Why PR Demand Strengthens Over Time

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1. DEX Liquidity Begins With Real Utility Demand

When PR liquidity is introduced on decentralized exchanges, it is not launching into a vacuum.

PR is already required inside the Public Respect app for:

• Withdrawals
• Participation eligibility
• Reputation mobility
• Users need PR before interacting economically with the protocol.

This creates immediate, organic demand rather than hype-driven trading.

2. Fixed Initial Distribution Creates Early Supply Discipline

The initial public allocation 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 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 DEXs

As the user base grows, this creates structural buy pressure.

Growth increases demand 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:

Supply expands slowly

Demand can grow faster than issuance

5. Built-In Retention Reduces Circulating Supply

• PR is not meant to be constantly sold.
• Users are incentivised to retain at least 1 PR for protocol participation
• PR enables future withdrawals, credibility, and system access
• Selling all PR reduces personal utility

This creates natural holding behavior, reducing circulating supply.

6. Burn Mechanics Counterbalance Inflation

• Each withdrawal mint applies a protocol-level burn.
• A portion of potential supply is permanently removed
• Burn rate can be adjusted transparently by governance
• 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 price
• PR trades freely on decentralized exchanges
• Price discovery is driven by:
• User growth
• Utility demand
• 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
• Demand is tied to participation, not narratives

This creates a stronger foundation for long-term value.

In Summary

• Early liquidity is supported by real utility
• 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
• Market pricing is organic and decentralized

PR is designed so growth creates demand faster than supply can expand.