circulation? Is this a case where the main investors would be users of the platform?
Value of token and Price of token is different.
Value of token is not dependant on the number of tokens in supply, but the market cap of the company or business.
Lets take an example of existing two coins.
Edgeless and Santiment.
Both has a market cap of 111Million
But the coin price is different. EDG = 84 cents and SAN = 1.33 Cents.
This is because the number of coins in circulation is more for EDG.
But if an investor hold 1000 USD worth of coins, he get the same value for both EDG as SAN.
But he will hold more tokens for EDG less token for SAN.
Basically the number of tokens in the circulation ONLY alter the price of one token NOT THE VALUE OF THE TOKEN.
Value of the coin is not dependent on the number of token in the supply, but how much market cap we are trying to raise.
We are raising only 20 million for the token sale.
We will be raising the same amount in token sale if the number of tokens in circulation is 500 million or 100 million.
If the total number of tokens is 100 million, the cost of one token is 20 cents
If the total number of tokens is 500 million, the cost of one token is 4 cents.
But in both cases the value of token remains same.
If the number of tokens is 500 million, entrepreneur will have to pay 2500 boon coins for a $100.00 project.
If the number of tokens is 100 million, entrepreneur will have to pay 500 boon coins for a $100.00 project.
But the value of Boon coin remains the same even though the cost is different.
