xBTC (XBTC)

$270,834  -15.69%
$0.324349  -14.7%
9.076E-5 ETH -14.7%
Market Cap:
Rank #10
Website:
Contract:

0xecbf566944250dde88322581024e611419715f7a0xecbf566944250dde88322581024e611419715f7a

  
Market Cap
$270,834
24h Low / 24h High
$0.317957/$0.380412
Fully Diluted Valuation
$0
Price Peg
BTC MC Dominance % in USD Cents
24 Hour Trading Vol
$5,827
Circulating Supply
804,714 / 7,083,965
Max Supply
7,083,965
Next Rebase


xBTC Chart
Rebase Function:
Rebasing is a mechanism that is able to automatically increase or decrease the supply
of xBTC across the entire network. In order to bring the value of xBTC to Bitcoin Market
Cap Dominance (BMCD), we use supply to pressure the price in the right direction. We
translate BMCD to a dollar value: if the market price is above BMCD, supply increases; if
the price is below BMCD, the supply decreases. These changes in supply create market
pressures to push the market price towards the peg.
Instead of pegging our currency to a legacy asset that is antiquated and ephemeral (U.S.
Fiat), xBTC pegs to a metric of the future that will remain important for decades to come.
xBTC is pegged to Bitcoin market cap dominance (BMCD). If the market cap of all digital
assets is $200 Billion and BTC’s market cap is $120 billion, then BMCD would be 60%.
xBTC’s price is pegged (in USD) to that dominance, so 60% would equal .60 USD or 60
cents. We predict that Bitcoin Dominance will trend negatively, which will create more
positive rebases (increases in supply).
xBTC is fine tuned to optimize and increase positive rebases. The system we have designed is referred to as “Positive Rebasing Optimization”. We have created a token with
economics that constantly trends towards creating more positive rebases. Negative rebases are not impossible and may occur. However, our system is set up to create as many
positive rebases as possible. We have seen what we call the “negative rebase spiral”. As
our competitors went below their peg, users lost the supply in their wallet. The price
was lower and their supply of tokens was lower (pessimism ensues). As such, they sold,
which further lowered the price, causing more negative rebases - resulting in more pessimism. Negative rebases resulted in more selling, causing more negative price pressure.
This does not only happen with a “stable peg.” If an asset pegs to a positively trending
number, the same issue occurs. Let’s say an asset is pegged to the price of Ether. If the
price of Ether doubled, the asset would likely be below the price peg, so supply would
have to decrease. Holders now see a reduced supply in their wallet (and a lower price).
They then sell, causing the same downward spiral.
We are introducing a negatively trending peg to a positively increasing demand. As
people want to hedge against Bitcoin, and bet on the rest of the market beating Bitcoin,
they will come to xBTC for our Dominance Hedge. This will increase demand, supply and
price. As the dominance of Bitcoin falls, this will increase: 1) demand: people will see the
falling of dominance and want to take part in the xBTC gains; 2) supply: the price must
be pushed down; 3) possibly the price: if demand outpaces supply increases. If price
goes below the peg, the peg actually chases after that price (as it is negatively trending),
helping to match the peg to the spot price more quickly, lessening the negative rebase
spiral.

Last Update: 2021-09-17 02:06:19 UTC

 

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