OWY vs BTC vs USD
These are comparisons between OWY, BTC, and USD that help everyone understand the differences in their monetary circulation systems.
Last updated
These are comparisons between OWY, BTC, and USD that help everyone understand the differences in their monetary circulation systems.
Last updated
On the left side of this diagram, it illustrates the fixed nature of BTC's total supply, which remains capped at 21 million. The release of BTC into the market is determined by miners, who receive BTC as rewards for mining. These miners can choose to either hold their newly mined BTC or sell it in the market to cover mining costs or take profits. This suggests that BTC operates with an inflationary mechanism that has a defined upper limit, rather than being deflationary.
On the right side, the diagram depicts the continually increasing supply of USD, which is determined solely by the Federal Reserve (FED). This indicates that the value of USD will decrease over time, as the exact amount to be printed and released into the market is unknown. It is also unclear how much of it will be circulated or held in reserve, and who will benefit from this new currency.
As the total supply of OWY starts at its maximum with no mint function, the supply of OWY will decrease over time, making it deflationary. This ensures that no additional OWY will be added to the ecosystem after launch.
Over time, the quantity of OWY in circulation will decrease due to three key factors:
Supply contraction: A fair deduction mechanism is in place to squeeze economic value, reducing the supply.
No supply injection: There are no additional mints of OWY, meaning no new tokens will be injected into the ecosystem.
Primary source: The majority of OWY is initially held in liquidity pools (LPs) on Uniswap V2, making it the primary source for the public to acquire OWY. By utilizing the on-chain DEX, every trade will continuously activate the Supply Contraction Mechanism from the moment of launch.
Additionally, it is challenging for other exchanges to become the primary source or market for OWY, as Uniswap V2 is currently the primary market where the majority of OWY tokens can be purchased, and it supports all price ranges. However, while this scenario is likely, it is not impossible for other exchanges to emerge as major markets. As the first exchange, Uniswap V2 offers buyers the benefit of minimal tax deductions due to the time factor in Supply Contraction. However, in the future, other exchanges may provide advantages such as greater liquidity and better quotes, potentially offering the best prices.
In Owy's economic model, saving with strong belief, knowledge, and patience can shift one's fortune. Such hope and possibilities only exist in a deflationary economy.
