What Happens When A Crypto Project Hits Maximum Supply?
What happens when a Crypto project hits maximum supply as it is going to happen within the next 10 years on some projects?
When we talk about crypto generally there a re some serious large numbers involved especially when it comes to market caps and total token/coin supply of the various projects. We know Bitcoin has a maximum supply of 21 million, but that isn't a worry right now as that supply will be issued up until 2140. What happens though if the project you are invested in is ending it's supply in 2032?
COTI issues it's final tokens on February 4th 2032 which is less than 9 years away and has got me thinking what happens next as the project doesn't suddenly stop. There will be a maximum of 2 billion COTI by then and no more is going to be issued so what happens to your stake that is earning x amount of COTI per year?
Honestly I have no clue what is the next step besides trying to own as many of them as possible by then. Being a top 10 000 staker would require 200K COTI which by then should be an easy number to achieve as 9 years is still a long way off especially in crypto years.
Does your stake become like a share then of that project earning dividends as there is no more COTI being paid out daily. The project doesn't just end so there must be another game play we don't know about yet and one I am trying to think how this will all work.
The circulating supply may drag this out for a few more years, but if everyone staking is not selling and continues to accumulate then the price will have to rise considerably. I am sure plenty investors will sell but the liquidity will still become a problem at some point down the road.
The rarity aspect may change how people think as overtime the price will only go up which will fuel even more demand. If you sell then there is no guarantee of buying back at a cheaper price as there is more risk involved now.
We haven't seen this scenario yet in Crypto as these are still early days and not something I have really thought about as 9 years is literally around the corner.
I know many of us don't think long term and 2025 is long term in most minds so 2032 is a life time away, but it is not that far off. Surely there is a plan in place beyond this as by then all the developments and goals will have been met with new goals in place. COTI is a business and was wondering how does it continue if there is no more COTI freely available?
Maybe I am missing something that is obvious or they are going to mint another coin alongside COTI which I don't think will be the case or use a stable coin in order to pay the APR as earnings won't just end. I think it is a great problem to have and why I will be continuing growing my bags as I want to be part of this problem.