You raise an important point and I hadn't thought about the dumping being related to those who have no stake in a cub farm or den.
The 2% fee isn't enough to make up for the dumping especially when most of the funds are locked in non-cub farms and dens.
There needs to be another mechanism to drive up cub demand because I don't think there'll be that many users clamouring for cubs as they are on a daily basis.
Yes, what is that other mechanism we are searching for?
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Simplifying this but let's say someone makes 100 Cub a day via a non-cub farm/den. 2 cub will be used as transaction fee, while the remaining 98 will be sold off and converted.
Who is buying that 98 cub? No one (only the market maker)... so the price keeps plummeting. If we look at the current burn amounts that were tweeted, it is clear that it can't keep up with the amount of cub being generated.
Maybe Kingdoms and LeoBridge might be able to stop some of the decline by converting other assets to cub, creating some demand.