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The CORE token powers the entire ecosystem. |
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CORE has a limited supply of 10,000 tokens.
This limit causes actions inside the ecosystem to have a deflationary effect on the supply of the token and in turn affect the entire network. Additionally, the protocol has burned more than 80% of the total supply bringing the circulating supply close to ~1505 tokens.
The ecosystem is built in such a way that every token transfer incurs a 1% Fee of Transfer (FoT). FoT is a mechanism by which every time a token is moved from one address to another, a percentage from the tokens (FoT) is directed to the protocol. The 1% FoT is split between two agents of the system: 93% of this fee goes directly to the staked coreDAO in the CORE Vault and 7% goes to the protocol-owned treasury.
Furthermore, the liquidity of CORE's Ecosystem is permanently locked which means that the liquidity pool tokens cannot be broken into their underlying tokens.
Locked liquidity empowers CORE to have a floor price, which enables lending and other products. The floor price of a token is a minimum amount of DAI that this token can be redeem for at any time (e.g., one Core token is redeemable for its floor value via cLend at any time). Users can decide to loan out their CORE (or coreDAO) for DAI with the option of paying it back or running the risk of liquidation which burns their collateral further decreasing the limited supply of CORE.
In addition to Locked LPs and the FoT, CORE raises its Total Value Permanently Locked (TVPL) by using Automated Market Makers (AMM) like Uniswap that charge a 0.3% trading fee for LP holders. Since liquidity is locked this means that the ecosystem is constantly growing.
The architecture of the CORE network creates several compounding loops inside its ecosystem that directly affect the valuation of the whole ecosystem.