The first week of Cub Finance is coming to an end and with this comes a reduction in the block rewards. Currently, with each block there are 3 CUB but starting Monday the reward will fall to 2 CUB. After another week, the reward will drop again to 1 CUB where it would remain until further notice.
Emission Rate Schedule
Week 1 (3/08-3/15)- 3 CUB/Block
Week 2 (3/15-3/22) - 2 CUB/Block
Week 3 (3/22-3/29) - 1 CUB/Block
When the block rewards fall, the APR will go with it as there is a smaller reward. Currently, the DEN APR for CUB is 1000% which is quite lower than where it started when I initially staked my CUB in the DEN. Where it goes after the drop in block rewards is unknown but I'd predict it'd be around 600-700%.
There is a benefit to this reduction in block rewards that I suspect will offset the lower APR. With fewer CUB being added to circulation each day, the sell pressure reduces. With time, more users will join the platform from other DeFi protocols and we will see an increase in demand. The reduction in CUB supply and sell pressure combined with the increase in demand should drive the price of CUB up.
Here's an example of what I mean.
Say now you earn 20 CUB per day with a value of $5/CUB, that would be $100/day
Now, after the drop in block rewards you may earn 15 CUB per day but it's values at $8/CUB, that would be $120/day
So even if the CUB rewards drop, an increase in value would be a more beneficial scenario.
The EGG token for Goose Finance, a similar project to Cub Finance went from $10 -> $150 in a matter of weeks. Just wait until the masses start flowing into CUB and FOMO kicks in. We could easily see a 10x from the current price.
I'm very bullish on CUB and luckily I jumped on the project on Day 1. I've been trying to accumulate as much CUB as possible to hold because I think the project is very undervalued. I'm excited for the future and if you haven't looked into Cub Finance, I strongly recommend it.
This isn't financial advice, there are risk associated with DeFi and these can't be ignored. Do you're research before investing in anything but also remember that Cub Finance is one of the only platforms who has a tract history and a known Dev team.
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I was wondering about that.
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STOPThis is the optimal gameplay, but I am trying to wait and see instead of throwing predictions out there. Let's see what happens when the harvesting per block moves from 3 to 2 CUB and then we'll be able to move from theory to practice. Hopefully people will not panic, nor will they lose traction.
Posted Using LeoFinance Beta
I agree, I'm anxiously waiting to see how it plays out tomorrow.
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You know I think the reduction in block rewards are going to have very little effect TBH!
It will be underlying demand for the token which drives the price in the long run.
Also, we know who the tiny amount of people who hold the majority of cub are and they ain't selling any time soon.
I think most people are waiting until it goes over $10!
Posted Using LeoFinance Beta
It gives me even more confidence knowing the whales with a majority of CUB are holding long-term.
Posted Using LeoFinance Beta