🪙Utilization of USDC

What is the Advantage of Using USDC?

By pegging our FUNGI token to USDC, we are assuring that the price of our token is always stable. This makes it so no matter how many tokens are claimed, there will never be any sell pressure.

The Sell Pressure Problem

Sell pressure is not as much of a problem when a project first launches because everyone is buying the native token in order to create their first nodes. The problem arises when too many people have accumulated too many nodes. This leads to not enough people buying the token, and too many people just claiming their rewards and selling the tokens on the market creating sell pressure, which causes the token to decrease in price. Ultimately, this leads to a decrease in the value of your rewards. On top of that, when the price of the token goes down substantially, people are able to create more nodes which leads to even more emissions, which leads to even more increased sell pressure. This will cause the token to get beaten down even more, delaying the time for you to get your ROI.

ROI

Say you are getting paid 1% daily from your node. This means it will take 100 days to get your ROI back...if the price stays the same. Say the price of the token goes down 50% from where you bought it, this means your ROI is now 200 days. With a stablecoin, you can count on getting a consistent ROI where you won't have to worry about volatility and price fluctuations.