End Of Builders Phase
A Conservative Money Supply?
Last updated
A Conservative Money Supply?
Last updated
As we said before, Legacy has Bitcoin-like tokenomics and here is another one - programmed inflation that reaches 0. What does it mean? It means, you won't be able to hire Legacy builders forever. At some point in time, the dailyMintableLegacy will reach 0. The dailyMintableLegacy starts at 100 and works it way down to 0. Once this happens the function that allows you to hire new builder will stop working.
This is huge since Legacy 💎 has been created to become a sound store of value and finite supply is a must-have property of such an asset. Creating a finite supply is going to maximise the value of Legacy for token holders.
Bitcoin has a similar mechanism - it's called halving event. Fun Fact: It is said that last Bitcoin will be mined around the year 2140. Fortunately, you won't have to wait that long with Legacy. It is estimated that last builder will be hired in year 2028, which is coincidentally, the 3rd year of 4 year crypto cycle. Historically, the 4th year has been the bull run year which has seen huge green candles on most of the cryptocurrencies. Having a fixed supply token like Legacy during those periods could indicate great potential for expanding further the monetary energy that you stored in Legacy protocol. is Michael Saylor expanding on the idea of monetary energy and laws of thermodynamics.
However, there is one condition that has to be met in order for dailyMintableLegacy to reach 0. There has to be minimum of 21,000,000 Legacy tokens minted by builders first in order to conclude the Builders Phase and for dailyMintableLegacy to reach 0. If this condition is not met, the Builders Phase will be extended by one day as long as the Legacy supply minted by builders is under 21,000,000 tokens.
(dailyMintableLegacy * dailySupplyReduction)
where dailySupplyReduction is reducing the dailyMintableLegacy by 0,35% every day. dailyMintableLegacy starts at 100 and goes down to 0 within approximately 4 years.