Gulden (NLG) has been on the rise lately after the Gulden Advisory Board (GAB) announced a reduction of the max supply with an upcoming update. This change, combined with a couple of other adjustments including halving events, caused a major surge in price. The reason behind this is because Gulden is getting more scarce in the near future and people seem to notice the potential.
Since the start of the Gulden project in 2014, the maximum supply was predetermined at 1680 million Gulden. At this very moment there are approximately 541 million Gulden in circulation. That amount is only 33% of the Guldens which are yet to be minted. This is about to change. The maximum supply will be reduced to 750 million Gulden in an upcoming update. That is a reduction of more than 55%!
In about 80 years there will be less than 210 million Gulden still to be minted, immediately increasing the scarcity level of available Gulden today. With the upcoming update, 73% of the maximum amount of Guldens will already be in circulation by August this year. In the year 2025 this will be around 86% and by 2029 already more than 93% will be in circulation. The remaining 7% will only appear on the markets very slowly due to halving the block rewards, which will start from 2025 and on. From 2029 forth it will take 71 years before that last quantity will become available to the markets.
Short-term block reward reduction
The block rewards will be reduced by approximately 25%. This has a direct positive effect on the annual inflation of Gulden. The price pressure on the markets is decreasing because the network rewards less Gulden on a daily basis to all parties involved (miners, witness, development). If the demand for Gulden remains the same and the supply of available Guldens will soon be reduced by 25%, then in theory the price will gradually increase by 25% from this day forth.
Gulden Halving Events
Every 4 years there will be a halving event of the block rewards. This means that 50% less Guldens can come into circulation every 4 years. The positive effect of this concept has been proven itself over the years, just take a look at the Bitcoin price surge after every halving event. By implementing these halving periods into the Gulden code, the “The Dutch Bitcoin” nickname for Gulden suddenly starts to feel well placed.
What effect can these changes mean for the price and sentiment?
The combination of these adjustments can result in much more appreciation and interest in the Gulden project. A rising price of a cryptocurrency is simply the best marketing tool available. A project that increases in value attracts much more attention and involvement from people from around the world than a project that doesn’t. The Gulden price has risen by more than 100% since the news was announced on April the 13th.
There are many more developments planned that could massively increase Gulden’s reach. The unique NFT application that will be developed, which will run on the Gulden blockchain, as well as the marketplace for this are two perfect examples. Witness Sync is another recent development, which is currently already in the testing phase. This development will result in much faster synchronization of the Gulden wallets/apps and thus enhance user experience.
Where can I buy Gulden?
On Gulden.com you can find an overview where you can buy and trade Gulden.