An index fund is a fund that can track a specified basket of underlying investments and in this case: BTC, ETH, LINK all balanced with STA.
The rules are that these coins are set in the fund at a specified percent so as one goes up or down the others are automatically bought or sold to balance risk and maximize profit. HOWEVER, the key is that STA is deflationary (whenever an STA transaction happens for buying/selling/pooling, 1% of the transaction of STA is burned). This token burn + tokens being locked in pooling pressures prices up to again make sure the other coins will be balanced. You also are given a % of all the fees paid in STA transactions up to 36% APY and during a run up to 40,000% APY.
The power of STA is that the ripple effect of: (1) compounded fees, (2) token burn, (3) price pulled up by ETH, BTC, and LINK leads to an exponential effect and positive feedback loop on price.
Can the team dump? No, this is the most decentralized token as the project much like BTC is out of Satoshi's hands, STA is out of the hands of the devs who only own
In 3 months we burned 15%. If volume doesn't change and we only MAINTAIN our current volume, then (0.85^6) our supply is down to 32 million tokens by EONY...
If we MAINTAIN our rate of steady price growth due to tranasction fees put back into the STA ecosystem without any new buyers beyond uniswap ONLY (not the 4 new exchanges and future exchanges) the mcap by EONY is (1.2^18) of the resistance mcap or 400 million USD by EONY without any other help (DOGE and COMP are 450 mill NOW).
This would put the price of 1 STA token at $12.50 USD WITHOUT accounting for any new exchanges, new integrations, new price vibrations from ETH, LINK, BTC movement/pumps/dumps, and without accounting for the bullrun or BALANCER being listed on coinbase. Now remember that the ripple effects from the above are exponential.
Again, if we freeze market action in place then the price is $12.50 per STA EONY. Do you see how $100 EONY is FUD?
Yeah. I'm a Sta fan, but I don't get the logic of this post at all. Someone needs to explain it to me. Surely it depends on many more factors than just a simple pattern like that.
Colton Cruz
Everyone assumes that market cap will maintain while the token deflates. But a year from now, why would people buy into a system where supply is so much smaller and harder to buy from, when there are people holding more than they ever could because they bought at the start?
Statera deflation and "volume farming" is just collecting fees from other people trading statera, there's no actual value flowing into the statera ecosystem except from people buying the token (which is where tendies/yams/whatever meme ponzi coin of the month also gets their value), and from the balancer pool, which isn't special to statera and is also so small (400k last i checked) that it doesn't have any meaningful effect on the price.
I.e. statera isn't a scam but doesn't produce any value, any gain is coming from other statera holders/buyers. The balancer pool is not special to statera and would probably be more effective without statera involved.
Caleb Lee
Some people only want to look at the negatives. Either because they're FUDing to fill their bags on the cheap, or because they cannot handle a positive community around a project they don't believe in. Statera has both archetypes on Zig Forums.
