LYN Tokenomics Plan to Counter Inflation & Speculation Problems Inhibiting Crypto’s Adoption
December 9, 2018
As the name suggests Lynchpin is a cryptocurrency that was created with the intent of being a stablecoin. The birth of the LYN token was with a clear purpose to overcome the most crucial challenges that are currently impeding the widespread adoption of cryptocurrency by the general population.
Three of the major predicaments that make it difficult for a decentralized currency to rise up and finally be appreciated for its true value, are: speculation, lack of real utility and inflation.
Hype triggers speculation, which ultimately creates a bubble that is bound to burst. Lynchpin’s proposed solution to this, is to avoid freeloaders that come as a result of bounties and airdrops etc., and rather only take on genuine investors who’ve paid for their LYN tokens, thus they’re far more likely to be aligned with best interest of the currency long-term. In other words realadopters.
Furthermore, by effectively creating legitimate demand by a proprietary merchant adoption program, plus a strategically low and somewhat controlled supply of LYN, the longevity of the currency is far more promising as it is valuable in much more than a speculative way. However, the proof will be in the pudding.
Lynchpin have created a utility token with applied benefits, now in the present. LYN token holders can use LYN to purchase physical goods directly from its partnered platforms. This is significant, due to the fact that Lynchpin is still in an ICO phase and already providing real utility.
The demand of LYN token is further increased by leveraging several proprietary products and programs, such as the LynPay Debit Card, LynPay POS machines, and LynPay multi-currency wallet, which will all coordinate with the LynPay merchant adoption program (having already partnered with several e-commerce merchants).
Generally speaking mining and staking are the mechanisms used to create more tokens, and as a result increase a given cryptocurrency’s total supply. Unless executed to perfection, this method results in inflation, with the last person to invest affected the most — as their newly purchased tokens instantly become less valuable.
Rather than creating a new token supply, Lynchpin opts to pay for the Ethereum gas fee and leverages the 18 decimal point model in aid of instilling intrinsic value. Additionally, there is a total and maximum supply of only 5 million LYN tokens. Of this 5 million, 3 million will be locked in escrow for 12 months, leaving only 2 million in circulation.
The 3 million locked away is comprised of 2 million for private investors, and 1 million is reserved for the team and partners. Obviously private investors, the Lynchpin team and partners have a vested interest and are less likely to dump tokens upon the commencement of this holding period.
This limited supply of circulating tokens, alongside an increase in real adoption via tangible and valuable utility, will consequently increase the demand of the LYN token.
By implementing this tokenomics plan, coordinated with the adoption sincere investors, Lynchpin bodes to achieve stability in the market and allow the judiciously calculated supply and demand to dictate the LYN price. Ultimately, the aim of the LYN token is to be a highly rewarding cryptocurrency with realutility, and reliable, lasting value. If executed successfully, Lynchpin could be the preferred payment method and currency of the future.
The public sale (first round) for the LYN token is on now, with no minimum purchase to participate. For more information, head to the Lynchpin website, or to monitor the project’s progress and see regular updates check out the Lynchpin social pages on Facebook, Twitter and Linkedin.
Source: Louis Martin, https://firstname.lastname@example.org/lyn-tokenomics-plan-to-counter-inflation-speculation-problems-inhibiting-cryptos-adoption-876c33a53e3e