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It’s been 8 days since the VELO token (VLO) came out on Nov 4th. The token was allegedly released by Super Mises, the superhero version of Ludwig von Mises, one of the most well-known Austrian Economists in history. This is of course, an anonymous team operating behind this alias.
In the first week of inception, the token was already entrusted with $2.6M in dollar value by its newly found community. The token is farmed by providing liquidity to certain pools on their website, velotoken.fi. At the time of this writing, the VELO community is undergoing the “Foundation phase”, where 30% of all tokens are farmed in as little as 2 weeks.
What makes VLO different?
While the VELO token combines functionalities from Ampleforth (rebasing), Compound (governance) and YAM (incentivization), it has a very unique set up. Firstly, the finite number of VLO, which is 100M, is to be fully farmed in only 1 month. The last VLO will be farmed on Dec 2nd of this year, after which the “rebase” functionality will kick in.
Instead of rebasing based on price, VLO rebases based on its ‘velocity’ (circulation in the market). This relationship is inverse, meaning the higher the circulation, the shorter the supply, and vice versa. The rebase function can be triggered every 12 hours, by any VLO holder.
What happens after December 2nd?
This is the big question regarding the VELO token. So far, “Super Mises” has only disclosed that the rebasing functionality will occur, and that the relationship is inverse. This should cause the supply of VLO to decrease instantly. After this point, the total VLO supply will be fully determined by how much the token circulates.
The “new kid on the block” still has a small community, which seems to view the project as “unique” enough to pay the opportunity cost for participation. How many more people will join the project? What will its market price be? How will the token behave? All of this still remains to be seen.
Learn more and join the conversation in the VELO community:
Protocol website: velotoken.fi
Twitter: https://twitter.com/SuperMises
Telegram: https://t.me/Velotoken
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