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DocumentationCommunity Token Paradox

The Community Coin Paradox

On paper, WELSH represents the perfect community coin β€” truly decentralized with a fixed 10 billion token supply, no central authority, and incredible distribution across over 10,000 wallets with only 10 wallets holding more than 1% of the supply. This distribution profile is a testament to organic, grassroots adoption that most projects can only dream of achieving.

However, this perfect distribution creates a fundamental economic challenge that plagues all fully-distributed community coins.

The Bitcoin Effect

Even Bitcoin, despite its capped 21 million supply, maintains a robust economic engine through its inflation schedule and mining rewards for the next 100+ years. Every 10 minutes, miners receive new bitcoin and sell it into the open market, creating:

  • βœ… Continuous market activity through miner selling pressure
  • βœ… Entry opportunities for new participants to acquire bitcoin
  • βœ… Economic incentives that drive adoption and infrastructure growth
  • βœ… Natural price discovery through constant supply and demand dynamics

Community coins like WELSH are truly fixed-supply tokens as there supplies are hard-capped now. This creates several issues:

  • ❌ No Continuous market activity as no new tokens are entering circulation
  • ❌ No New Entry opportunities has holders are not consistently selling
  • ❌ No Economic incentives for liquidity providers
  • ❌ No Natural price discovery without arbitrage and supply & demand market dynamics

Welsh on Trading Floor

The Missing Economic Engine

Without new issuance or built-in economic incentives, WELSH holders have idle assets with no yield mechanism. The token functions beautifully as a store of value and community symbol, but lacks the financial engine necessary to drive sustained economic growth and adoption.

This creates several challenges:

  1. Utility Gap: WELSH holders have no native way to earn yield on their holdings
  2. Market Stagnation: Without continuous economic activity, trading can become sporadic or stagnant
  3. Growth Limitations: New users have limited incentives to acquire and hold WELSH
  4. Economic Isolation: WELSH operates in a closed loop without expanding economic opportunities
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