juniperion (OP)
Jr. Member
Offline
Activity: 86
Merit: 8
Crypto investor, photographer, enthusiast of tech.
|
|
December 01, 2022, 07:06:34 PM |
|
The most of staking platforms offer you unlimited tokens or reserved tokens for reward. You believe that these tokens will be valued in the future. This is a promise, wish. It may not happen too. These tokens are at out of circulation. So, they haven't been valued yet. They also expand circulation. Inflation occurs. Next step is consistant sell pressure.
Bext token has about 312 million fixed supply. Except reserved tokens, all Bext tokens in circulation were sold during ICO. These are paid tokens. They have real value. People paid real money for them. Unsold tokens were burnt.
Byte Exchange buys Bext tokens from market, from people who have already paid money before. Staking rewards are Bext tokens which purchased with profit (real money) of Byte Exchange. So, rewards have real value.
Byte Exchange is regular buyer of Bext tokens. It pulls out Bext token from circulation and distributes to people who staked Bext. People have to buy Bext tokens and lock on staking platform. All of these create shortage of Bext in the market.
The staking algorithm of Byte Exchange is mechanism of distribution of realized profit of Byte Exchange. This is super deflationary price mechanism for Bext tokens.
|