CTI will be strongly deflationary from launch
Many crypto projects have realised the importance of keeping their supply if not deflationary, only mildly inflationary. A deflationary supply helps projects to retain value within their ecosystem, reward holders with an asset that does not lose value, and to foster a sense of investment and longevity in the project. Ethereum, which is currently moderately inflationary, is perhaps the biggest project to have realised the importance of a disinflationary supply. EIP-1559 is set to, in part, address the inflationary nature of ETH by burning gas fees which should greatly decrease inflation.
ClinTex has designed the overall tokenomics for CTI from the ground up to be deflationary. Not only that, but CTI’s tokenomics are designed to align ClinTex with token buyers and market participants. ClinTex’s overarching goal is to drive down the cost of medicine. The use of a deflationary token supply ensures that CTI tokens will retain value, which will not only reward token buyers, but allow ClinTex to keep the costs of developing and maintaining the Clinical Trials Intelligence platform down.
ClinTex is using two mechanisms to create a deflationary supply. First, unlike Bitcoin or Ethereum, no new coins of CTI will be minted. Also when the ClinTex platform goes live later this year, there will be no additional distributions of CTI. ClinTex is currently undergoing the final stage of CTI token distribution through a staking reward event. In fact, due to popular demand, ClinTex recently made staking available on Binance Smart Chain in addition to Ethereum. The staking reward event started on 1st of April, 2021, and will end 30th of September, 2021. After September 30th the total supply of CTI will be deployed.
Second, any commercial use of the platform requires removing hundreds of thousands of dollar’s worth of CTI from the circulating supply, creating an appreciable deflationary pressure. Usage of the platform is primarily a B2B offering, targeted at the pharma industry. Usage of the platform works like this:
- A pharma client wishes to use the Clinical Trials Intelligence platform to increase transparency while also saving on costs.
- The client requires a license to access the Clinical Trials Intelligence platform.
- The client pays ClinTex $300,000 in fiat for a license (12 months minimum).
- ClinTex uses $200,000 to buy CTI on the open market and stakes the CTI purchased, removing the coins from circulating supply for at least 12 months.
- If the client does not renew after 12 months, 20% of the procured tokens are burned, then the remaining CTI is unstaked and returned to circulating supply.
This process happens for every client on-boarded to the platform. The deflationary effect this will have on the supply of CTI will be enormous, especially while CTI’s market cap is relatively small. With Clintex’s 50+ years of experience in the clinical trials industry and substantial active links with the pharmaceutical industry, the launch scheduled in Q3 2021 will start with deployments from day 1. The following graph is a projection of the percentage of staked CTI over the next 3 years:
While the main usage of the platform is B2B with the pharmaceutical industry (Big Pharma and Small Biotech as well as academic research) the CTI token is for digital asset consumers and traders that want to be a part of the fight against infectious disease through the use of blockchain. In this way, holders of CTI are akin to investors who believe in the mission of ClinTex, and are rewarded as the platform is used more and more.
ClinTex are a solution provider to the pharmaceutical industry, and the team behind CTi — Clinical Trials Intelligence: a new type of software platform aimed at transforming the medicine development industry through the application of predictive analytics, machine learning, and the novel use of blockchain technology and smart contracts in clinical trials.
Our mission is to bring down the cost of medicine and improve the speed to market of new medicines for the people who need them, through vastly reducing development costs for the global pharmaceutical industry.
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