What Is Spore Engineering (SPORE)?
Software factory focused on closing the gap between traditional Spore Engineering+ instruments and industry 4.0, powered by Ethereum smart contracts on Binance Smart Chain Network. The face-value of PAPA will ultimately be determined by the market. If buying pressure is high, the price rises. If selling pressure is high, the price falls. The focus of each investor will rely upon the way in which the investor interacts with the protocol.
Spore Engineering Storage Key Points
|Coin Name||Spore Engineering|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Protocol Management & Governance
• You can get as much Spore Power Tokens as you need.
• Spore Power Tokens can only be purchased with Spore Tokens.
• Spore Power Tokens have 1:1 relationship ratio with Spore Token.
• Spore Power Tokens will represent your voting power on Snapshot.
• All Spore Tokens from purchases will be transferred to the DAO burner wallet.
A Rising Pricing Price Floor
In traditional markets, price action is the determining factor of value. This is less so with PAPA since stakers’ equity will increase over time, creating a steadily falling cost basis. Therefore PAPA balance is more important than face-value price. Stakers should care more about longer-term growth than immediate price action since the protocol dictates a rising price floor for PAPA tokens.
A Falling Cost Basis
When investors stake their Spore Engineering tokens, they will receive compounding rewards. Given that the protocol uses bond sales to create a rising price floor for PAPA dictated by the backing per PAPA token, over the long-term, price volatility is not a risk for stakers, since their cost basis will eventually fall below the backing per PAPA token.
Spore Engineering will care more about the price of the PAPA token. This is because bonding assures a static PAPA reward. Let’s assume that the price of PAPA is exactly $1 and a bonder buys a bond of $100 worth of PAPA. Their static assured reward will be 100 PAPA. If the price of PAPA now increases to $2, the bonder will gain $200 USD in PAPA.
Therefore, bonding is sensible in anticipation of increasing PAPA prices. Given that bonds are issued at a discount, bonders will also profit if the price of PAPA remains the same. In essence, this acts similarly to staking in that Bonders’ PAPA holdings will increase over time as the bond matures.
In periods of price reduction, bonding will be less profitable since the market price of PAPA could fall below the initial price that a bonder purchases. Therefore it is more profitable to buy from the market during dips. This in turn, stabilises prices and allows bond prices to re-adjust and offer discounts once more.
However, it is still profitable to buy bonds during flat price action, since bonds will run at a discount to market prices. This will have the effect of increasing APYs and making market purchases more lucrative, thus bringing market prices up.
How the protocol reacts to the markets
The price of Spore Engineering will be more volatile at first. In periods of high demand, the protocol will be able to create higher staking rewards by selling more bonds. This in turn will bring in more investors seeking wealth creation, which increases demand further. This will create a feedback loop leading to the expansion of the DAO and an increasing PAPA price. Expansionary periods also allow the DAO to increase the liquidity held in its reserves.
In periods of low demand, staking and bonding rewards will also fall. This is a natural part of price action – nobody in the Cryptocurrency space is a stranger to falling prices. When prices fall far enough, the protocol will use its reserves to buy PAPA and stabilize it. Given that this reserve intervention is a certainty, risk falls as the price falls since buying volume is anticipated.