A series of actions of ENF to promote the rapid development of NewEOS is exciting, while the builders of DefiBOX continue to create greater benefits for holders as well. This article will analyze the significance of the DIP 47 proposal to BOX holders from three perspectives, and the logic that BOX and EOS may rise in the near future.
1. $BOX value upward spiral
The proposal said: “With the new plan, a positive development of BOX and an upward spiral of the tokenomics will be gradually achieved”, which is a great change in the strategic direction worthy of excitement.
At present, BOX has built a relatively complete financial system, and has completed the difficult transition period of high inflation, entering a boosting period of value upward spiral. The following figure briefly but clearly shows the spiral structure: BOX price up→ mining reward up → market-making yield up→ TVL up → protocol revenue up → BOX burn up→ BOX price up.
A range of external factors will also boost the spiral and produce spillover benefits. Among them:
- Yield+ revenue, new protocols revenue, transaction volume (VOL), mining weight, and more EOS ecology factors will accelerate the spiral and encourage the price of BOX to rise up.
- The increase of TVL will also lead to the rise of EOS price and more ecological value spillover.
2. BOX’s satellite protocol expansion
The proposal said: “Defibox plans to make more products and proposals in the next six months, optimize the BOX staking model.” Rising BOX price will bring more development momentum into a new satellite protocol expansion phase, include:
1) The Balance protocol, puts USDT yields on EOS at the forefront of the industry. Compared with several common USDT pledge yields, Binance is only 0.28% ; Pancake is 2.54% ; Curve is 0.72% ; and BOX is >8% , leading the industry. In addition, the upcoming listing of USDT-EOS on main exchanges such as Binance and HuoBi will contribute to a rapid increase of TVL.
In addition, we can find the corresponding USN protocol, which makes the borrow cost of stable-coin on EOS lead the industry as well . The stable borrow/pledge APY is only 1.00%.
2) New Vault.defi protocol. Vault.defi is a new satellite protocol explicitly listed in DIP47 proposal, and its huge potential influence is worth looking forward to.
3) More potential expansions. I have listed more details in the previous article:3 charts reveal the huge value that Yield+ will bring to EOS and BOX, which also analyzes the long-term value that Yield+ will bring to both EOS and BOX.
These new and original protocols are expected to increase the TVL and stimulate the price of BOX and EOS.
3. $BOX Deflation and PE
BOX will also enter deflation due to the DIP47 proposal only according to the current data, the conservatively estimated deflation balance point is 1.09 EOS/BOX, and the PE of the technology industry estimates that there is a 2–4 times space for the uprising of BOX price.
1) Issuance in circulation. According to the BOX mining weights on EOS, the current total monthly issuance of BOX is 47329.8. However, 30% of the BOX is in a phased non-circulation state according to the BOX issuance agreement, so the monthly amount of “Issuance in circulation” is actually only 70%, or 33130.8 BOX/month.
2) Burned BOX. DIP 47 data shows that 45% of the monthly protocol revenue can reach 36k EOS after the Yield+ is included. Using the price of 0.93 EOS/BOX , the corresponding burned amount is 38709.68 BOX/month.
3) Deflation balance point. According to current data estimates, the amount of burned BOX exceeds 16.84% of the issuance in circulation, it’s a deflation. And the deflation balance point=36000/33130.80=1.09 EOS/BOX. However, the balance point is dynamic, at least the increase of BOX price itself will drive the increase in protocol revenue.
4) PE data of BOX. In addition, if BOX is used for market making or stored in BSS, it will obtain an annualized rate of return of 6.6%-14% (without considering the increase brought by Yield+). That is to say, the corresponding PE value is 7.14–15.15. Compared with the current 10-year average PE of the US technology sector of 27.4 , there is a 2–4 times space for the uprising of BOX price.
Summary
In conclusion, DefiBOX’s upward spiral channel has been formed, new protocols and opportunities will add more TVL, and BOX is currently at the bottom of the price.
As the head Defi project of EOS, the value increase of BOX will become one of the most important factors for the value increase of EOS. So, please let us participate in the construction of DefiBOX DAO, help to promote the growth of BOX, and witness the outbreak of the New EOS ecosystem!
A new start!
Your EOS/BOX donate support is important, My EOS wallet: dalio.mlt,
Note: The above content only represents personal opinions and does not constitute investment advice.
