RE: Weekly Current Situation Report (6.9.2025)
You are viewing a single comment's thread:
Hello. The number of Cent in circulation is still around fifty million. However, the maximum supply has been reduced to 100,000,000 Cents. There are deep economic reasons behind the strategy of distributing fewer Cents. But we can explain it simply as follows: Decreasing the number of Cent also reduces the likelihood of their value depreciating.
For example, when the maximum supply of Cent is 1,000,000,000,000, it would be natural to add 1,000,000 Cent as LP rewards to the Hive/Cent liquidity pool. However, when the maximum supply is 100,000,000, adding 1,000,000 Cents as LP rewards to the same liquidity pool would produce an anomalous result. Therefore, we will now prefer to distribute other tokens, such as HBD, Hive, Bee, etc., in liquidity pools instead of Cent. This method will create pressure to increase the value of existing tokens in circulation.
Thank you for the response and the clarification