Is Genesis League Sports Governence Token GLX Overpriced?

The infrastructure enabling the staking of Genesis League Sports(GLS) governance token GLX went live on November 9. 100 million GLX will be distributed as staking rewards in 12 months. GLX has been airdropped daily for two weeks to SPS stakers. So no one has a large amount of GLX. That's why the return on GLX staked in the early period exceeded 2000%.

The launch of the GLX staking rewards turned the GLS platform into a DEFI application. When I saw the attractive GLX prices on the first day, I sold about 1000 GLX I had won as an airdrop for 250 Hive. If I had kept them, I would have sold them today at 720 Hive because GLX has created hype among investors. Yesterday GLX surpassed SPS and DEC with 63k USD trading volume on Tribaldex. The GLX price has also increased six times that of the SPS that originated it.

Since 100 million GLX is distributed as a staking reward in 12 months, 274k GLX is distributed daily. Currently, 2.35 million GLX has been staked. So 1 GLX earns 0.11 GLX per day. This account shows that if the conditions remain the same, we can double the GLX we stake in 9 days. Over time, staking returns will decline, but this decline will take time because there are no early-term investors to pocket all the profits. Everyone benefits from the GLX airdrop to the extent of their SPS investment.

Is The Actual GLX Price Reasonable?

It is possible to answer the question by dividing it into two according to the short and long term. The GLS platform will become extremely valuable in the long run. The GLX airdrop also had a significant impact on my investment in Splinterlands.

On the other hand, it is interesting that the value of the GLX has increased by six times that of the SPS that originated it. I mentioned above that this is related to the 100 million staking reward. So what does the math tell us about this?

To evaluate the price of GLX healthily, we need to know the token economy. We still have airdrop and staking income options available to access GLX. Both will allow the production of 100 million units of the GLX in one year. One hundred million GLX will be distributed to liquidity providers, validators, DAO, and players each. These distributions, which have yet to start, will be spread over 65 months. So, at the first stage, it will be enough to deal with the GLX caused by the airdrop.

It's been 18 days since the GLX airdrop started. This period corresponds to one-twentieth of a year. This situation means that 5 million of the 100 million GLX have been distributed to the SPS stakers. The number of GLX staked is 2,350,000. Are the remaining GLXs staked? There is such a possibility as returns are still high.

Assuming the GLX staking rate will remain at today's level, the GLX staking yield will halve after 18 days. After 54 days, the yield will have decreased to one quarter. Due to the daily 11% staking return, our GLX number has increased more than five times in 2 months, despite the declining return. This calculation explains why the GLX costs six times the SPS. I believe selling GLXs and buying SPS would be a better strategy.

GLX Potential

The above calculations show that the GLX acquired early is more valuable. What about the GLX price at the end of 2023? The answer to this question is closely linked to GLX's token economy.

Based on the MLS league, the Genesis League Sports platform allocated 600 million tokens for its first game, Goals. The remaining tokens will be used in new projects based on other leagues. A deal with a major European football league will put the price of SPS and Hive to the moon along with the GLX. The same scenario would apply to an agreement with one of the USA's favorite sports leagues.

On the other hand, we can expect the interest in GLX to increase after the game starts to be played. Genesis League Goals will be an original game, and if football fans appreciate it, its contribution to the Hive ecosystem will be significant.

Conclusion

The interest in GLX can be explained by the vast potential of the platform as well as the token economy. It is also essential that the community members show this interest at a time when the market is not doing well.

I want to remind GLX hunters that GLG card packs can be staked from the end of January. Therefore, GLG card package holders will also start earning GLX from the end of January. The card packs, sold for $5, will increase to $10 at the end of January.

At Hive, things are moving along with the motto, "bear season is for building." 2023 will be an essential year for the Hive.

Thank you for reading.

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