The Impact of DOLO on DOLO’s Circulating Supply
One of the key factors shaping DOLO’s long-term value lies in the oDOLO mechanism. To obtain oDOLO, users must purchase and lock DOLO, thereby directly reducing the token’s circulating supply. This creates a proportional relationship between oDOLO adoption rates and the decline in available DOLO on the market.
For example, if oDOLO adoption reaches 10% of the total supply,
then 10% of DOLO will be locked, reducing circulation accordingly.
As adoption rises to 30% or 50%, scarcity in the market intensifies, contributing to stronger buy-side pressure.
Conversely, when adoption is low, the impact on circulating supply remains limited, and price effects are weaker.
This mechanism fosters a positive feedback loop: the more DOLO is locked in exchange for DOLO (to access rewards or governance rights), the less supply remains on the market, reinforcing DOLO’s value. It is an intelligent design that sustains long-term attractiveness, incentivizes committed investors, and drives sustainable growth across the Dolomite ecosystem.