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The Terra Ecosystem in a nutshell
For those who don't know, Terra Labs is a South Korean firm who have developed with other partners the TERRA ECOSYSTEM, the most exciting DeFi universe out there. Its pretty simple, the entire network is centered around the relationship between the LUNA token and the UST Stablecoin (which is pegged to the FIAT USD by an algorithmic relationship with LUNA)
As of August 2021, UST is the fastest growing Stablecoin in all of Crypto, and is sending everything Terra to the moon.
Pylon Protocol and the $MINE governance token
Within this TERRA universe, there is a brand new Dapp called Pylon which is going to be used to manage long-term service payments, and also as Terra's project Launchpad. More information on my Pylon article here.
The Minerals Token $MINE ("you require more minerals!") is the governance token for this protocol. Staking (participation) will let you gain rewards as well as vote on any polls or changes to the protocol -the pinnacle of decentralization on these Dapps-. So the adoption of Pylon by users and providers will determine the price action of $MINE, since the token is an integral part of the rewards system of both the launchpad and the long-term deposit protocol. Well, this all seems extremely bullish, but...
$MINE Tokenomics - Large Supply, not so Bullish
10,000,000,000 (10 Billion) Tokens will be vested throughout the space of 4 years with half of them done so in the first year. This creates an enormous supply of $MINE. Even in the current bull market where $LUNA is going parabolic through UST demand, it is a lot of supply to catch up with, especially at this early stage.
For reference, the $ANC token which is the government token for the popular Anchor protocol has a supply of only 1,000,000 (1 Billion) tokens, and arguably has even more use cases than Pylon and it's gateway.
$MINE Tokenomics - Distribution and Use cases, Bullish
There are however many cool things about $MINE's tokenomics. The token is distributed within the Terra community through airdrops, staking rewards, Pylon Launchpad, LP Rewards and Depositor Incentives once the whole system is up and running. No private sales are involved, reducing the risk of selfish dumping.
The Depositor Incentives create an adoption cycle in the ecosystem, where the more projects are added to Pylon Gateway, the more UST from the Terra community (and in future other blockchains...) will be deposited. With some rewards always coming in the form of $MINE, this should bring further buying pressure to the token. And this is not even mentioning its long-term deposit (subscriptions/payments/donations) system which is going to be a main part of its business and also running on the $MINE token.
For adoption reference, the Pylon Telegram group currently only has 6000 members, and the r/pylon subreddit only has about 300 members so a lot is still to be seen.
All the information about its $MINE tokenomics can be found in their official docs.
Also, there is some information on Pylon's subreddit here.
The $MINE pool in the Pylon Gateway launchpad is currently offering around 200%APR on any UST deposits, so what do you smart people think? Are you bullish or bearish? Looking forward to reading your comments!
Other articles by yours truly:
FOR TERRA FANS | Pylon Gateway Explained | + link to best resources
Does Crypto Ownership depend on Internet Access?? 144 countries compared!!
Does FIAT Inflation lead to Crypto Adoption? 128 countries compared!
124 Countries Ranked by their Green and Cheap Crypto Mining potential
Profitability of mining Monero (XMR) on an ancient laptop
Disclaimer:
Being a content writer I try to get as much exposure as possible by posting my writings in different platforms. This can also be found on Medium here.
Also, non of the content of this writing is or should be considered financial or investment advise. I am no financial advisor, I am merely a content writer using freely available data and information to produce the best OC I can come up with for entertainment purposes. Sources for the images displayed can be found in the references below.
