1) Explaining why ZZZ is dumping, and will keep dumping in the current situation. (Even when without taking bugs into account)
Let’s imagine ZZZ is $1k, total supply is 20k, and there is no NAP.
To summarize: 20k ZZZ = $20M
That’s the market cap of the entire ZZZ community.
Now we create NAP out of thin air, total supply of 20M, suggested 1kNAP:1ZZZ ratio.
To summarize: 20M NAP = 20k ZZZ (Market cap of NAP)
But money isn’t created out of thin air, the market cap of the entire ZZZ community stays the same.
To summarize: 20K ZZZ + 20M NAP = $20M
NAP essentially doubled the total supply of ZZZ.
Our money is split between ZZZ and NAP.
2) What would make ZZZ and NAP go up in value ?
NAP has been created, dilluted our ZZZs and there is no going back.
The only way to increase ZZZ and NAP is to increase the money coming in the ZZZ community.
Creating a new token would only dilute our market cap further.
3) The Solution
We can copy what Crypto.com has done successfully with their Syndicate programs.
- You stake and lock your tokens for a duration
- You receive rewards in a token that already exist somewhere else
Stake 10k NAP for 1 day, receive 100COVAL/day
Stake 10k NAP for 7 day, receive 120COVAL/day
Stake 10k NAP for 30 day, receive 150COVAL/day
It solves the problem by connecting to outside money.
ZZZ is NAP, and NAP is ZZZ, so rewarding ZZZ for NAP is a snake feeding on himself.
We need to feed on others.
Every week we should anounce a partnership of this sort. And we fund it using the staked NAP.
The more successful the previous pool was (how much new money has come in), the more we can re-invest in the next pool (next token).
That system would be far more profiteable for the community, as opposed to reward ZZZ with NAP.
Let’s use the strategy Crypto.com has been using to become the giants they are now