The more I think about @paperstrategy_ flywheel and watch it being executed - the more I like it and am confident that price will go multiples higher in mid to long term. Key components of the entire setup, how they interact with each other and how I think they will drive the price up: 1. Staking revenue, buybacks and burns 2. Increasing share and amount of $PAPER in the treasury 3. Tax on both buyers and sellers 4. Relatively low liquidity in the LP 1. Staking revenue, buybacks and burns This is absolutely crucial component of the system - amount of buybacks follows the formula 18 HYPE + 50% of staking revenues from previous day - for last few days this has ended up between $70k and $120k per day - which given that price has been fluctuating between 0.007$ and 0.012$ resulted in whooping 1%+ of supply burned daily for the last few days. Also important to note that buybacks make 10-20% of total daily volume (!!!) Given that share of $PAPER owned by @paperstrategy_ treasury has been consistently increasing - you can assume this number will go up if @papertrade_xyz volume keeps steady or increases. And even if you assume @papertrade_xyz volume goes down resulting in smaller staking revenues - % of $PAPER owned by @paperstrategy_ increasing will reduce the negative impact. I think even $50k per day in buybacks continuously would be massive. Note that both $PONS and $STONK revenues have been around $100k per day recently - and they are both (still) valued at 9 digit market cap (!!!) while $PSTR is sub $10M - based on that alone you should be thinking 5-10x from here. Finally key point I want to make in this section which is what will in my mind enable a very aggressive repricing of $PSTR at some point - the longer the price stays sub 0.01- 0.012 and we are able to burn 0.5%-1% supply per day - the more aggressive the repricing will be. The early entrants and sellers will finally run out of ammo - and majority of distributed tokes will be with long-term holders (like me) looking for a 9 digit valuation. In order to trigger that rapid repricing we just need a catalyst - could be new release of @paperstrategy_ which was hinted by @eth_elian or could be dramatic increase in $PAPER price (which is likely if even part of the volume and staking rewards can be sustained) - will cover more on that in section 2 2. Increasing share and amount of $PAPER in the treasury Now this - aside from driving increase in @paperstrategy_ 's share of staking revenue generated by @papertrade_xyz has also one additional very important benefit - if $PAPER price goes 5-10x from here - the value of $PAPER held by @paperstrategy_ treasury will also 5-10x (and even more since they acquire more $PAPER daily - depending on a day 2-4% of newly minted paper goes to @paperstrategy_ ). @paperstrategy_ treasury holds 168M $PAPER today. At current price of 0.028$ per $PAPER that is worth $4.7M. Imagine $PAPER going to $0.3 (which I think is very in coming weeks / months - especially with what @izebel_eth and team shared about their roadmap) - this will catapult treasury value beyond $50M. This will have massive impact on $PSTR mcap. Combined with buybacks and burns (decreasing supply) , $PSTR mcap of $50M could mean $PSTR price of $0.06 - $0.07. And $PSTR mcap of $100M could mean $PSTR price of $0.12 - $0.14 3. Tax on both buyers and sellers Now this is a bit double edged sword as it does prevent some people from buying the token - however what is great that because of relatively thin LP and fairly aggressive price move in both directions - there is a lot of panic and euphoria around the token (people panic selling or fomo buying). That means there is a lot of trading volume on the token - average over the last week has been around $1M - 10% of that goes into tax that funds acquisition of new $PAPER . Now this is super important part of the system as it allows the team to surpass $PAPER inflation and increase % share of total $PAPER issued (which is crucial as you read in points 1 and 2) 4. Relatively low liquidity in the LP Finally relatively low liquidity - this one is very interesting one - but to my understanding has been carefully orchestrated by design. Current LP value is $700k - $750k with 53.3M PSTR and 4.7k HYPE pooled. With buybacks making 10-20% of volume that creates incredible buying pressure on the coin that moves price aggressively to the upside. On the sell side - when price moves down aggressively - it accelerates panic selling (which generates more tax) and it also allows treasury buybacks to buy and burn more tokens at attractive price. I will do further deep dive into this part and some modelling and simulations in a separate post. Closing thoughts I strongly believe that at some point $PSTR will aggressively rerate - and the longer it takes for it to do it, the more aggressive the move will be (due to supply shock driven by point 1 above and amount of $PAPER held by @paperstrategy_ described in point 2). As usual - this post is purely educational, not financial advice, do your own research.