ACT (Acet) starts with 0 (Zero) Initial Supply
Majority of Defi platforms usually issue too excessive tokens in their early phrases, commonly contributing to oversupply and shortage of demand, which is a disequilibrium between demand and supply of the token. As excessive tokens are circulating the market with low demand of buyers, excess supply of the tokens occurs. In case that the demand of the token is low, low trading volume will naturally occur afterwards, and the token price will dive below the equilibrium price.
Over Supply or Excess Supply is caused by an imbalance between demand and supply. When the demand is lower than the quantity of supply, there will be excessive supply in the market and result in decreasing the price of the product.
Over Demand or Excess Demand is also caused by an imbalance between Demand and Supply. When the demand is higher than the quantity of supply available in the market, it will result in increasing the price of the product. In economics terms, Law of Demand [3] and Law of Supply [4] occur when a buyer and a seller meet at a satisfied price and quantity. At that point, an equilibrium is established. The equilibrium will not change as long as all factors related to demand and supply remain the same. The price when demand is equivalent to supply is called ‘Market Equilibrium Price’ and the quantity of supply at that point is called ‘Market Equilibrium Quantity’. ‘Market Equilibrium’ is the state in which market supply and demand balance each other, and as a result, prices become stable as in the picture below.
For the sake of Market Equilibrium, ACT(Acet) token is created with the concept of ‘Initial Zero Supply’ to get rid of the state of oversupply by starting the project without any pre-issued or pre-mined token. With this concept, the real value of a digital asset should start with 0 (Zero) supply and then later increase the supply of the token by the demand of token builders only.
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