Can someone explain something to me please.
If the incentive is to buy wMemo straight then would the price of TIME not just continue to drop as no one will be buying it?
And if the price of wMemo is linked to the price of TIME then won’t the price of wMemo fall with it.
What am I missing? Does Time get burned if buying wMemo to keep the price stable, or something like that?
Price of TIME is meant to go down as it is an inflationary token. wMEMO compounds so the price is more “stable”.
At the end of the day, wMEMO is just wrapped staked TIME. So if the market affects one it affects the other.
At least that’s my simple explanation of it.
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Should the TIME price go down this much instantly?
No. Like every token there are other forces at play that affect the price.
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