Sovryn SOV is a possible good investment opportunity.

Are you a frequent reader of my articles? You should know by now I'm heavenly invested in Sovryn, and all of my money is invested in it. That could be my bias, and this article could be completely wrong just because of that. Other than that, let me sell you the idea of Sovryn SOV, a decentralized exchange in Bitcoin DeFi sidechain Rootstock or Smarter Bitcoin RSK.

I bought it when Sovryn was at $10, and right now, as I write this article, the price is $0.62, which is over a 90% discount from where I bought it. Chances are the price keeps collapsing, but the opportunity is there that you may buy at a lower price point. This article is not financial advice, nor am I trying to convince you to believe in what I hold; it must be my way to cope with my losses and help myself in this challenging situation.

The developers trying to create adoption created a SIP, a voting process where they will pay out incentives to those willing to stake the token. The longer you staked, the more yield you would have gotten. Well, that is coming to an end because it seems stakers were selling their interest payments, which is unsuitable for adopting the whole protocol. If you staked for three years and extended, you would receive 29% a year in interest, which will end on June 30, 2022.

By next month, those that stake will only receive Earn Fees rewards, which is a revenue cut from what the whole dex earns from fees, but those staking after June 30, will not get any Sovryn tips, no more fee tokens. You may think this is an awful idea because where are the incentives for the new stakes? The incentives will only be the share of the exchange's revenue, nothing more than that. That also means there will not be people who receive tokens from inflation alone, meaning those rewards are from an actual utility.

From June 30, the current stake will receive the number of coins they were supposed to receive, around 20% a year for the next three years but after that, everyone will receive Earn Fees rewards. That means those that collect Sovryn today could not appreciate the deflation and sell, and those that understand that you need utility and not inflation could benefit.

As you may know, I left Mist token because I didn't feel comfortable with the idea of infinite money printing. As you can see in the total supply of Mist, the total of circulating coins keeps growing and growing eventually, so a giant whale will decide to sell. The whole thing will come crashing down, which is one of the reasons I am watching Verse because on their website, it says they will only have a 210 billion total circulating supply.

Sovryn, as it is right now, will only have a 100 million circulating supply unless the stakes vote in the future to increase that limit, something that I think will not happen because we all know what inflation does to cryptos. It drives them down to zero. And this is the reason why I am writing this article because I believe that starting June 30, the circulating supply may decrease a bit. The price could go up within the next three years because people will not have coins that were gotten with inflation and not extra work, and as such price could go up.

Conclusion.

If you like DeFi and don't mind the network investing in Sovryn could become a great opportunity because the project is moving from incentivizing adoption with actual utility and removing the incentives from inflation. We all know that the best money that lasts the most is the one that is acquired with work and not printed out. I believe Sovryn is in that transaction from incentives from inflation into actual real utility.

If the Bitcoin community doesn't want or need DeFi on a sidechain, the project will die eventually, regardless of whether the incentives are paid with inflation. Still, now you will have a real chance to test if Bitcoin actually could use a DeFi protocol or not. Sovryng will pay with revenue to stake that doesn't mean the project will succeed. It only means developers are willing to test if the project deserves to be called a Bitcoin dex on the sidechain Rootstock and be associated with Bitcoin DeFi and SovrynBTC.