The RAE Token Halvening: A Deflationary Future Mapped off Bitcoin’s Design

In the fast-paced world of cryptocurrency, innovations often follow in the footsteps of established giants. RAE Token, draws inspiration from Bitcoin’s design, embracing deflationary principles and a limited supply to chart its own path. One of the key events in the RAE ecosystem is the RAE Token Halving, a concept familiar to Bitcoin enthusiasts. In this article, we’ll delve into what the RAE Token Halving entails, its implications for creators and the Rokfin platform, and the roadmap for future halving events.

Understanding RAE Token Halving:

The RAE Token Halving is a pivotal event that occurs every 1,700 Mints, diminishing the amount of newly distributed RAE by half. With the current distribution set at 10,000 RAE per mint, the upcoming halving in the first week of December will reduce it to 5,000 RAE per mint. This mechanism, mirrored from Bitcoin, injects an element of scarcity into the RAE ecosystem, echoing the concept of limited supply.

The benefits of a deflationary token:

• The advantages of a deflationary token, such as the RAE token, are evident in its capped supply of 34 million tokens. This limited availability contributes to heightened scarcity, especially following halving events, thereby potentially boosting demand.
• The allure of holding deflationary tokens lies in the promise of escalating scarcity and value over time. This dynamic fosters a sense of commitment among token holders, promoting long-term commitment and cultivating a robust and stable holders base.

Impact on Creators and Rokfin:

The ramifications of the RAE Token Halving extend to creators and the Rokfin platform because of the alignment it has versus traditional networks. Creators will witness a decrease in the overall amount of RAE Tokens distributed, as there will be a 50% reduction in the number of tokens minted. This necessitates the platform to procure more RAE to burn for sustaining content distribution.

To illustrate this impact, let’s explore a hypothetical scenario, assuming a constant RAE price of $1.00:

Pre-Halving:

• Mint: 1699
• Rokfin receives 2,800 RAE, distributing 7,200 RAE to creators.
• Subscription burns: 15 RAE for Monthly, 150 RAE for Yearly per transaction.

Post-Halving:

• Mint: 1701
• Rokfin obtains 1,400 RAE, distributing 3,600 RAE to creators.
• Subscription burns remain at 15 RAE for Monthly, 150 RAE for Yearly.

This scenario highlights the need for Rokfin to hold more RAE post-halving, especially if subscriber numbers remain constant. The introduction of new creators and subscribers intensifies Rokfin’s demand for RAE, amplifying buy pressure and enhancing liquidity for creators.

Frequency of RAE Halving:

The first RAE Halving is slated for December 2023, transitioning from 10,000 RAE to 5,000 RAE. Subsequent halvings are projected to occur approximately every four years until the maximum supply of 34,000,000 RAE is reached:

• 2023: 10,000 RAE to 5,000 RAE
• 2027: 5,000 RAE to 2,500 RAE
• 2031: 2,500 RAE to 1,250 RAE

Related Terms:

• Mint: The creation of new RAE Tokens, sent to network participants (creators and platform). On average, this occurs daily.
• Burn: The intentional and permanent removal of RAE Tokens from circulation.

As RAE Token embraces the deflationary ethos and limited supply model, the RAE Token Halving emerges as a critical milestone in shaping its economic dynamics. This event not only affects creators and the Rokfin platform but also positions RAE Token within the broader context of cryptocurrency innovations.