Analysis of the logic and potential value of prime Appreciation under rebase smart contract
BTC retreated again, and the market followed. However, there was a currency that resisted several recent big falls. It was the 100% decentralized flexible currency prime（https://primematrix.io/）. The algorithm controls the supply quantity and realizes the price control.
As mentioned earlier, prime has no fixed supply, with an initial circulation of 600000, and an initial circulation of 100000, with a price of $1. 500000 prime pieces are reserved to be put into Dao for community governance, 50% of which are injected into the mine pool to provide global coin holders with liquidity mining incentives.
In order to control the price, prime adjusts the daily supply through rebase smart contract. Ampl, yam and many other defi star currencies use this method to control their prices. To put it simply: when the price deviates from the target price, it will automatically issue additional shares; on the contrary, it will carry out deflation. Due to the existence of arbitrage, the price will slowly return to the target price. This is the principle of the defi elastic currency “rebase”.
For example: suppose there are 10000 primes in the market, and you hold 100 primes worth $1, which means that you have 1% ownership of prime. When the price of prime rises to $1.2, the rebase smart contract will be triggered to issue 20% more supply, and the price of prime will be controlled at $1, that is, 10000 x 20% = 2, 000 primes are allocated to the holders of prime according to the ownership ratio of prime, i.e. 2000 primes x 1% = 20; the wallet address of prime you hold increases by 20 primes, that is, you hold 120 primes. You can sell the extra 20 primes, but the ownership proportion of your prime will decrease, and you can continue to hold prime, and your ownership proportion will remain unchanged. The value-added way of prime is to change the quantity of currency, but not the price of currency.
The above examples are only easy to understand. In fact, as long as the price rises more than 0.5%, it will trigger Prime’s rebase smart contract issuance, and produce more prime to supply to the market. From this point of view, the hidden value of prime is huge.
Ampl of the same type aims to become a stable currency against the US dollar, but it still rose to a high value of US $3.80 in July. Compared with the frequent increase of tens of times in the currency circle, it seems to be a little “mediocre”, but its market value has increased from 50 million US dollars to 1.6 billion US dollars in a short half month, which has increased by more than 30 times. According to the above examples, this is the real income of the early investors, and the early holders are all making money. Prime is also very early. Now it owns currency, which is equivalent to the initial value of 600000 US dollars. With the future development of prime, its future is immeasurable.
