Stobox Utility Token. Demand, Supply, and Circulating Supply
The first STBU trade was done via Uniswap on September 9th 2020. The initial price was set at 2 cents, whereas Stobox Tokenomics Model projections were calculated with a price assumption of $0.1 per STBU. A month later STBU has 300+ tokenholders and is traded way higher than the initial price.
We are deeply grateful for the tremendous support we received from people in the crypto community who share Stobox values and long-term objectives.
Expansive growth creates additional questions from the Stobox Community regarding the future of STBU Circulating Supply and potential actions to avoid pressure on STBU.
In this letter, I present considerations that will provide additional clarity:
Important notice! STBU is not classified as securities under any regulation. This creates a legal obligation for the Stobox team to not provide any promises of future token appreciation. The token is issued as a “consumer good” used to create additional incentives for the users of our products, mainly the crypto exchange.
1. Our plans are based on a long-term vision of progressive development of the Digital (DLT) Securities and Virtual Assets industry and their implementation in traditional finance. Although it is difficult to provide accurate projections at this stage, fundamentals show that the industry will grow at a very rapid pace. We set 1B total supply not to release it next year but because we expect significant growth in demand in the years to come, and such supply provides flexibility to satisfy it.
2. In the Whitepaper, we mentioned that STBU will be used across all products we build. However, in the near future, most demand for the token will come from users of the Stobox Crypto Exchange, rather than from the Security Token activity because the latter is at a much earlier stage.
3. Given a number of uncertainties, we decided to create the Tokenomics and Roadmap for the next 12 months only. Please note that the figures provided in Tokenomics are for reference use and may be altered depending on market conditions or observed demand and supply.
4. Tokenomics states that Stobox releases no more than 3M prior to the Stobox Crypto Exchange launch in late November. After the Exchange is operational we plan to release additional volumes as declared in the projections. As of today, the circulating supply is around 1.5M STBU.
5. The Tokenomics and STBU Circulating Supply Plan are based on forecasted figures of new users registration, trade frequency, average trade volumes and other parameters. Real-world figures will be different from projections, adjusting the overall tokenomics. For example, we will not release all 3M of STBU in the first month of operations (December) if the volumes are lower than projected. We will carefully adjust the supply plan to the organic development of the Stobox ecosystem.
6. We are excited about the use of NFTs and believe they are a great instrument for marketing and promotion. We issue NFTs as vouchers that provide tradable and time-limited user ranks in the ecosystem. In practice, it means that users can redeem NFTs to get reduced or even zero trading commissions for a certain time or certain trading volume.
7. On the backend level, reduced commission for NFT users is implemented via issuance and burn of STBU. That is, when NFT is redeemed, a certain amount of STBU is issued; these STBU cannot be traded; they can only be burned to reduce trading fees. STBU issued in relation to NFT redemption are included in the total supply we can issue during the months. For example, if only 3M STBU can be issued in a given month according to the tokenomics, and 2 million are issued to NFT users, only 1 million will be left to issue directly to the market. We will use this creative method not only to encourage trading but also to burn the STBU supply when there is no enough demand in the market to balance the supply. Such an approach will help to attract users who are truly interested in using Stobox products instead of speculators, further supporting stability of the system.
Our focus is a long-term development of our community, products, and value that we bring to customers. Even though the conditions and projections may change, our plans and actions are always in the best intentions of Stobox Ecosystem, its tokenholders and stakeholders.