Avareum
  • Introduction
  • Why Avareum?
  • How Avareum Works?
    • Fund Operations
    • Fund Subscription
    • Fund Redemption
    • Fund Rebalancing
    • Fee Management
    • Strategy-Aware Assets
    • Fund Tokens
    • Price Oracle
    • Risks and Mitigation Plans
  • FAQ
  • Investment Strategies
    • Introduction
      • Decentralized Finance
        • Features of Decentralized Finance
        • Decentralized Finance Architecture
        • Decentralized Finance Category
        • DeFi Service Incentive Scheme
      • Stablecoins
    • Avareum Stable Fund
      • Investment Objective
      • Investment Vehicles
      • Eligibility
        • Stable Asset Eligibility
        • Protocol Eligibility
        • Layer 1 Protocol Eligibility
        • Layer 2 Protocol Eligibility
      • Asset Allocation
    • Risk Management
      • Risk Identification
  • Tokenomics
    • AVAR Token
      • Advance Funds Investment Right
    • Token Allocation
      • Token Valuation
    • Token Auction Mechanism
    • Avareum Fundamentals
      • Supply Mechanism
      • Demand Mechanism
      • AVAR Burning Rate
      • Valuation Framework
    • Incentivization and APR
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  1. Tokenomics
  2. Avareum Fundamentals

Supply Mechanism

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Last updated 3 years ago

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The supply of AVAR is elastic. More people will be willing to sell their AVAR at a certain point in time at $10/AVAR than at $1/AVAR. Thus, we can infer that AVAR's supply schedule is up and to the right, potentially resembling a linear curve. However, the supply will be burned by the Token Auction mechanism over time, with the rate of burning correlated to the growth of AUM size (in dollars) in the Avareum fund, which will force AVAR's supply curve to gradually shift to the left side over time.