How Selling USDO Promotes Price Growth

Many of us are used to coins’ value going off a cliff when holders massively dump the coins, no one wants to be the last person holding onto a coin that everyone else is selling out of as with each seller, the value of the coin will continue dropping. USDO is built to be different.

Example 1: No one sells out USDO

Starts off with 4 BUSD and 4 USDO

• Collateral = 4 BUSD

• USDO circulating supply = 4

• The current rate is 1 BUSD per 1 USDO

No one bought or sold any USDO

• Collateral = 4 BUSD

• USDO circulating supply = 4

• The current rate is 1 BUSD per 1 USDO

We add in 4 BUSD from MiaSwap's transaction fees

• Collateral = 8 BUSD

• USDO circulating supply = 4

• The current rate is 2 BUSD per 1 USDO

Example 2: A user sells out 75% of the total supply

Starts off with 4 BUSD and 4 USDO

• Collateral = 4 BUSD

• USDO circulating supply = 4

• The current rate is 1 BUSD per 1 USDO

A user now sells out 75% of the supply, burning 3 USDO and taking out 3 BUSD from the collateral

• Collateral = 1 BUSD

• USDO circulating supply = 1

• The current rate is 1 BUSD per 1 USDO

As we can see, there’s no change in the value of USDO.

We add in 4 BUSD from our MiaSwap's transaction fees same as example 1

• Collateral = 5 BUSD

• USDO circulating supply = 1

• The current rate is 5 BUSD per 1 USDO

Due to the lowered circulating supply, each BUSD added to the collateral gives the remaining USDO more value.

Comparison

In this sense, USDO is a little better compared to other normal cryptocurrencies.

• The more users sell out USDO, the more valuable each remaining USDO becomes.

• The value of USDO can be maintained right down to the last holder.