As a Circles currency, gCRC is subject to demurrage, a mechanism that gradually reduces the value of holdings over time. This is a core property of CRC and is designed to encourage circulation rather than long-term accumulation.
Key Takeaway
All CRC currencies, including gCRC, are subject to demurrage.
Most users interact with a wrapped static version of gCRC that maintains a fixed token balance on their account.
Eligible users can generate up to 24 gCRC per day.
For many users, ongoing gCRC generation outweighs the effects of demurrage, resulting in continued net growth of their holdings.
Why my gCRC Balance does not change?
In most applications, users interact with the wrapped static version of gCRC rather than the underlying demurrage-bearing asset. The wrapped version is a standard ERC-20 token with a fixed balance, meaning the number of tokens displayed in your wallet does not decrease over time. This approach is required for compatibility with various on-chain applications and primitives, including systems that rely on fixed token balances.
What happens when gCRC is priced at €0.01?
When the value of gCRC is effectively maintained at €0.01, the effects of both demurrage and inflation become less visible from a user perspective. However, the underlying economic model still applies.
Can my Effective Growth still be positive?
Eligible users can generate up to 24 gCRC per day. As long as the amount of gCRC you generate exceeds the impact of demurrage on your holdings, your overall balance can continue to grow over time.
In practical terms, this means that many users experience a net positive outcome despite demurrage, at least until their holdings reach a level where the effects of demurrage begin to offset newly generated gCRC.