Value Coupling is one of the key concepts underpinning Wagerr's Tokenomics. Value coupling creates a compelling value proposition for sports bettors, the sports betting industry, and for investors at every scale.
Value coupling is defined as:
The Value of the WGR token is systematically tied to the use and value of the Sports Betting Blockchain.
The Wagerr network reduces the risk to value and protects holders of the WGR tokens by linking betting volume to coin supply. This is established via the 'House edge' where 50% of the house edge is burned driving scarcity of WGR.
Value Coupling creates a self balancing mechanism in varying price dynamic.
When the price of WGR is falling, more WGR is required to make a bet of equivalent USD value, thus more WGR is burned in each bet. This accelerating burn creates deflationary pressure on the coin supply, driving upward price pressure over time.
Alternatively, when the price of WGR is rising, less WGR is required to make a bet of equivalent USD value, this reduces the WGR burned on each bet and slows the deflationary pressure.
Over time, this creates an asset that is less volatile and more accurately reflects both adoption and usage of the Wagerr protocol.
Wagerr is designed to be more than a blockchain, it is designed to be a responsive and price linked economy. For users to feel safe holding the token and to bet with it, they need to have confidence in the value backing the coin. In Wagerr's case the method of ensuring that the value grows is by driving a deflationary economy.