As promised on April 2nd, Presearch has reduced its maximum supply of PRE tokens from 1 billion to 500 million.
CoinMarketCap has updated the Presearch profile to reflect the new max supply of tokens and we are awaiting changes to our total and circulating supply to be completed.
The new maximum token supply of 500 million PRE will support the growth of the Presearch ecosystem throughout 2020 and into 2021 as we continue building our user base and transition to a model where rewards are purchased by sponsors in order to give to searchers.
With half the number of PRE as before the token burn, this will force the project to confer more value on existing tokens and increase the velocity through the system, driving more demand for PRE, earlier in the life of the project.
We will need to be even more conservative with PRE as well, which will likely require adjusting rewards paid, more strategic sales of the remaining PRE supply to project supporters and also a reduction in the number of PRE allocated to team members.
Benefits for the PRE token
These changes impact the token in a number of ways, including but not limited to the following:
- Decrease by 50% the maximum supply of PRE, resulting in twice current scarcity
- Fewer tokens for sale directly by project from reserves over the lifespan of the project, forcing a shift to either a consumptive model (where Presearch earns tokens from advertisers, as opposed to staking) or a reward offset model (where rewards are paid directly to searchers by sponsors) sooner rather than later
- Increased pressure to repurchase tokens from existing holders to replenish supply for resale
- This reduction in supply will result in a faster switch to decreased rewards per search from the current 0.25 PRE/search — we do not have a timeline for this change or a specific PRE/search reward figure at this time
- We estimate that the remaining 100m or so tokens allocated will enter into circulation over the next 18+ months, through rewards (58 million new PRE), sales to sponsors (12 million new PRE) and the granting of PRE to team members (30 million new PRE) which will happen on a multi-year schedule that will be published at a later date, providing more clarity and transparency into project holdings and token operations
We are excited about these changes to the PRE token supply and believe they will serve the community well.
Stay tuned for our next post providing information on our recent token accounting changes, including a list of Presearch project wallets to enable you to better understand the token flows within the Presearch ecosystem.
Those with questions are invited to pose them on the Presearch Community Telegram channel at https://t.me/presearch