/biz/ - Business & Finance

Here's the tokenomics for this coin:

Case 1: The price of RPL is high enough that it would be equally or more profitable to convert your RPL into ETH (or to not buy the RPL) and add it to someone else's pool than it would be to run your own pool.

Result of Case 1: Would-be validators join pools instead of opening them. Capacity utilization goes up, which causes RPL deposit size to go down, which causes circulating supply to go up, which causes RPL price to go down.

Case 2: The price of RPL is low enough that it would be less profitable to convert your RPL into ETH (or to not buy the RPL) and add it to someone else's pool than it would be to run your own pool.

Result of Case 2: People open their own pools. Capacity utilization goes down, which causes RPL deposit size to go up, which causes circulating supply to go down, which causes RPL price to go up.

Since the number of RPL needed in a deposit will tend to remain at 16 or approach 16 from either side, this means the price of RPL will be the main variable in determining the value of the RPL deposit and thus the calculation of the profitability of either choice.

Therefore, the price of RPL should tend toward the equilibrum point between the above two cases, and this equilibrium point will rise and fall with the price of ETH.

If ETH price goes up, more people are priced out of validating, which means capacity utilization goes up, which means RPL deposit size goes down, which means circulating supply goes up and demand for RPL goes down.

Increased circulating supply and decreased demand means RPL price goes down.

Can anyone refute this?