Why PR Demand Strengthens Over Time

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1. DEX Liquidity Begins With Real Utility Demand

When the Public Respect token (PR) liquidity is introduced on decentralized exchanges, it does not launch into a vacuum.

PR is already required inside the Public Respect app for:

- Withdrawals

- Participation eligibility

- Reputation mobility

Users need PR before economically interacting with the protocol. This creates immediate, organic utility demand rather than hype-driven trading.

2. Fixed Initial Distribution Creates Early Supply Discipline

The initial public allocation of the Public Respect token is capped (e.g., 30,000,000 PR).

- No infinite presale

- No silent extensions

- No sudden unlocks

Once this allocation is fully distributed, no more PR is available via direct sale. New participants must obtain PR from the open market or earn it through their reputation. This naturally shifts the system from supply-led to demand-led pricing.

3. New Users Must Buy From the Market

After the initial allocation is exhausted, new users cannot buy PR from the protocol. They must:

- Earn it slowly through reputation, or

- Acquire it from existing holders via decentralized exchanges (DEXs)

As the user base grows, this creates structural buy pressure. Growth increases demand for the Public Respect token without increasing guaranteed supply.

4. Reputation → PR Is Not Instant or Free

PR minting via withdrawals is intentionally constrained:

- Requires real reputation accumulation

- Requires manual verification

- Requires on-chain authorization

- Includes burn mechanics

This prevents mass, sudden inflation and ensures that supply expands slowly while demand can grow faster than issuance.

5. Built-In Retention Reduces Circulating Supply

PR is not meant to be constantly sold. Users are incentivized to retain at least 1 PR for protocol participation. PR enables future withdrawals, credibility, and system access. Selling all PR reduces personal utility, creating natural holding behavior that reduces circulating supply.

6. Burn Mechanics Counterbalance Inflation

Each withdrawal mint applies a protocol-level burn, where a portion of potential supply is permanently removed. The burn rate can be adjusted transparently by governance, ensuring that long-term holders benefit from reduced dilution. Burns ensure that even as PR is minted, net supply pressure remains controlled.

7. Market Price Is Set Externally, Not by the Protocol

Once liquidity exists, the protocol does not control the price of the Public Respect token. PR trades freely on decentralized exchanges, and price discovery is driven by user growth, utility demand, and available circulating supply. This separation increases trust and prevents artificial price management.

8. PR Is Earned First, Speculated Second

Unlike typical tokens, PR begins as a functional reputation output. Financial value emerges after utility is established, with demand tied to participation rather than narratives. This creates a stronger foundation for long-term value.

In Summary

Early liquidity is supported by real utility demand. Initial supply is capped and transparent. New users must buy from the market after sell-out. Minting is slow, verified, and partially burned. Retention mechanics reduce sell pressure, and market pricing is organic and decentralized. The Public Respect token is designed so growth creates demand faster than supply can expand.