Trying to understand Tokenomics

Hi guys!

Trying to understand a couple of things re.the token.

1- Apart from speculation, I’m assuming the token will grow in value if more users join the platform to provide and buy services. Eg. say we if there was hypothetically 1m AGI token available on the platform and 1m in transaction, then 1 AGI=1. If transactions rise up to 2m then AGI=2. Is this correct? Any other ways the token could gain in value (apart from specualtion)?

2- Staking allows the platform to have more liquidity to mediate the exchanges between services providers and buyers. Now, what would happen if the number of people staking isnt enough to cope with the number of users on the platform? Would the price of AGI start inflating? But in that case, wouldnt it be a good thing for people NOT to stake in order to increase the price of AGI?

Haha, I’m sure htere is something I’m missing here, but this is why I’m here: to understand what I don’t understand. :slight_smile:

Thanks in advance!

Hey, Max. Nice to meet you.

  1. Yes, you are right. Supposing more people used the platform, then AGI would racket up in price accordingly. That’s the main thing. If AGI gets really popular right now and major companies need SingularityNET’s services, then its price would obviously go up due to increased demand. I don’t think that your calculactions are correct though. I don’t know if the amount of transactions (movement) is exactly the same as its value, although there obviously is a huge correlation.

  2. In regards there not being enough liquidity on the Staking platform, I don’t think this is a real concern because the price of AGI would go up in the scenario more people are using the service. Also, there are many counter-measures to a liquidity-crisis and this is really, really unlikely to happen with the current scenario. If more people used AGI, then that would not mean inflation, but effectively DEflation; because the price of the coin would go up instead of down. That is, of course, supposing there is no diluting or printing of the monetary currency to match up its demand.

Feel free to ask me any other questions.