Limiting the number of units of Usual (USUAL) to 40,000 units (or another fixed number) may be an intentional strategy that meets several economic and strategic objectives. Here are the main reasons that may explain such a limitation:
1. Create scarcity to increase value:
Principle of supply and demand:
A low number of tokens in circulation creates a limited supply, which can increase the value of each unit if demand for the token increases.
Scarcity is a mechanism used in projects like Bitcoin (21 million units max) to maintain or increase value in the long term.
Attractiveness for investors:
Investors are attracted to scarce assets because they perceive higher potential for profit if demand is high.
2. Reinforce exclusivity and elitism:
A reduced issuance cap positions Usual as an exclusive asset reserved for a limited number of holders.
It can also attract institutional investors, or "whales," who want to own a significant share of a rare and influential asset.
3. Simplify the economic model (Tokenomics):
With a limited number of units:
Calculations for income redistribution, staking or rewards become simpler and more predictable.
This promotes better management of economic incentives (example: staking with a high APY, because the total to be distributed is limited).
4. Limit the risks of dilution:
If the protocol issued a large number of tokens (e.g. several millions or billions), the dilution could:
Reduce the value of existing tokens.
Discourage investors due to long-term loss of value.
By limiting to 40,000 units, each token retains a high percentage of control over tokenization
5. Alignment with governance strategy
6. Promote gradual adoption
7. Future expansion potential
8. Comparison with other similar projects
Some DeFi or exclusive crypto projects use limited supply to stand out
Yearn Finance (YFI): Only 36,666 YFI in circulation, making it one of the most sought-after tokens.
Bitcoin (BTC): Limited to 21 million, the scarcity model is at the heart of its valuation.
PancakeSwap (CAKE): A gradual supply limitation to stabilize price and incentives.
Risks associated with a limited offer:
1. Low liquidity
2. Manipulation by large holders
3. Risk of overvaluation
Conclusion:
The 40,000-unit cap appears to be an intentional strategy to enhance the Usual token’s scarcity, exclusivity, and perceived value. This promotes stable governance, investor appeal, and gradual adoption. However, it requires careful management to avoid risks such as manipulation or insufficient liquidity.
