Statera (STA) is the first ever indexed deflationary token. In layman's terms, that means a couple of things:1) One percent of all transactions are burned immediately. We've seen this dynamic before with projects like Bomb. The problem? Deflation disinscentivizes token movement, which then prevents further burning, which then drives the price into the ground. If you know your economics, that's no surprise.2) But STA is also one part of a liquidity pool which acts as an index fund (composed of 20% each of STA, wrapped bitcoin, ether, link and synthetix). By adding liquidity to the pool you gain ownership of a percentage of the index fund. This ownership is represented by equity tokens that are minted when you contribute to the pool.3) Here's where the magic happens: Balancer protocol is used to rebalance the pool when one or another token changes in price (by the way, this is crypto, the wild wild west of investing, so the prices are constantly changing)! The balancer must constantly buy and sell STA to keep things aligned. STA gets sold and bought all day, every day until the sun envelops the earth or The heat death of the universe - pick your poison. The immutability of the Ethereum Blockchain means that this process will go on forever. Burn baby burn.What does it all mean? - There is never ending demand for STA, and by extention - never ending token burn.We've been running for under two weeks and we've already burned 8% of the total supply. This is gonna get real crazy, real fast.Check out theTelegram group for a discussion about the potential on these revolutionary tokenomics, and a seriously awesome community that is growing by the day.Find the token on Uniswap:UniswapMedium ArticleEtherscanYouTube videoBalancer
Submitted June 13, 2020 at 02:17AM
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