Helo crypto mates. My question is simple but is like know the end of arcade game. What will happen if a project has total supply of 100Million token and put it's 90% token as staking reward. Also token has a utility too to buy it. And every one just keep earn those token by staking . And higher chances 90% token will go to public hand sooner or later When reward pool is end. Will it not cause negative effect in token price and everyone just keep dump their staking reward tokens and keep dumping token price.
Now question is that how can balance the equations token price not dump but gradually keep increase time to time. Should buying demand of token rate more than staking reward earned by users?
Basically want to know how a proof of stake reward feature token can survive and keep increase it's price.
If 90% of the token is staking reward, then only 10% of the token will going into the circulation.
This 10% of the token will be staked and the reward will goes to the circulation slowly from the allocated 90%.
There are few ways to prevent dump of the price, burn, buyback, etc.