In a couple days there will be liquid zing. My last post was about that and a little warnings here and there about providing liquidity and the risk involved with that, etc. In this post I wanted to talk a little about the price, it'll be a bit speculation and a bit what I think will support it.
To start off with, and this is kind of the easiest and most direct basis about its price, Hive Power delegations.
To earn Zing you currently need to either delegate, hold POSH or hold staked Zing. The distribution is 200k per day, 40k/day and 20k/day. With the current delegation of 1.6M, this results in about 400 Hive daily in curation rewards, these are rewards delegators are forfeiting which goes to the project to be used to further develop the game among other things.
So in a way, the 200k going out daily is worth about 400 Hive at the minimum which would bring the price of zing to 0.002 hive / zing. Now there are of course also another 60k going to POSH and staked Zing, and soon enough another 40k going to liquidity providers so let's call it a daily 300k zing going out which would bring the price down to 0.001333 hive / zing. I.e. selling past this price you're pretty much just losing value (unless you don't care cause the POSH you've held has been earned "freely" or you're looking to ROI on the POSH you've bought to get this zing or other reasons where you're just trying to get as much Hive from it as possible and won't care.
What this also tells people is that if the price of Zing goes lower than this, it is worth more to buy Zing than to delegate to earn. Will be interesting to see what happens at that point.
It will also be interesting to see when people start adding liquidity to earn more Zing cause keep in mind that when you add liquidity it takes into effect the price at the time as far as I'm aware.
It's also important to remember that there may also be people who can't delegate much currently but still want Zing to stake it for long term or to provide liquidity with it.
There's already quite a few factors at play here so will be interesting to see how things unfold once trading officially starts.
At this point in the post I kinda wanna talk about my own strategy to accumulate Zing. Of course not financial advice and I can't guarantee that what my plans are will happen so take it with a grain of salt.
I started unstaking Zing with one of my accounts after the first staked rewards occurred, I'll be using that small amount of Zing to provide liquidity, maybe even sell a little to get the price to a realistic number compared to a couple buy orders I saw on the market at 0.1-1 hive each. I started unstaking a couple other accounts with 1 day break so I'd get more Zing from their earnings after a day and two to provide liquidity. Keep in mind that LP rewards only reward you once every 24 hours and you will have to have been in the pool for at least 24 hours to begin with (not sure if the 24h rewards are at a certain time or how that works exactly, we'll have to see). So my goal there is to provide as much liquidity as I can for the 40k daily Zing rewards.
The thing with staking and Zing rewards is that they'll eventually find a balance. I.e. if I have too much Zing + Hive in the liquidity pool it means I'm getting less from there than if I just had the Zing staking instead and vice versa. You have to also account for the liquid Hive in this case where it would also be earning 8.5+3% APR if staked. This was one of the reasons we decided to have the LP provide a good chunk of distribution.
So my plans are to continuously delegate Hive Power for Zing, continue staking some Zing for the staking rewards, provide liquidity for the staking rewards and if I feel the price is a bit too low at times I'm going to scoop some Zing up and potentially provide more liquidity with that or stake it.
Similar to Hive, this is a longterm "investment" for me, i.e. a couple to 4-5 years, but of course if some crazy events would occur I would try to take profit if anything to maybe buy more for cheaper later. We know how crazy these markets can get. Another thing I'm going to be looking forward to, though, is to make use of my Zing in the game, host some tournaments, do some giveaways, tips in the discord, etc, all in good fun.
Anyway, looking forward to continue working on this game and am pretty excited of what it could become if things go well. Hoping to share more about it soon and talk more in posts such as these, thanks for reading!
Images were created with Midjourney for this post alone.
