Supply and Demand

TRCs and TCCs will flow into the market as they are minted. They will be made available to buyers who either wish to purchase-and-burn the tokens immediately to obtain permanent ownership of the credits, or to purchase-and-hold for later sale, potentially at a higher value. Putting the token on the open market (in liquidity pools,) is critical to providing liquidity, reducing volatility and ensuring that the price for the commodity is consistently determined by the market, and visible to all. The minting and burning of TRCs and TCC will set the supply and demand dynamic in the market and as well as determine the circulating supply. Note, an important component of TRC and TCC pricing is the probability factor that a stakeholder will ultimately want to purchase and burn the token, and the price at which the stakeholder will be willing to do so.

$CARROT, on the other hand, will be pre-minted and have a fixed supply, at 10 billion (1 token per person in 2050. See $CARROT Supply for more information.)

Figure 41: Token Supply & Demand

When TRCs and TCCs are minted, a price feed oracle using open market data (e.g. the quoted price in the liquidity pool and other public sources of price data so as to prevent manipulation) determines the value in $CARROT that will be distributed to each recycling contributor. Therefore, much like a well-functioning economy, products (TRCs and TCCs) are quoted for the value they add, while currencies ($CARROT) facilitate trade. Each is priced independently but they work together to form a stable and balanced economy.