How much can the liquid supply and price of BAY fluctuate in one day?


How much can the liquid supply/price of BAY fluctuate in one day?

The liquid supply ratio (peg index) can change anywhere between 1–3% per voting session. Since there are approximately 7 voting sessions per day, in total the supply can fluctuate roughly 19% per day (1% compounded, 21 times daily).

***Note: This rate is based on a compounding effect (during inflation) and a discounting effect (during deflation). As growth and volume of the BitBay platform increases, the rate can be adjusted to create a “smoother” change in supply.

The market price of both BAY and BAYR is still free to fluctuate by ANY amount; however, the above supply changes serves to put direct pressure on the price every 200 blocks.

See this scenario chart for a technical understanding of the relationship between equity and supply changes:

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