MetaTdex completed the second production cut on Tdex Token (TT), reducing the annual supply by 20% on November 26, 2022.
TT is the platform token of MetaTdex, one of the top 10 decentralized exchanges in the world. The recent reduction in production has raised widespread concerns amongst crypto holders and communities.
As a representative of the DEX platform, the initial price of one TT is 0.08 USDT, and the current price is 1.14 USDT. The historical peak is 7.5 USDT, and the record total return on investment is 1325%.
The crypto holders' communities are very concerned about what impact the production reduction will have. Are TT gains sustainable? Are they going to be profitable application scenarios for support in the long run?
This article will provide a deeper understanding of TT from multiple dimensions, such as platform development, liquidity, value, and revenue, in a way that blockchain communities can use as a reference when making decisions.
Consider the fair production reduction and protect Web3 ecosystem co-builders
TT (Tdex Token) mainly supports the decentralized financial ecosystem of MetaTdex, and it plays a crucial role to push Metatdex to become the next generation of Web3 solution provider. The total production of TT is 1 billion tokens, there is no private placement and reservation, and all are produced through mining. The maximum supply of TT in the first year is 140 million tokens, and then decreases by 20% every year. The genesis block was born in Nov. 2020. After two production decreases, the annual output will drop to 89.6 million pieces.
This is very similar to Bitcoin's block halving, TT production reductions will have the following potential impacts:
- Direct impact: In the short term, the number of TT rewarded by miners will be reduced by 20%.
- Indirect impact: In the long run, the reduction in market supply and the deflationary effect will drive the price of TT up.
- Ecosystem impact: Usage of TT will increase, resulting in limited availability of TT, which will boost the value of TT.
In order to avoid the monopoly of computing power, MetaTdex uses the production model “POS” to produce TT. Also, it has three types of mechanisms of Turbo, which implements delivering TT to the community through rewards according to different ecological contribution dimensions
At present, the market liquidity of TT is 251.72M, and a total of 87.85M pieces have been destroyed. The remaining 660.43M TT are divided into three mining pools:
First one: 11%TT are distributed in the transaction mining pool, and it is used for node mining rewards;
Second one: 58%TT are distributed in the shared mining pool, and it is used for mining rewards
Third one: 31% TT are distributed in the node mine pool, and it is used for MetaTdex trade mining rewards.
Reducing production is very important to the TT economic system, because it ensures TT’s consistent production rate and its decreasing rate can be predictable. Considering miners' revenue, TT's production reduction scale is only 20% each time, which is far lower than Bitcoin halving (50%). Also, the speed and the scale of TT’s production reduction can effectively limit the pace of token inflation on the one hand, and on the other hand, it protecta miners’ interests.
In a long term aspect, TT has a continuous destruction strategy (mechanism). And along with the increase of TT utilizing scenarios, TT's steady production reduction will drive up prices.
Multi-chain ecological, and a high liquidity of TT
TT is the native and governance token of MetaTdex ecosystem, with a total circulation of 1 billion. At present, nearly 25% of the shares have participated in the digital financial market, circulating in trading platforms, wallets, GameFi applications, mining, lending, and other financial derivatives. On Nov. 25th, chain data showed that the daily trading volume of TT on the MetaTdex reached $4.32 million, $3.84 million was on HECO chain, and $480,000 was on BSC.
The multi-chain structure of MetaTdex makes TT have a strong circulation kinetic energy. The essence of MetaTdex is to replace asset cross-chain with application cross-chain so that users of each chain can experience its decentralized transaction service.
Without the GAS cost for complex operations of cross-chain transfers, TT has efficient interactions (such as exchange, mining, etc.) with hundreds of assets on chains such as BSC, HECO, and polygon.
Highly active DApp applications allow the value of TT to be released to a greater extent. Moreover, many DApp products have been implanted with TT circulation. For example, the GameFi application Lucky BOX and the World Cup activities, users can join it using TT.
With the enrichment of value-added scenarios such as GameFi, SocialFi, and Metaverse, a large number of TT can be utilized and stored in some smart contracts, providing long-term liquidity for TT.
The MetaTdex decentralized financial ecosystem is constantly expanding the source of income for TT holders. For example: in MetaTdex turbo mining, users enjoy double benefits when the tokens' price and quantity increase. Metamask, TokenPocket, etc., outside the ecosystem, can access MetaTdex, and actively build channels for TT users to obtain income from other chains' tokens.
At present, TT's wallet, TDEX, trading mining, turbo mining pool, Dvote, turbo U PO, TeFi and other products launched by MetaTdex are widely used, and have interacted with different chain assets such as BSC and HECO.
The balance mechanism guides the market value of TT
In the TT token model, there are not only production reduction rules, but also it has designed a destruction mechanism, which will create a balance mechanism to maintain TT value. As of November 25, 87,854,842 TT had been destroyed.
MetaTdex has multiple destruction ways, from output to distribution, it is constantly enhancing the scarcity of TT. For example: when the total computing power of the mining pool drops to 20%, the remaining pre-issued parts will be destroyed at one time. And for trading mining, after the TT interests are sent to the corresponding TDEX trading, all the remaining TT will be destroyed. I
n terms of supply and demand: MetaTdex can ensure the scientificity of TT market circulation through the strategy of coexistence of production reduction and destruction so that the market tokens are in a state where the demand exceeds the supply. For equity (TT) holders, not only can they reap the value-added price after burning, but they also get an increase in the proportion of equity (total reduction).
In terms of income: TT output has a combination of multiple mining pool models such as sharing, trading, and nodes, and the TT community can easily reach a fair consensus. This also helps users to obtain great benefits at all stages. For example: in the turbo mining pool, early users may obtain a large amount of TT; at the same time, due to the deflationary effect caused by production reduction and destruction, latecomers may obtain a small amount of TT, but the price is much high. So TT community can have a fair consensus.
The reduction in production will lead to scarcity, and the prosperous Web3 application ecosystem will continue to increase the value of TT applications. MetaTdex is a frontier force for decentralized exchanges to go deeper into the Web3 field. It has a high degree of community openness, high-quality asset types, and convenient operation.
The multi-chain financial model mobilizes the enthusiasm for TT flow; the multiple value guarantee mechanism makes user income more stable; more DeFi, GameFi and other Web3 projects are implanted into TT circulation, which will drive considerable ecological contributors to provide TT Value added scenarios.
Multi-chain financial models support TT flow; multiple value guarantee mechanisms enhance user income; more DeFi, GameFi, and other Web3 projects are implanted in TT circulation, which will create significant ecological contributors to provide TT Value added scenarios.
Official website: https://www.metatdex.com
Twitter：https://twitter.com/MetaTdex
Telegram：https://t.me/MetaTdex_group
Medium：https://medium.com/@MetaTdex
