Intrinsic Storage-Pegged Value
PRL is an ERC20 token and the heart of the Oyster economy that bridges the cash flow of storage users and website owners.
PRL’s value is intrisically tied to the value of storage. As time passes, 1 PRL will equate to an increasing amount of GB in storage. This leads to interesting implications for the price evaluation of PRL.
PRL will always have a natural price discovery mechanism that calibrates with market rates of digital data storage. There will inevitably be minor price fluctuations that are not synchronized with storage prices, but PRL constantly inclines towards them. It has the inherent properties of a stable-coin as it is pegged to a commodity yet without requiring a reserve to match it’s aggregate value.
Consider if a whale where to dump 60 million PRL on an exchange, thereby slashing the price in half. The price would then be well below the market rate for digital storage. This would inevitably attract individuals and companies that are looking for storage solutions, especially those that are seeking to reduce their budgets and save money. As more users buy PRL to benefit from the inexpensive storage, the price automatically corrects back into the fluctuation zone of storage prices.
Imagine a volleyball being released from the bottom of the ocean. The volleyball shoots up violently to the surface, puncturing the waves and becoming suspended in mid-air for several seconds. The ball then finds buoyancy equilibrium as it rests on the ocean waves, elegantly levitating upwards and downwards along with them.