What happen if company allocate 90% token for stake reward

[smax00580]

Helo crypto mates. My question is simple but is like know the end of arcade game. What will happen if a project has total supply of 100Million token and  put it's 90% token as staking reward. Also token has a utility too to buy it. And every one just keep earn those token by staking . And higher chances 90% token will go to  public hand sooner or later When reward pool is end. Will it not cause negative effect in token price and everyone just keep dump their staking reward tokens and keep dumping token price.
Now question is that how can balance the equations token price not dump but gradually keep increase time to time. Should buying demand of token rate more than staking reward earned by users?
Basically want to know how a proof of stake reward feature token can survive and keep increase it's price.

[1714605905]

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[1714605905]

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[Koutami]

Helo crypto mates. My question is simple but is like know the end of arcade game. What will happen if a project has total supply of 100Million token and  put it's 90% token as staking reward. Also token has a utility too to buy it. And every one just keep earn those token by staking . And higher chances 90% token will go to  public hand sooner or later When reward pool is end. Will it not cause negative effect in token price and everyone just keep dump their staking reward tokens and keep dumping token price.
Now question is that how can balance the equations token price not dump but gradually keep increase time to time. Should buying demand of token rate more than staking reward earned by users?
Basically want to know how a proof of stake reward feature token can survive and keep increase it's price.

Whats the purpose of staking the token? If locking the token only to decrease the supply on the market, then no value added to the reward of it.
Absolutely the price of the token will be decreased overtime, moreover if the project have no future plan about the monetary policy and the future development.

[NewRanger]

locking token for staking reward need special calculation about its effect to market. we will see is it give negative or positive impact due this high percentages. staking reward have goals to lock investor's token and decrease supply in market, but is it will be effective when holders will lock their token for some periode. dev team  calculated yet about the risk if investors unlock and they will sell staking reward ? APY and another factor must calculated well with this tokenomics.

[Teraboy]

This coin may still alive but the price will be going down so hard. The fact that if the staking reward is just a way for the developers to attract the buyers of the token. More buyers wanna try to stake and get the reward and they must have bought the tokens as much as they can to earn big ratio of reward from the staking pool.
The best scenario if more tokens interesting in the utility of this token and they will be earning more and more and keep this token for the long term.

[viananda2525]

This coin may still alive but the price will be going down so hard. The fact that if the staking reward is just a way for the developers to attract the buyers of the token. More buyers wanna try to stake and get the reward and they must have bought the tokens as much as they can to earn big ratio of reward from the staking pool.
The best scenario if more tokens interesting in the utility of this token and they will be earning more and more and keep this token for the long term.

staking is not the only way to attract demand and buyer in market, with special APY traders already calculate the risk if stake their token meanwhile market very volatile. the first thing dev team must developt was token utility in their platform ecosystem. if ecosystem builded well and demand could created due token utility it could drive market demand and price. and staking be second strategy for project to offer investors locking their token with some yearly return and investors got double advantages, first from price maintainance and staking reward.

[Psynthax]

in my opinion staking is just a way for dev to keep people dumping only temporarily, if you give 90% for staking then at the early time it's maybe gonna increase the demand but that's only temporarily until the coins that are staked unlocked then the market could possibly being dumped but you can also prolong the staking period for that, however if the token has no promising future whatsoever doesn't matter even if total alloc for staking reward increased to 95% no one gonna buy it because staking also means we should see how the project will grow in the future.

[yhiaali3]

Stacking leads to a decrease in the supply in the market and this leads to an increase in the price of the token, but with the distribution of more rewards there will be an increase in the supply constantly and this will lead to a significant increase in the quantity in the market over time which leads to a decrease in the price of the token, there must be a type From the balance between the locked quantity and the quantity that is put on the market, I mean there must be real uses of the token that lead to an increase in demand for it and withdraw it from the market so that the market is not flooded and the price of the token collapse.

[YOSHIE]

Of the total tokens: 100Million, 90% is allocated to the Bounty which means it is distributed to the Bounty participants, another 10% is lost / burned, a rough calculation of the possibility that the token has no value on the marke, investors are not familiar with these tokens, and one more thing that can happen, they will buy tokens from Bounty participants at the lowest price, next they will develop those tokens in the market, It's like a game, they play the price and they also play the market, after the token is successfully purchased 70% of the bounty participants.

[Tytanowy Janusz]

proof of stake reward feature token can survive and keep increase it's price.

Proof of stake .... TOKEN. If you are just a token you dont need proof of stake. You are just a token on a chain that use proof of stake or proof of work mechanism. You dont need to aply them too.

I hate tokens (will never invest in such token) that has build in mechanism that use high inflation to build false value. There is no value for investors in inflating whole circulating supply by 10x... This does not build value. this build false value for not so bright investors.

If your project has use case - use it to generate profit - share it with token hodlers. Simple as that. Like BNB is doing it. Binance generates profits and use it for buybacks.

[Sterbens]

Now question is that how can balance the equations token price not dump but gradually keep increase time to time. Should buying demand of token rate more than staking reward earned by users?
Basically want to know how a proof of stake reward feature token can survive and keep increase it's price.

ridiculous, if 90% is allocated for betting then why is the 10% allocated for trading? will it keep the trading volume stable?
if they want to stake the Token, then it's better not to have any left, it's better to just leave it all. because we will not be interested in investing which can only be owned by 10%. it is useless, it will only result in the pump being easy to control and draining easily.

[(o)(o)ilikeboobs(o)(o)]

90% of the amount is the staking bonus which will be mined by the remaining 10%. So those who add initial liquidity and reinvest regularly will get the most tokens. While it looks tempting, this may not be sustainable as dumping will occur once the original bet has been withdrawn.

[tbct_mt2]

And every one just keep earn those token by staking . And higher chances 90% token will go to  public hand sooner or later When reward pool is end. Will it not cause negative effect in token price and everyone just keep dump their staking reward tokens and keep dumping token price.

Staking will be like this.

- The earlier you join the party, the more reward you will receive from staking.
- The early price can be high or expensive but it will be dumped soon because of reason 1.
- If you join and stake in early days, sell them all when you double your coins and can sell it to get your capital back.
- The rest coins you have, after the sell, you can use them to keep staking.
If you get luck, price does not dump too much, you will get good profit.

This staking strategy help you to protect your capital, and gamble with the rest coins for profit.

90% go to public hands, it does not matter. The matter is premined coins, preminted tokens. You must check those info.

[samcrypto]

It's just like a supply and demand, if there's a supply and no demand you can expect the price to go down and it'll go on the other side if there's a demand and have a limited supply. So the project must attract more investors either it's staking of any kind of passive income they have to do the work, this is crypto market after all there's no guaranteed profit and the price is very volatile so expect the worse every time you invest.

[tbct_mt2]

It's just like a supply and demand, if there's a supply and no demand you can expect the price to go down and it'll go on the other side if there's a demand and have a limited supply. So the project must attract more investors either it's staking of any kind of passive income they have to do the work, this is crypto market after all there's no guaranteed profit and the price is very volatile so expect the worse every time you invest.

It is about supply and demand. More supply will be given after early days of staking and demand can be the same or not increase at the same rate of new supply from staking rewards. This unbalance between supply and demand causes price dump for staking coins. Apply it to yield and farm tokens too.

Another risk is from the massacre on the market, if it appears it will cause double effects and dump the price more.

[elda34b]

Obviously allocating a huge percentage of the supply to rewards would be disastrous if there's no demand at the token is just created for the sake of "staking". The alternative is quite simple though, the team must design the token as an essential part of their ecosystem. If they can't even do that, what's the point of launching a token in the first place.

[btcltcdigger]

Helo crypto mates. My question is simple but is like know the end of arcade game. What will happen if a project has total supply of 100Million token and  put it's 90% token as staking reward. Also token has a utility too to buy it. And every one just keep earn those token by staking . And higher chances 90% token will go to  public hand sooner or later When reward pool is end. Will it not cause negative effect in token price and everyone just keep dump their staking reward tokens and keep dumping token price.
Now question is that how can balance the equations token price not dump but gradually keep increase time to time. Should buying demand of token rate more than staking reward earned by users?
Basically want to know how a proof of stake reward feature token can survive and keep increase it's price.

Basically you plummet the price to 0. Because people will get that coin as a reward, and sell it, de-facto decrasing the price each time.
So imo, it's doomed to fail longterm

[smax00580]

wow i really learned alot from your reply. Thanks to all who helped me understand . Even we put 90% token reserve for staking their must be some demand and buying force. If that is more than spending project can survive.

[H1N1]

Helo crypto mates. My question is simple but is like know the end of arcade game. What will happen if a project has total supply of 100Million token and  put it's 90% token as staking reward. Also token has a utility too to buy it. And every one just keep earn those token by staking . And higher chances 90% token will go to  public hand sooner or later When reward pool is end. Will it not cause negative effect in token price and everyone just keep dump their staking reward tokens and keep dumping token price.
Now question is that how can balance the equations token price not dump but gradually keep increase time to time. Should buying demand of token rate more than staking reward earned by users?
Basically want to know how a proof of stake reward feature token can survive and keep increase it's price.

If 90% of the token is staking reward, then only 10% of the token will going into the circulation.
This 10% of the token will be staked and the reward will goes to the circulation slowly from the allocated 90%.
There are few ways to prevent dump of the price, burn, buyback, etc.

[sikke]

No.

The tokens themselves are not sufficient in order to make the PoS reward worthwhile. Allocating 90% to PoS rewards also has no value if the token itself has no value.

People think that they're getting free money, but at the end of the day they're also devaluing the existing supply of coins through emission of new ones via the PoS protocol. There is always a trade off and no free lunch.

[Brus123]

Actually there are a lot of coins that work on proof-of-stake and they are very successful. You just deposit your assets on a special platform and then you get a reward. Usually, one good way to maintain the price is to burn some coins regularly. This way BNB works for example. You shouldn’t be scared that devs allocate 90% of tokens for staking. It is better than if they just sell everything on presale.