$REVU token utility — Tokenomics
When a crypto project issues a token for people to use, the most important thing is to have a clear plan about how the token will work in the ecosystem the project is building, within the ecosystem (blockchain, L1/L2) where the token is minted, and/or in some other ecosystems (projects). That plan is called tokenomics (economy of the token), and it’s usually the most important part of a crypto project’s whitepaper. Good token tokenomics is especially important to users and future token holders because most people will decide to support the project, its products, the ecosystem, and eventually the token if there is a clear vision of how the token will find its place in the overall setup.
Besides a clear token distribution and a good unlocking plan, having good tokenomics means having a good plan for how you’ll create demand for your token. Obviously, many crypto projects are issuing their tokens without any of the above but can still create FOMO (fear of missing out) around investment in their tokens. Those tokens are often called meme coins or even shitcoins because there’s nothing — no clear economy behind the token besides a speculative nature — for early token holders if the wider audience is yet to come and invest in the token. Again, those setups may work for some time. Still, in most cases, after the hype is gone, and if the project doesn’t have any other mechanisms to create demand after the token (token utility), those tokens will not attract new investors, and the price of that token will fall rapidly. In most cases, it never recovers again.
To avoid the scenario of a dead token, many long-term crypto projects build something meaningful, focusing on how their token holders will be able to utilize the token and, consequently, what will create demand for their token. The whole point of every project is to bring new users to the ecosystem and make them use their token in a way that will bring them benefits and create demand for the token. With a growing user base, a clear token utility will create demand, and, most importantly, with limited supply of the token, the token price should go up. That is the ideal scenario for both the project issuing the token and its users. When it comes to all the above, the Revuto team took a lot of time to set up a good environment for the REVU token within the Revuto ecosystem, meaning there are setups in which the token has its place (utility) and should result in a growing demand for the token.
As in every other economy, you have supply side and a demand side. So let’s first start with the supply.
Revuto issued 280,125,000 REVU. The number may seem random, but those 125k (not a round number) were put there to show that the Revuto team tried to come up with an exact number, not a random round. Having a clear reason why a specific number of tokens will be issued and during what period the first step towards a good token setup (tokenomics) is.
Many projects mint crazy big amounts of tokens and, during the ICO/IDO, go out with a very small (limited) circulating supply to artificially create a big demand on a small supply so the token price can go up, which often results in a very high token market capitalization in early stages. Such setups may attract investors in a short time because tokens can perform well at that particular moment. Still, with time, when a very big amount of tokens need to release into the circulating supply, the token price will suffer. In short, having a very high market capitalization in the early stages doesn’t help the token price to rise significantly in the future. In that regard, the Revuto team went very conservative with setting up our tokenomics, giving much room for the token price to grow. An approach like this may seem unattractive in the early stages because market capitalization may seem very low compared to other early-stage projects. Still, in the end, it should allow a much bigger opportunity for new and early token holders and investors.
Also, the users should always do proper due diligence on the project because, often, pure numbers shown on services like Coingecko and Coinmarketcap don’t explain everything right.
What is the circulating supply?
Circulating vs. maximal token supply is an important indicator of the project’s stage. Early projects have a big portion of token distribution not released into the market. Still, there should be a clear understanding of what that means. The project can have many tokens locked up and waiting for release to team members, advisors, early investors, and similar parties. Also, in most cases, there are tokens held by the project itself. Those tokens can be reserved for the treasury and allocated for marketing, development, airdrops, incentives, etc. Again, it’s important to understand all the reasons and the schedule during which the project will release its tokens.
In our case, 74,071,891 REVU tokens are in the circulating supply, which transfers to 26.44% of the maximum supply (all tokens minted). Still, there should be a greater understanding of the project and how the circulating supply is calculated to know what that number means exactly.
How do Coingecko, Coinmarketcap, and similar services calculate circulating supply?
When listed on those web pages, every project can self-report numbers and provide API and exact information about the number of tokens in the main wallet to which all tokens were minted. By those services, whatever leaves the main wallet where the total token supply was minted is considered a circulating supply. So even if the project moves tokens from the main wallet to other wallets representing specific pools, those tokens are still kept within the project and are considered as released into the circulating supply. On the other hand, tokens may be released to the users, but they decide not to use/move them, meaning they are released into circulation but not moved from the main wallet. As you can see, the information on those web pages may not always represent how many tokens are actually released into the market (circulation).
Revuto sold 32% of its total token supply during the ICO, and all those tokens are vested, meaning that all 32% are unlocked and at the disposal of our investors. But as you can see, they’re not considered to be in circulation because many users decided not to move or use them. We helped them make that decision by allowing them to stake those tokens to get even more tokens as a reward for not using (moving, selling) them while there’s no utility for the token. Those incentives aim to make people keep (HODL) their tokens and stay with the project until the tokenomics start work, creating more demand for the token.
Most projects, alongside selling tokens to early investors to fund the project and allocating tokens for the team, advisors, partnerships, and similar, have a treasury, meaning the company will use those tokens in a certain way during a certain time. How many tokens are allocated for each of those (token distribution), and what the release schedule is for releasing those in the circulating supply, besides the utility (creating demand), is the biggest factor affecting the token price. Revuto decided to keep the remaining supply available for the team plus advisors (15%) and the company (53%). That 53% (over five years, planned) will be used for incentives and financing of the project.
The token price
Every token price is calculated according to the tokens available in the circulating supply and the demand (how many people are ready to buy it). Now let’s move to the most important thing: creating demand. If there’s a clear utility, the reason for the token exists in the first place, and the specific mechanisms in which that token will be used, the token should be able to create demand. And with a growing user base, that demand should also grow, meaning the token price will perform well. We believe all projects should have a clear vision of their token utilization. In the case of the Revuto ecosystem, many setups are specifically built to utilize $REVU tokens. Those are incentives on one side and specific setups creating demand on the other.
Incentives: referral program rewards, cashback rewards, staking rewards
Utility: Stake to become a Premium user, Stake to Subscribe, Staking Center (staking, farming, buying, investing, liquidity providing…), buy Subscription and other Revuto NFTs, use REVU to top-up VDCs and pay for the subscriptions, and similar.
As shown in our video, within the Revuto ecosystem, there are many setups in which $REVU is required to be able to use the product, which is a prerequisite for creating demand for $REVU from a growing user base. As a result, with growing demand, and a growing user base, the token’s price with a limited supply should go up with time. Also, the project may create additional demand for its token by adding utility outside its ecosystem. This can be done by partnering with other projects and businesses. Please watch our video to learn more about the utility of the $REVU token.
Your Revuto Team
In case you missed:
📣Revuto’s Bi-Weekly Progress Report: 09.03.2023–23.03.2023 — Read now
💼 Office Day — Watch some highlights
🚀 REVU listing: Trading is live on KuCoin and Gate.io 🚀
📲 Download the Revuto app now! — Available for iOS, Android, Huawei
🎥 Revuto Deep Dive — Watch the video
📻 UK Radio campaign — Listen to our slot
💫 Unique Revuto NFTs — See all NFTs
🎥 Our co-founder Jos on Cardano360 — Tune in at 38:20
🎂 Our Token Generation Event (TGE) aka REVU Token birthday — See the event
🎙 Cardano live podcast with our co-founder Jos — Listen to the podcast
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