Circulating Supply at TGE

The Token Generation Event (TGE) marks the official launch of the USE token and the beginning of its market circulation. Understanding the initial circulating supply and its growth trajectory is crucial for investors, traders, and the broader community to assess token economics and price dynamics.

TGE Overview

Launch Parameters

Parameter	Value
TGE Date	Q2 2025 (Target)
Total Supply	1,000,000,000 USE
Initial Circulating Supply	50,000,000 USE
Initial Circulation %	5.0%
Listing Price Target	$0.15
Initial Market Cap	$7,500,000
Fully Diluted Valuation	$150,000,000

Definition of Circulating Supply

Circulating Supply: Tokens that are freely tradable and not subject to lock-up or vesting restrictions.

Includes:

• TGE unlocks from all categories

• Immediately tradable tokens

• Tokens in active circulation

Excludes:

• Locked/vested tokens

• Team allocations (cliff period)

• Treasury reserves

• Unvested presale tokens

TGE Supply Breakdown

Category-by-Category Analysis

At TGE (Month 0):

Category	Total Allocation	TGE Unlock %	TGE Tokens	% of Circulating
Public Sale	150M	20%	30,000,000	60.0%
Private Sale	100M	10%	10,000,000	20.0%
Team & Advisors	200M	0%	0	0%
Ecosystem	250M	5%	12,500,000	25.0%
Liquidity Mining	150M	10%	15,000,000	30.0%
Marketing	80M	15%	12,000,000	24.0%
Treasury	70M	0%	0	0%
Total	1,000M	5%	50,000,000	100%

Note: Percentages in "% of Circulating" column show composition of the 50M circulating supply.

Visual Representation

TGE Circulating Supply Composition:

Public Sale (30M)      ████████████░░░░░░░░ 60%
Liquidity Mining (15M) ██████░░░░░░░░░░░░░░ 30%
Ecosystem (12.5M)      █████░░░░░░░░░░░░░░░ 25%
Marketing (12M)        ████░░░░░░░░░░░░░░░░ 24%
Private Sale (10M)     ████░░░░░░░░░░░░░░░░ 20%

Supply Release Schedule

First 12 Months

Monthly Circulating Supply Growth:

Month	Public	Private	Team	Ecosystem	LM	Marketing	Total Circulating	% of Total Supply
0 (TGE)	30M	10M	0	12.5M	15M	12M	79.5M	7.95%
1	40M	10M	0	16.5M	20M	14.8M	101.3M	10.13%
3	60M	10M	0	24.4M	30M	20.5M	144.9M	14.49%
6	90M	10M	0	36.3M	45M	29M	210.3M	21.03%
9	120M	32.5M	0	48.2M	60M	37.5M	298.2M	29.82%
12	150M	55M	0	60M	75M	46M	386M	38.6%

Key Observations:

• Month 0-1: Rapid initial increase (+27.4%)

• Month 1-6: Steady growth (+107.6%)

• Month 6-12: Continued expansion (+83.6%)

• Year 1 Total: 386M tokens (38.6% of supply)

Long-Term Projection (5 Years)

Annual Circulating Supply:

Year End	Circulating Supply	% of Total	YoY Growth	New Tokens
Year 1	386M	38.6%	-	386M
Year 2	627M	62.7%	62.4%	241M
Year 3	741M	74.1%	18.2%	114M
Year 4	855M	85.5%	15.4%	114M
Year 5	930M	93.0%	8.8%	75M

Visualization:

Year 1: ████████░░░░░░░░░░░░ 38.6%
Year 2: █████████████░░░░░░░ 62.7%
Year 3: ███████████████░░░░░ 74.1%
Year 4: █████████████████░░░ 85.5%
Year 5: ██████████████████░░ 93.0%

Market Cap Analysis

Initial Market Capitalization

At TGE: $Market\_Cap = Circulating\_Supply \times Price$ $= 50,000,000 \times \$0.15 = \$7,500,000$

Fully Diluted Valuation (FDV): $FDV = Total\_Supply \times Price$ $= 1,000,000,000 \times \$0.15 = \$150,000,000$

FDV/Market Cap Ratio: $Ratio = \frac{FDV}{Market\_Cap} = \frac{\$150M}{\$7.5M} = 20×$

Market Cap Growth Scenarios

Conservative Scenario (Price: $0.30):

Timeframe	Circulating Supply	Price	Market Cap	FDV
TGE	50M	$0.30	$15M	$300M
Month 6	210M	$0.30	$63M	$300M
Year 1	386M	$0.30	$116M	$300M
Year 2	627M	$0.30	$188M	$300M

Base Case Scenario (Price: $1.00):

Timeframe	Circulating Supply	Price	Market Cap	FDV
TGE	50M	$1.00	$50M	$1B
Month 6	210M	$1.00	$210M	$1B
Year 1	386M	$1.00	$386M	$1B
Year 2	627M	$1.00	$627M	$1B

Optimistic Scenario (Price: $5.00):

Timeframe	Circulating Supply	Price	Market Cap	FDV
TGE	50M	$5.00	$250M	$5B
Month 6	210M	$5.00	$1.05B	$5B
Year 1	386M	$5.00	$1.93B	$5B
Year 2	627M	$5.00	$3.14B	$5B

Supply Inflation Analysis

Monthly Inflation Rate

Inflation Formula: $Inflation\_Rate = \frac{New\_Tokens}{Previous\_Circulating\_Supply}$

First Year Inflation:

Period	New Tokens	Previous Supply	Inflation Rate
Month 0-1	21.8M	79.5M	27.4%
Month 1-3	43.6M	101.3M	43.0%
Month 3-6	65.4M	144.9M	45.1%
Month 6-9	87.9M	210.3M	41.8%
Month 9-12	87.8M	298.2M	29.4%

Average Monthly Inflation (Year 1): ~37%

Declining Inflation Trend:

• Year 1: 386M tokens added

• Year 2: 241M tokens added (-37.6%)

• Year 3: 114M tokens added (-52.7%)

• Year 4: 114M tokens added (0%)

• Year 5: 75M tokens added (-34.2%)

Annualized Inflation

Year-over-Year:

Year	Starting Supply	Ending Supply	Tokens Added	Inflation %
1	79.5M	386M	306.5M	385.5%
2	386M	627M	241M	62.4%
3	627M	741M	114M	18.2%
4	741M	855M	114M	15.4%
5	855M	930M	75M	8.8%

Stabilization: Inflation rate decreases significantly after Year 2.

Price Impact of Supply Increases

Dilution Effect

Theoretical Dilution Formula: $Price\_Impact = -\frac{New\_Supply}{Total\_Supply} \times Sensitivity$

Where Sensitivity typically ranges from 0.3 to 0.7

Example (Month 1):

• New Supply: 21.8M tokens

• Total Circulating: 101.3M tokens

• Supply Increase: 27.4%

• Sensitivity: 0.5

• Expected Price Impact: -13.7%

Mitigation Factors

Demand Drivers:

1. Utility Demand: Trading fee discounts

2. Staking: Tokens locked for rewards

3. Liquidity Mining: Tokens locked in pools

4. Speculation: Investment demand

5. Buyback: Platform purchases

Net Effect: $Net\_Price\_Change = Organic\_Growth - Dilution\_Effect + Demand\_Factors$

Example:

• Organic Growth: +50%

• Dilution Effect: -13.7%

• Demand Factors: +20%

• Net Price Change: +56.3%

Comparative Analysis

Exchange Token TGE Comparison

Exchange	Initial Circ. %	1-Year Circ. %	5-Year Circ. %	TGE Strategy
use.com	5.0%	38.6%	93.0%	Conservative
Binance	10.0%	50.0%	100%	Moderate
FTX*	8.0%	45.0%	95.0%	Moderate
Coinbase	N/A	N/A	N/A	Equity-based
Huobi	15.0%	60.0%	100%	Aggressive

*Historical data

use.com Advantages:

• Lower initial circulation (less sell pressure)

• Gradual unlock schedule (price stability)

• Predictable supply growth (investor confidence)

FDV/Market Cap Ratios

At TGE:

Exchange	Market Cap	FDV	Ratio	Assessment
use.com	$7.5M	$150M	20×	Reasonable
Typical Range	-	-	10-30×	Industry Standard
High Risk	-	-	>50×	Overvalued
Low Risk	-	-	<10×	Conservative

use.com Position: Within healthy range, indicating reasonable valuation.

Liquidity Considerations

Exchange Liquidity

Initial Liquidity Provision:

Source	Tokens	USD Value @ $0.15	Purpose
Ecosystem Fund	5M	$750K	DEX liquidity
Market Makers	10M	$1.5M	CEX liquidity
Liquidity Mining	15M	$2.25M	Incentivized pools
Total	30M	$4.5M	60% of circulating

Liquidity Depth: $Liquidity\_Ratio = \frac{Liquidity\_Tokens}{Circulating\_Supply} = \frac{30M}{50M} = 60\%$

Assessment: Strong initial liquidity support.

Trading Volume Projections

Expected Daily Volume:

Timeframe	Circulating Supply	Expected Daily Volume	Volume/Supply Ratio
Week 1	50M	$2M	26.7%
Month 1	101M	$5M	33.1%
Month 3	145M	$10M	46.0%
Month 6	210M	$20M	63.5%
Year 1	386M	$50M	86.5%

Healthy Range: 30-100% of circulating supply

Risk Factors

Supply-Related Risks

1. Unlock Pressure

Risk: Large unlocks create selling pressure

Mitigation:

• Gradual vesting schedules

• Staking incentives

• Utility demand

• Buyback support

Example (Month 7):

• Team cliff ends: 0 tokens (12-month cliff)

• Private sale: 7.5M tokens unlock

• Mitigation: Market maker support + staking rewards

2. Inflation Concerns

Risk: High early inflation depresses price

Mitigation:

• Conservative TGE unlock (5%)

• Decreasing inflation rate

• Strong utility demand

• Transparent communication

3. Liquidity Fragmentation

Risk: Supply spread across multiple exchanges

Mitigation:

• Concentrated initial listings

• Market maker coordination

• Liquidity mining incentives

• Cross-exchange arbitrage

Market Risks

1. Price Volatility

Expected Volatility: High in first 3 months

Factors:

• Low initial float

• Speculative trading

• Unlock events

• Market sentiment

Management:

• Market maker stabilization

• Communication strategy

• Gradual supply increase

2. Valuation Concerns

FDV/MC Ratio: 20× at TGE

Investor Concerns:

• "High FDV" narrative

• Dilution fears

• Long-term value

Response:

• Transparent unlock schedule

• Strong fundamentals

• Utility demonstration

• Regular updates

Supply Management Strategy

Phase 1: Launch (Months 0-3)

Objectives:

• Establish price discovery

• Build liquidity

• Manage volatility

• Communicate clearly

Actions:

• Market maker engagement

• Liquidity mining launch

• Regular updates

• Community building

Target Metrics:

• Daily volume: $2M-$10M

• Liquidity depth: >$1M

• Price stability: ±20% daily

Phase 2: Growth (Months 3-12)

Objectives:

• Absorb supply increases

• Grow user base

• Increase utility demand

• Maintain stability

Actions:

• Staking program expansion

• Product launches

• Partnership announcements

• Buyback initiation

Target Metrics:

• Daily volume: $10M-$50M

• Active users: 100K+

• Staking rate: 30%+

Phase 3: Maturity (Year 2+)

Objectives:

• Sustainable economics

• Reduced volatility

• Strong fundamentals

• Market leadership

Actions:

• Continued product development

• Ecosystem expansion

• Regular buybacks

• Governance activation

Target Metrics:

• Daily volume: $100M+

• Market cap: Top 100

• Staking rate: 40%+

Monitoring & Reporting

Key Metrics Dashboard

Real-Time Tracking:

1. Circulating supply

2. Locked/vested tokens

3. Staking rate

4. Daily volume

5. Market cap & FDV

6. FDV/MC ratio

7. Inflation rate

Public Access: Transparent dashboard on website

Monthly Reports

Content:

• Supply changes

• Unlock schedule

• Market metrics

• Staking statistics

• Buyback updates

• Community insights

Distribution: Email, blog, social media

Conclusion

The use.com TGE strategy employs a conservative 5% initial circulation, balancing the need for market liquidity with long-term price stability. Through gradual supply increases, strong utility demand, and systematic buybacks, we create a sustainable token economy that supports long-term value creation for all stakeholders.

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Previous: ← Buyback & Burn Mechanism Next: Treasury Management →

Related Sections:

• Tokenomics Summary

• Vesting & Unlock Schedules

• Token Utility Overview