What Happens to UNICOIN if HIVE Pumps?
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This post is not financial advice. Also this post applies to all tokens in the system but I will mostly be referring to UNICOIN for simplicity.
Every once in a while I get asked about what happens to the token if HIVE pumps. The answer is not much if anything will change. It's designed to be sustainable if/when HIVE pumps.
What I speculate is if there's a bull run on HIVE that some people will sell their UNICOIN. That's perfectly fine. Each token is backed by more than 2x and every new mint is backed before mint so even if every single person sold their tokens, there would be no change from the user/hodler perspective. The project would still be stable.
The bot would still function and the account would be in excellent standing. This is by design.
If that happens say half the UNICOIN supply is bought back in a short period of time some of those tokens will be burned. Some will be put into the tip bot account. Pretty much what happens now it would just be at a larger scale. Since every token is backed by well over 2x in assets this is not even something I am remotely concerned about. I could buyback every token that exists right now and it would not hurt the project.
The account will continue to earn through curation just at a slower rate. It will also earn interest on staked HIVE just at a lower rate. I will still earn from posts and LP earnings to back new mints. Also if there was a mass buyback I would have a large amount of tokens for the tip bot pre minted. I likely would not need to mint new tokens for years. Kind of like right now.
I understand why this is a concern because many tokens out there are not prepared for events like this. In fact there are a few that come to mind that would be devastated if HIVE pumped long term . Mostly the devastation would come from the fact they don't do buybacks , aren't prepared for mass buybacks/can't afford them and their tokens aren't backed before (or even after) mint so likely when/if folks sell to cash out on HIVE the token price will crash and maybe never recover. Of course this is speculation. This does not apply to every token but for some yes this would be a disaster long term because they are not prepared for this.
UNICOIN and related tokens/projects are all designed for the worst case scenario. Lol that HIVE price pumps would be a "worst case". Yes please let me live in that worst case scenario.
Right now there is a huge advantage in that earning HIVE is actually quite easy. That HIVE, most of it it powered up, remains powered up to plan for a future in which HIVE pumps for a long time or even settles at a higher price.
In fact I look forward to that time if it arrives. Bring it on.