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A SHORT THREAD
The tokenomic model for $LINK promotes exponential growth that begins with staking.
The parabolic chart is ingrained in the tokens fundamentals. Everything before staking is a result of speculation thus short term price movements are fun to watch and profit off
The tokenomic model for $LINK promotes exponential growth that begins with staking.
The parabolic chart is ingrained in the tokens fundamentals. Everything before staking is a result of speculation thus short term price movements are fun to watch and profit off
but, are fairly insignificant to the project.
The moment staking starts, the price will begin to split in valuation. Currently it is 100% speculation and 0% fundamental use-case. I like to assume day 1 of staking is .01% fundamental use-case and 99.99% speculation still.
The moment staking starts, the price will begin to split in valuation. Currently it is 100% speculation and 0% fundamental use-case. I like to assume day 1 of staking is .01% fundamental use-case and 99.99% speculation still.
Reaching .01% is a giant milestone. Collateralized aggregate data can be integrated to smart contracts and industries can begin utilizing blockchain technology in their business models.
This is a long term integration and we won’t see the exponential growth right away.
This is a long term integration and we won’t see the exponential growth right away.
My main point is staking is not the giant price rocket ship we all want, rather it is the rocket ship getting approval to lift off.
This does not mean we won’t see short-price price jumps, it just means we won’t see the long-term effect immediately.
This does not mean we won’t see short-price price jumps, it just means we won’t see the long-term effect immediately.
The tech companies like Oracle, Google, Facebook, etc will begin using collateral backed smart contracts in the beginning days and this will spark the growth.
Each new industry giant entering is raising the fundamental use-case percentage slowly lowering speculation value.
Each new industry giant entering is raising the fundamental use-case percentage slowly lowering speculation value.
As more and more industries begin utilizing Chainlink powered smart contracts, fundamental use-case percent will begin taking dominance a bit quicker. Think of this as the price rocket ship in its final hour before takeoff.
The next big step is to lower the entry cost (technological knowledge) thus allowing other competitors to use smart contracts in their business models.
This is when we see fundamental value hit its first 1-2% dominance and exponentially grow from a huge increase of
This is when we see fundamental value hit its first 1-2% dominance and exponentially grow from a huge increase of
businesses needing $LINK, all the other businesses who were pushed out due to our entry cost.
This is where the price rocket ship takes off and fundamental value overtakes speculation value. If the token could not break into fractions, the project would fail here.
This is where the price rocket ship takes off and fundamental value overtakes speculation value. If the token could not break into fractions, the project would fail here.
Too little supply for the huge demand making the monetary cost too high for the value the project provides However, the cost of utilizing Chainlink powered smart contracts will seemingly stay the same price *forever* *with some exceptions*
Thus those staking their tokens will see their token appreciate while they are getting a continually reduced amount of $LINK being returned in interest while beating the same value of interest.
Those who stake right away and reinvest their $LINK to be staked will see
Those who stake right away and reinvest their $LINK to be staked will see
Huge amounts of growth overtime as initial staking will provide the highest amount of $LINK due to the low cost per whole token.
Basically, short-term price action is literally nothing compared to what you can actually make by holding $LINK and staking it.
Basically, short-term price action is literally nothing compared to what you can actually make by holding $LINK and staking it.
For more information on tokenomics, check my pinned tweet. However, this is the simple information on long-term token price. This is without a lot of variables, maybe I’ll write something more in-depth about this in the future.
