Things are moving ahead hot and heavy for xPOLYCUB. As any of the regular readers know, the Polycub platform is geared for sustainability. Since the first week, I felt it crucial to focus upon xPOLYCUB.
POLYCUB is a deflationary token. The design is an accelerated halving similar to Bitcoin. This scarcity should help to provide long-term value, if the platform is sustainable. The fees structure along with other recent announcements are all going to feed into that.
That said, all along, the deflationary focus should be upon xPOLYCUB in my opinion. This is also seeing a decline in the numbers as time passes. Since the PC/xPC ratio keeps increasing, we are seeing the number of potential xPOLYCUB decline.
This is a very important point that everyone should heed. In short, xPOLYCUB is going to be very difficult to amass in the future.
During the weekly Leofinance AMA, 
He stated that, according to his calculations, 61% of POLYCUB is being directed to the xPOLYCUB contract. This is enormous. It is also reflective of the concept of rewarding the Diamond Paws.
Realistically, this is nothing more than a simple numbers game. As more POLYCUB ends up in the contract, less xPOLYCUB potentially can be created.
This asset is going to get very scarce over the next few weeks.
At present, the ratio is 15.67. This means to generate 1 xPOLYCUB, it requires 15.67 POLYCUB. To reverse it, each xPC is now worth 15.67 PC.
It is a number that will only go up as time passes. This will hit 20, then 25, and 30. The only question is how long it takes.
This is a bit misleading since there is really no cap. Since POLYCUB will always be distributed, we are dealing with a virtually unlimited ceiling (up to the total cap of 25M). However, for practical purposes, there is a cap on both since it will not be reached for decades.
The reason for this is the emission rate will eventually get so small that it is insignificant. That means the new POLYCUB will be minimal compared to the rest that is out there. Again, this is similar to Bitcon.
Hence, for the purposes of our illustrations, we target a distribution of 7.241 million POLYCUB.
Dividing that number by the 15.67, we see the present potential xPOLYCUB cap of 461,966.
Here is where we stand right now.
We are slightly above 150K. As stated in the past, I estimate we will come in between 225K-250K xPOLYCUB. That is all that we will effectively produce.
This is the latest update with this valuable asset.
Essentially xPOLYCUB is shaping up to be a unit of collateralization. Hence, as discussed by numerous people, we are looking at the basis for a lending platform.
This also brings in another variable that most do not consider. The idea here is to never sell your xPOLYCUB. It was another subject covered on the AMA.
Why would you sell the tokens when you can simply take out a loan which not only compounds one's ROI, it also enhances the platform? The key to the USD price is for demand to exist for POLYCUB. As the protocol gains more value, it has the need to buy more. This should push the price up.
Of course, this is absent any other additions to the platform. There was a Tweet quizzing the community about the prospect of adding HIVE and HBD to the mix. This is where the leveraging of other established assets can be really helpful. Plus, we can presume the innovation is not stopping there.
Effectively what we are doing is constructing a system that can simply keep increasing the Total Value Locked (TVL) over the next few years. The system is self-sustaining because the protocol is going to have ownership stake. This means that it will start to get paid, just like any other LP provider. The difference is this is used to ultimately buy more POLYCUB.
This is a rapidly evolving system. It is one of the advantages to being a community driven initiative. For example, the idea of the AMM for HBD has 
If you found this article informative, please give an upvote and rehive.
gif by 
logo by 
