Cryptocurrencies, by their nature, have no underlying value and their prices are driven by supply and demand.
Tokens demand is influenced by their utility and popularity, supply can be influenced by token issuers (in our case – by both the project developers and the community).
Utility
GRN serves as a native currency of the Green Trees auctions, games, and other community events.
In December 2022, we have been conducting auctions on the Stellar network, using this platorm as a live-like testing environment.
In January-February 2023, we’ll launch the Green Trees auctions, lottery and competitions on the Polygon blockchain.
GRN will also be the only payment option to get access to the Green Trees lending and staking facilities.
A combination of these features, as well as the possibility to sell and trade GRN on exchanges will be driving the value of this token during the initial stage of our project.
To increase long-term value of both Green Trees NFTs and $GRN, we are negotiating partnerships with other blockchain projects to provide benefits to holders of these assets.
$GRN has potential for global exposure and increased popularity among eco-minded projects and communities.
Liquidity
Liquidity refers to the ease with which tokens may be converted to cash or another digital asset without impacting the price. If there is always a large pool of potential buyers and sellers, you can rest assured that you will receive a reasonable offer for your asset.
Since liquidity allows for price stability and decreased volatility, we reserve 10% of NFT sale funds to protect the value of GRN.
Besides adding liquidity to the market, we will also use the buy-back and burn utility.
Managing supply and demand
Buy-back and burning will be used as a deflationary mechanism to contribute to the price stability, as well as to increase the GRN scarcity. This process is continuous.
The basic law of supply and demand dictates that if the supply of something decreases, then the price will have to rise, assuming demand remains constant.
When the price moves into a bearish zone based on the 20-day moving average, Green Trees buys back GRN tokens. These GRNs are then burnt, permanently removing them from the total supply.
The amount of GRN burnt is calculated in real-time based on revenues generated by the project as well as the level of community contributions. For example, we will share objectives with our community, such as selling out 10,000 Green Trees NFT for the next 3 months, that will increase the GRN burning rate as soon as these objectives are reached.