I wanted to repost Yankeeruinx's post about supply because I don't think it got as much attention as it should have because the the craziness of the past few days. It makes a strong argument for why we should see a price rise above what you would expect with a high supply coin.
XFUEL was created to solve a problem, how to fund the development of XTRABYTES? See, XTRABYTES isn’t some corporate backed project with a $100 million budget for marketing and it doesn’t have a fancy ICO to raise funds. If it did, it would have $80 million set aside for marketing and development.
All XBY coins are in circulation so there isn’t some secret supply stashed away anywhere that the Development Team can sell off to raise capital. So something had to be done to solve this dilemma and that’s where XFUEL comes into play. However, XFUEL does much more than simply provide development funds as you will see below.
Before XFUEL, the STATIC node setup had LEVEL 1 (500,000 XBY) and LEVEL 2 (250,000 XBY) nodes as follows:
STATICS XBY Supply
LEVEL 1 512 256,000,000
LEVEL 2 1024 256,000,000
Total 1536 512,000,000
That would mean the XTRABYTES platform would run on 1,536 STATIC nodes and there would be 138 Million XBY left in circulation. This would not allow for affordable LEVEL 3 (125,000 XBY) nodes to be registered, as that would require a supply of 768,000,000 XBY, far more than the permanently fixed supply of 650,000,000 XBY available.
This is where XFUEL steps in, by fulfilling the STATIC network and making it even more decentralized. While node holders can still register their STATIC entirely with XBY, they can now use both XBY and XFUEL to accomplish the same goal.
By including XFUEL, one can register a STATIC node with a ratio of 67% XBY / 33% XFUEL. This is what the STATIC node network looks like now with the addition of XFUEL:
STATICS XBY Supply XFUEL SUPPLY
LEVEL 1 512 168,960,000 87,040,000
LEVEL 2 1024 174,080,000 81,920,000
LEVEL 3 2048 174,080,000 81,920,000
Total 3584 516,120,000 250,880,000
As all nodes are registered, around 134 Million XBY will remain in circulation to be used as a payment system for modules on the network. This system more than doubles the stability of the platform by adding 2,048 extra STATIC nodes.
XFUEL/XBY will be the first trading pair on the new XTRABYTES Decentralized Exchange (DEX) platform called the X-CHANGE. This is a double win because:
1. It allows people to buy XFUEL.
2. XFUEL/XBY showcases the X-CHANGE so people can witness proof of tech. This will allow the X-CHANGE to expand and add more pairings like you would expect from a traditional exchange but with full decentralization.
XFUEL is a brilliant solution to a complex problem. XFUEL provides a funding method for development and more than doubles platform stability. XFUEL also plays a roll in registering a STATIC node and node holders will earn XFUEL fees by securing the X-CHANGE. Since XFUEL doesn’t dilute the value of XBY value, as active XBY circulation decreases, it is literally a win for everyone who holds both XBY and XFUEL.