ELEPHANT Token Supply Management System (Growth)
The various products and services offer by the Elephant Money ecosystem work autonomously and harmoniously as a unified token locking machine, through this process the available “sellable” supply of ELEPHANT token is continuously being reduced.
Funds from TRUNK minting and Futures deposits are used to finance the Elephant Buyback System, the primary source of growth for the Elephant Treasury.
The smaller the percentage of the total supply that is held by the liquidity pools the higher the price rises.
This concept is at the core of Elephant Money's architecture.
By design the Elephant Treasury maintains a growing hold on the ELEPHANT tokens supply, protecting the price by having several consistent sources of token inflows (primarily through buybacks) while having a disproportionately small amount of token outflows as it operates as the payer of last resort for the debt in the ecosystem.
Screenshot of the Elephant Treasury's Token Inflows vs Outflows from the Governance Dashboard
The supply locking mechanics are in place to insure that the liquidity pool’s token supply dominance (vs The Elephant Treasury) drops continuously as time goes on, thus creating a sustainable long-term increase in stability and price for ELEPHANT token.
This provides an excellent store of value for holders and also allows the Elephant treasury system to use the price appreciation of the ELEPHANT tokens held to "take profit" and pay the yield owed to Elephant Money Futures participants, Elephant Money Farms participants, and STAMPEDE bondholders.