BADGERUSDC
Badger DAO / USD Coin
crypto

The price should tend toward zero, **yes!** But *toward zero* is NOT zero. It's still technically *infinitely* more than zero.
If the price of BADGERS is 2000 sats, that's a "no brainier" 100% APY, which is absurd. We know it won't stay there. And everyone should sell their tokens immediately, because (as you/we understand) the token is going back toward zero.
But if the price of BADGERS is 2 sats, that's still a 0.1% APY, which is still better than nothing, if there were no other product in BCH DeFi that was as safe as BADGERS, people could/should still collect that yield.
So a rational actor can still end up with more Bitcoin Cash, if they staked BCH with BADGERS at 2 sats a token. But at those *really* low yields, there is a miner fee of 1000 sats and a lock fee of 1000 sats (to prevent spam), so someone would have to stake a more substantial amount before coming into profit. But someone with 1 coin would hit profit after a week, which is better than some other staking protocols on network with stupid fees.
Eventually, if the price is too low, people will stop staking badgers entirely, that effectively cuts badger emission to zero. You know what happens next. When the printer stops, we'll get hyper-badger-deflation.
Because this is a real market, and people can actually move the price. A single actor can come in and say, "Let me buy 10M Badgers at 2 sat a piece, I am the yield." They might spend $60 to buy out the entire BADGER market supply. Boom. Honeybadger ain't dead.
***
But also, there ARE competing products offering similar risks profiles in Bitcoin Cash DeFi. So if rational actors can go get a 0.5% return with FBCH, that will also affect the floor on BADGERS. Badger inflation should start dropping as soon as the rate for staking badgers drops below competing products.
So even **without** an irrational actor buying Badgers to establish a floor, there will still be a bottom token price that's supported because people cut off the supply by moving to other products.
***
If people get accustomed to a couple years of the price of BADGERS hovering between 10-40 sats per token, they might look at that and offer to accept Badger tokens as currency for their good or service, at a fixed price of 20 sats per token (1% APY). If it's trivial to subscribe to someone's thing with a CashToken, someone could set up a support button with a range of tokens they accept and select that they support Badger like a stable token pegged to BCH, because that's essentially what it will be.

The price should tend toward zero, **yes!** But *toward zero* is NOT zero. It's still technically *infinitely* more than zero.
If the price of BADGERS is 2000 sats, that's a "no brainier" 100% APY, which is absurd. We know it won't stay there. And everyone should sell their tokens immediately, because (as you/we understand) the token is going back toward zero.
But if the price of BADGERS is 2 sats, that's still a 0.1% APY, which is still better than nothing, if there were no other product in BCH DeFi that was as safe as BADGERS, people could/should still collect that yield.
So a rational actor can still end up with more Bitcoin Cash, if they staked BCH with BADGERS at 2 sats a token. But at those *really* low yields, there is a miner fee of 1000 sats and a lock fee of 1000 sats (to prevent spam), so someone would have to stake a more substantial amount before coming into profit. But someone with 1 coin would hit profit after a week, which is better than some other staking protocols on network with stupid fees.
Eventually, if the price is too low, people will stop staking badgers entirely, that effectively cuts badger emission to zero. You know what happens next. When the printer stops, we'll get hyper-badger-deflation.
Because this is a real market, and people can actually move the price. A single actor can come in and say, "Let me buy 10M Badgers at 2 sat a piece, I am the yield." They might spend $60 to buy out the entire BADGER market supply. Boom. Honeybadger ain't dead.
***
But also, there ARE competing products offering similar risks profiles in Bitcoin Cash DeFi. So if rational actors can go get a 0.5% return with FBCH, that will also affect the floor on BADGERS. Badger inflation should start dropping as soon as the rate for staking badgers drops below competing products.
So even **without** an irrational actor buying Badgers to establish a floor, there will still be a bottom token price that's supported because people cut off the supply by moving to other products.
***
If people get accustomed to a couple years of the price of BADGERS hovering between 10-40 sats per token, they might look at that and offer to accept Badger tokens as currency for their good or service, at a fixed price of 20 sats per token (1% APY). If it's trivial to subscribe to someone's thing with a CashToken, someone could set up a support button with a range of tokens they accept and select that they support Badger like a stable token pegged to BCH, because that's essentially what it will be.