On Cub Finance, the rewards per block began at 3. This meant that each new block produced on Binance Smart Chain would introduce 3 cub into circulating supply. This totaled out to about 86,400 CUB per day. After the first seven days, the rewards per block was reduced to 2. On Monday (3/22) the cub rewards per block will take the final reduction down to 1.
Daily Supply
Week 1: 86,400 CUB
Week 2: 57,600 CUB
Week 3: 28,800 CUB
The initial inflation was high, but this was important and necessary to attract users to the protocol. The biggest drawback to such large amounts of CUB introduced per day was the amount of selling pressure continuing to push the price of CUB down. With each reduction in rewards, the selling pressure decreases.
CUB Burns
The DEV team has done an excellent job of burning CUB and keeping true to their word (which nobody expected differently). So far, over 100,000 CUB were burnt and there is still a lot of funds available in the treasury for more.
The impact of these burns will soon begin to have a significant effect after the reduction in CUB. The team is burning on average 6K CUB per day (some days higher and some lower), which based on currently inflation is only 10% of the CUB. Come Monday, a burn of 6K cub is 21% and the effect is huge.
CUB Diamond Hands
There's a silent factor, that's not seen on other platforms. Most of the largest holders of CUB are long time whales of LeoFinance. These individuals have diamond hands and are what will prevent the usual pump and dump seen on most yield farming platforms. I'm confident in this fact because we want to see CUB succeed and a pump/dump scheme only causes a project to fail.
One last thing that can't be forgotten, the reduction in CUB rewards will reduce the APR even further. The price will most likely drop as farmers sell their CUB and leave in search of higher yields. This drop will shake out the weak hands and allow those in for the long-haul to scoop up some CUB at a low price.
Now let's put it all together in regards to future value of CUB
- Come Monday, the CUB supply will drop.
- Less CUB = Less sell pressure
- CUB burns by DEV team will have a greater effect
- CUB whales ready to buy the dip
Add these all together and we should start to see a rise in the value of CUB. I'm very bullish and happy to continue farming at the current price of CUB to continue to grow my stack.
I personally want the reduction in CUB rewards so the CUB I own become more scarce. This reduction is bullish but not every person can see that. Be patient and just continue farming more CUB. Don't panic when you see the price dip on Monday. Remember that there are people waiting on the sidelines for this dip and it will be bought up very happily.
This isn't investment advice and don't invest more than you can afford to loose. If you want to learn more about CUB Finance there are very insightful articles all throughout LeoFinance. The discord group is also very active and come there for any answers to your questions.