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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):

Visual Representation

TGE Circulating Supply Composition:

Supply Release Schedule

First 12 Months

Monthly Circulating Supply Growth:

Month

Public

Private

Team

Ecosystem

Marketing

Total Circulating

% of Total Supply

0 (TGE)

30M

10M

12.5M

15M

12M

79.5M

7.95%

40M

10M

16.5M

20M

14.8M

101.3M

10.13%

60M

10M

24.4M

30M

20.5M

144.9M

14.49%

90M

10M

36.3M

45M

29M

210.3M

21.03%

120M

32.5M

48.2M

60M

37.5M

298.2M

29.82%

150M

55M

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:

Market Cap Analysis

Initial Market Capitalization

At TGE: Market_Cap=Circulating_Supply×PriceMarket_Cap = Circulating_Supply \times PriceMarket_Cap=Circulating_Supply×Price =50,000,000×$0.15=$7,500,000= 50,000,000 \times \$0.15 = \$7,500,000=50,000,000×$0.15=$7,500,000

Fully Diluted Valuation (FDV): FDV=Total_Supply×PriceFDV = Total_Supply \times PriceFDV=Total_Supply×Price =1,000,000,000×$0.15=$150,000,000= 1,000,000,000 \times \$0.15 = \$150,000,000=1,000,000,000×$0.15=$150,000,000

FDV/Market Cap Ratio: Ratio=FDVMarket_Cap=$150M$7.5M=20×Ratio = \frac{FDV}{Market_Cap} = \frac{\$150M}{\$7.5M} = 20×Ratio=Market_CapFDV=$7.5M$150M=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=New_TokensPrevious_Circulating_SupplyInflation_Rate = \frac{New_Tokens}{Previous_Circulating_Supply}Inflation_Rate=Previous_Circulating_SupplyNew_Tokens

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 %

79.5M

386M

306.5M

385.5%

386M

627M

241M

62.4%

627M

741M

114M

18.2%

741M

855M

114M

15.4%

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=−New_SupplyTotal_Supply×SensitivityPrice_Impact = -\frac{New_Supply}{Total_Supply} \times SensitivityPrice_Impact=−Total_SupplyNew_Supply×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:

Utility Demand: Trading fee discounts
Staking: Tokens locked for rewards
Liquidity Mining: Tokens locked in pools
Speculation: Investment demand
Buyback: Platform purchases

Net Effect: Net_Price_Change=Organic_Growth−Dilution_Effect+Demand_FactorsNet_Price_Change = Organic_Growth - Dilution_Effect + Demand_FactorsNet_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

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

$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=Liquidity_TokensCirculating_Supply=30M50M=60%Liquidity_Ratio = \frac{Liquidity_Tokens}{Circulating_Supply} = \frac{30M}{50M} = 60\%Liquidity_Ratio=Circulating_SupplyLiquidity_Tokens=50M30M=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

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:

Circulating supply
Locked/vested tokens
Staking rate
Daily volume
Market cap & FDV
FDV/MC ratio
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.

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

Related Sections:

Updated on: 10/03/2026

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Circulating Supply at TGE

TGE Overview

Launch Parameters

Definition of Circulating Supply

TGE Supply Breakdown

Category-by-Category Analysis

Visual Representation

Supply Release Schedule

First 12 Months

Long-Term Projection (5 Years)

Market Cap Analysis

Initial Market Capitalization

Market Cap Growth Scenarios

Supply Inflation Analysis

Monthly Inflation Rate

Annualized Inflation

Price Impact of Supply Increases

Dilution Effect

Mitigation Factors

Comparative Analysis

Exchange Token TGE Comparison

FDV/Market Cap Ratios

Liquidity Considerations

Exchange Liquidity

Trading Volume Projections

Risk Factors

Supply-Related Risks

Market Risks

Supply Management Strategy

Phase 1: Launch (Months 0-3)

Phase 2: Growth (Months 3-12)

Phase 3: Maturity (Year 2+)

Monitoring & Reporting

Key Metrics Dashboard

Monthly Reports

Conclusion