GLX will be burnt
The first round of GLS validator nodes will be live in a couple of minutes. In this first round, each node will go for $1000 GLUSD and 500 GLGT or roughly $1050.
GLUSD is the stable coin, of sorts within Genesis League Sports. Think of it as a version of DEC that actually works, for now, at least.
The market still tinkers with the price from time to time but with not so much activity for now, there are little concerns about depegging in the short term. The future is unknown and when we get to that bridge, we will cross it as we've always done.
The first round of presale will see 1000 Validator nodes hit the streets of Hive. Buying them up will invariably require at least $1m worth of GLUSD and 500K GLG tokens as well.
Based on my preliminary findings and by findings, I mean I just looked at Hive-engine data, the total market cap of GLUSD is a bit over $511k. That is technically enough to buy around 511 out of the 1K nodes on sale.
Burning good sometimes
The way I see it, a decent chunk of GLX tokens will be burned in the coming days, as the wealthier of investors try to throw their hat into the nodes pool. I reckon they will be looking to convert a healthy chunk of their staking rewards into GLUSD to buy nodes.
Assuming all the $511K worth of GLUSD is put into buying nodes, a healthy proportion of GLX in circulation will have to be burnt to produce more. I'Assuming we were to go by today's price of GLX, around 13.2m GLX tokens at $0.037 per token will have to be burnt in order to buy out all the nodes in the first round of presale.
The GLX numbers on Hive-engine and in-game are quit perplexing. Hive-engine offers easier to rea information and shows that GLX has a market cap of around $56m.
Now I don't know how true or not the aforementioned marketcap is but if true, even burning $489k worth of the token should positively influence the price of the token. We're also working under the assumption that the price of GLX stays at $0.037.
It is not out of the question to think that there will be individuals and groups looking to maximise their GLX holding by leading a wave of cordinated pump attempts that will in turn reduce the number of GLX tokens required to generate GLUSD.
It is all speculation at the end of the day but what we know for sure is that there will be a lot of GLX token getting burnt in the coming days. How will this affect the price of the token? Time will tell.
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If you were around back then, how was it in case of Splinterlands??
Thank you for holding virtualgrowth token. You have been included in today's post.
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Thanks for sharing! - @libertycrypto27