The utility Moeing Chain will bring to Bitcoin Cash is amazing just by itself. But it’s incredible to think about the effect Moeing Chain will have on BCH supply. The existence and usage of Moeing Chain will require a lot of locked-up BCH.

Remember how Moeing Chain won’t have it’s own new token, but will use MBCH (BCH moved to the Moeing sidechain) as its native token and to pay gas fees? Think about all the usage Moeing Chain could possibly get due to the intense demand for smart contracts and DeFi that’s causing all the high fees on other blockchains. Think about all the use cases that would be possible on Moeing Chain due to the incredible gas limit of 1 billion and the low fees that would facilitate. 

Now think about how much BCH will need to be locked up on the Bitcoin Cash blockchain and transferred over as MBCH on the Moeing Chain. We’re talking about A LOT of BCH, all taken out of the available supply.

Half of the gas fees on Moeing Chain will be paid to the Moeing validators. What about the other half, you ask? The other half of the gas fees will be burned. You read that right. Every single transaction and smart contract executed on Moeing Chain will permanently remove some amount of MBCH (and thus also BCH) from circulation.

Think of the ramifications of this fact. Even if Moeing Chain reaches a point where it is no longer growing and its usage is basically static, it would still require a constant infusion of BCH (turned into MBCH) for Moeing users to use for gas fees. This will put deflationary pressure on Bitcoin Cash.

Besides its use as a token to pay for gas fees, MBCH will also be the native token of Moeing Chain, just like how ETH is the native token for Ethereum. ETH has its uses outside of its utility as the gas token. It can be staked for different purposes, it can be used as a settlement token for contracts, and it can be used for many other things besides. Think of all the ETH on Ethereum being used for things other than gas fees on Ethereum. If MBCH has even a fraction of that utility on Moeing Chain, we should expect a great deal of BCH to be locked-up and used as MBCH, diminishing the available supply of BCH.

Moeing validators will need to stake MBCH as collateral. If any validator misbehaves while carrying out its duty, that collateral will be slashed as punishment. So that’s one other thing that will take BCH out of the available supply in the market.

Remember that it’s expected that a future hard fork of Moeing Chain will have BCH stakers voting for Moeing validators? At some point it will surely be possible for any average Bitcoin Cash user to be able to stake their BCH in pools to vote for profit-sharing Moeing Chain validators and earn gas fees. When these earning tools are available to anyone, that will be a huge Moeing-focused use of BCH that will diminish the available supply significantly. 

With Moeing Chain’s massive capacity and all the ways it will result in taking BCH out of the available supply and all the deflationary pressure on Bitcoin Cash, what do you think the result will be? How will Bitcoin Cash be affected? I think you know what happens to price when supply gets low. And it’s only a matter of time. Get ready for liftoff.