The $SARCO Tokenomics Road So Far
By Jonny Ringo 7/28/21
$SARCO in the world of tokens and crypto is still very new, being created in January of 2021. In this Article we will go over the tokenomics, and what has happened thus far to affect overall distribution, price fluctuations, Liquidity, and anything else I can conjure of importance.
In the beginning… No…Early in the charts, there was very low Liquidity and Low Volume. Some days there was even zero volume in trades.
The Pool Opened at a recorded $206 on TradingView, and quickly dropped as more Liquidity was added($SARCO) to a more stable price. The price then bounced between approx. $0.87 and $3.20 up until April 21st. During this time Liquidity changed a few times, but volume remained low, so price didn’t see much action in any short window of time. Note the flat lines.
On April 21st, TradingView Shows a large spike in price and trading Volume. The price reached a High just over Approx. $12
This Spike was caused by a couple of different factors on the market at the time.
1. Liquidity in the pool was very low (around $50k)
2. A small trading group made a “call” within their community, leading to rapidly increased volume.
These 2 factors combined created the right circumstances for the price increase and fluctuations noted.
After this fluctuation calmed down, the price went through several more fluctuations as Liquidity began to increase from Mining and Liquidity Farming payouts over time, and individuals providing more Liquidity to the pool.
This time period Introduced a lot of factors to the Market.
1. More incentives were introduced on 5/12/2021 for individuals to provide liquidity to the pool. The news caused a price increase up to 6.40 from the previous low. This was followed by a sharp sell-off once the Uni-V2 incentive opened. (blue dot marks the 12th of may)
2. During this time, The market was in flux, and $ETH took a downturn, causing $SARCO to follow, as it’s value is backed by $ETH value currently.
3. With increasing market size/Liquidity, Price movements become more shallow and less extreme on the same volume, seeming to “flatten out”. Liquidity has grown from the $50k, to now currently approx. $650k, and saw highs over $1mil. Volume has increased, but not as quickly as Liquidity has in the same time frame.
4. Some Whales took the increasing Liquidity as a chance to exit positions, netting profits and causing some price drops.
5. Several News Articles(Decrypt,BitOoda…), Twitter mentions, Private promotions, and other Information releases have caused spikes in price as is typical for newer tokens.
Currently the $SARCO price has been ranging between $0.90 and $0.48 for a little over a month. Liquidity has continued to grow. While $SARCO is Early in the market, it remains largely speculative; However there are some factors that will become more dominant in the market as the Holder count and market size continue to grow.
1. 100 million Capped total Token Supply. This will shrink as tokens become lost by users or burned by the protocol.
2. Holder count and total supply Circulating Growth. The balance of Holders vs. Circulating supply will change with time. Currently 3.5 million tokens will be released to the general public by May 12th, 2022. Holder count at the time of this writing is 360 holders. This is more than double the holder count taken before the May Incentive pool launch.
3. Tokens held by Devs, DAO investors, and Early supporters will be released mostly on a time release schedule of 2 years. This is in addition to the 3.5 million tokens released to the general public.
4. Grants will be disbursed at a time when the network usage is high enough to justify an airdrop to Users or Node Operators. Users(Embalmers) are planned a 2 million token Grant, and Node Operators(Archaeologists) are set to receive up to 17 million tokens in Grants and Incentives. These Incentives are planned, but ultimately fall on DAO Votes to pass.
5. Listings and Places $SARCO is available will have an impact. Currently $SARCO is available on several DEX Aggregators including MetaMask, Zapper, and 1 Inch. CEX Listings will also be a large impact on the Market, but must be backed by the votes of the community.(more on this below)
6. DAO funding will play a part, as it will empower the community to make decisions that will affect the token overall via votes. These votes can send/receive SARCO, or other funds placed on the DAO.
7. Protocol Usage will be the biggest factor driving the economy of Sarcophagus in the coming months and Years.
The last item I want to cover is CEX listings. (Binance,Coinbase,Kraken, etc..). These listings are a bit tricky to undergo due to a few factors.
1. CEX’s by nature are NOT decentralized, and follow Business Procedures. This makes them sometimes unwilling to work with entities such as DAOs without some market coercion and guidance.
2. Most CEX’s have asked for a listing fee of at least $50k to list. If this were to be paid, it would have to be paid from the DAO, which requires community votes to pass.
3. On top of the Fee, Liquidity in $SARCO may also need to be granted for the listing. This would give the exchange a very large market share and some price control.
While these factors are still an issue, a CEX listing is not impossible. It will require however, a forward thinking Exchange, willing to work with communities instead of corporations.
I hope this dive into the SARCO-nomics has been helpful in understanding what has happened with the market so far, and the possibilities of the road ahead.