As the Pencils Protocol completes the IDO of DAPP on platforms such as Tokensoft, Bounce, and Coresky, and DAPP simultaneously goes live and starts trading on Gate, Bitget, Bybit, and Kucoin, it signifies the full operation of the Pencils Protocol ecological economic system.
After the trading of DAPP opens, the token has also launched short-term Staking activities on Gate, Bybit, and Pencils Protocol, with reports indicating that the Staking APY ranges from 50% to 800%. The high APY has attracted a large number of DAPP token holders, including airdrop users and new investors, who actively participate to earn higher returns in cryptocurrency, significantly reducing the early market circulation of DAPP tokens.
As the Pencils Protocol continues to drive a series of market advancements, the low circulation DAPP is expected to continuously capture value in the subsequent market and enter a new round of deflation.
What role does $DAPP play in the Pencils Protocol ecosystem?
$DAPP is an important core asset in the Pencils Protocol ecosystem. Holding DAPP tokens grants various functions and privileges, including enhanced staking rewards, higher leverage privileges in the Vaults section, and more opportunities for allocation of LaunchPad project quotas in the Auction section.
Similarly, in the Auction section, $DAPP also serves as collateral for trading NFTs and real-world assets, integrated into DeFi products to achieve liquidity and lending, allowing users to enjoy fee discounts when using Bridge and DEX services.
As a comprehensive yield platform within the Scroll ecosystem, Pencils Protocol offers essential functions, whether it's the multiple capture of points from Farming, leverage mining and asset management in the Vaults section, or the upcoming Auction model. This is especially crucial for whale investors, LRT project parties, and AI and FHE projects that also need services from Pencils Protocol, indicating that the demand for DAPP is certain and ongoing.
Pencils Protocol has clearly stated that it will regularly conduct buybacks and burns of $DAPP, for instance, the Vaults will use 30% of their profit to buy back DAPP tokens to accelerate its deflation, and other sections will gradually use profits to buy back DAPP tokens.
Therefore, from a mechanical perspective, DAPP will have essential demand, especially with the destruction mechanism that will continuously generate deflation.
Low circulation DAPP
The total supply of DAPP tokens is 100 million, which is not much compared to other tokens with total supplies often in the billions of dollars. From the token distribution perspective, almost all sections have lock-up periods; for example, the public offering round has a lock-up period of 8 to 12 months, and the airdrop round also has a certain lock-up period, with 50% released at TGE, 25% released 30 days after TGE, and the remaining 25% released 60 days after TGE.
Currently, only a few million DAPP tokens are circulating in the market, and at this stage, the launch of a series of Staking activities on different platforms has greatly restricted the early circulation of DAPP tokens. Especially with the launch of the Vaults product, the market demand will further reduce the market circulation rate of DAPP tokens.
This also means that DAPP chips are scarce and will be easier to pump in the future! Market sentiment is still driving more people to participate in buying, aiming for long-term positioning.
Buying pressure far exceeds selling pressure; smart people are buying!
Currently, whether on Gate, Bybit, Kucoin, or Bitget, buying pressure far exceeds selling pressure, indicating that many smart people are accumulating chips, waiting for long-term opportunities rather than selling in the short term.
This indirectly proves that most people are optimistic about the long-term development of the Pencils Protocol ecosystem and the long-term value of DAPP tokens. According to the current market situation, DAPP's FDV is only 40 million dollars, which is inconsistent with the project's narrative and severely undervalued. Therefore, this stage represents the lowest cost for holding and positioning DAPP.