The proof of brain token (POB) has gotten a lot of people excited and interested over the past few days. The token price has jumped significantly and is currently at parity with HIVE 1:1. The next step will be parity with LEO tokens which is currently attainable. But this has got me thinking, why is the POB token blazing away and where is its value coming from? Here are my thoughts on the reasons why:
The first reason is its relative scarcity in terms of maximum tokens. Following Bitcoins tokenomics, the POB token is capped at 21 million tokens overall, but the interesting thing is, there will be halvening events, just like Bitcoin too. All of this means that the tokens won't be fully distributed until somewhere in the 2100's, long after I am no longer here! This makes the token distribute quickly in the beginning, but slow down over time. Getting in now will get you value for money. This is unlike many of the other tokens on HE, LEO, for example, has a continued inflation rate which is being addressed through the burning of tokens.
Distribution is wholly through Proof of Brain. Apart from the market on HE, initial token distribution occurred though 1 single token held by the parent account. This means that nearly all tokens have been distributed by the community through upvoting content and rewarding bloggers. A unique token distribution method that I haven't seen yet. No bank of tokens were distributed to any one user apart from the 1 single token at the beginning.
A strong community that wants to see this token succeed has come to life. Competitions and discussions about improvements to the front-end, etc. are already on the radar and/or happening which contributes to the success of the token. I can see this community going from strength to strength as long as the token continues to be distributed widely and the @proofofbrainio account continues to seek out new adopters and reward great content.
Looking forward to seeing how this community and token evolves into the future. Keep on POBBING!
Thanks for reading.
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