The Lynchpin Tokenomics Strategy -Solving Crypto’s Volatility Issues
December 8, 2018
As it stands, cryptocurrencies in their nature are subject to severe price fluctuations, often at no cause of their own, rather by the trends and activity of the entire crypto market as a whole. Lynchpin is a new crypto token that aims to separate itself from other contenders with a use-case greater than just to be traded a speculative commodity.
Lynchpin fosters a tokenomics model that aims to ensure its token, LYN, is a stable coin that can be used as a safe medium of exchange between buyers and sellers — unaffected by hype and protected against inflation.
So how does the Lynchpin project suggest to mitigate these problems and ensure LYN is a reliable and usable cryptocurrency?
Real Adoption via Utility
The quintessential value of LYN is based upon the supporting network that’s being built around the currency to provide real utility by leveraging several proprietary products and merchant programs, such as:
LynPay Debit Card;
LynPay POS Machines;
LynPay Multi-Currency Wallet;
LynPay Merchant Adoption Program;
This utility of LYN will drive real adoption vs speculative hype and as a result provide stability in the market and allow the supply and demand to dictate the price.
Supply and Demand
Lynchpin has a total & limited supply of 5 million LYN; 3 million LYN will be locked for 12 months, which leaves only 2 million in circulation. Additionally, the LYN tokenomics model employs the Ethereum blockchain consensus mechanism, whereby no more coins are mined or staked to create more, rather the project has opted to take on the ETH gas fee so to ensure the value of the token is not diminished by inflation corrections.
Breakdown of LYN Tokenomics:
5 million LYN total supply = 4 million LYN circulating supply + 1 million reserved for the internal team and partners.
4 million circulating supply = 2 million for the private sale (locked away for 12 months) + 2 million for the public sale (immediately available after the ICO concludes once listed on major exchanges).
After the 12 month lock up period ends the projects expects the value to have increased by 10–20 times due to the limited supply and demand for the LYN token from its real adoption and use.
No Giveaways, Bounties or Airdrops
Another way that Lynchpin is safeguarding itself against inflation by pump and dumps and market volatility, is by not giving away free tokens via bounties and airdrops, etc. In a bid to attract genuine investors and a loyal community that share in the project’s long term vision, Lynchpin is avoiding such tactics as a further measure to strengthen the value and stability of LYN.
By implementing an effective tokenomics strategy in alliance with real utility and genuine LYN token adopters, Lynchpin has the potential to solve the inflation and volatility problems that are preventing the cryptocurrency industry from emerging into the mainstream.
Source: Jake.T, https://medium.com/@mtiller19034/the-lynchpin-tokenomics-strategy-solving-cryptos-volatility-issues-5f8a06f6df5a