Recently, the PROVE project has garnered widespread attention, but many people may have misunderstandings about it. Through an in-depth analysis of its tokenomics model, we find that this project is much more complex than a simple Airdrop.

Currently, the circulating supply of PROVE is approximately 195 million, accounting for only 19.5% of the maximum supply of 1 billion. It is worth noting that a large amount of tokens held by the team and investors are gradually being unlocked, which may bring significant inflationary pressure in the future. Although the project team has provided staking rewards to encourage users to lock their tokens, it remains to be seen whether this measure is sufficient to stabilize the token price.

According to the forecast data from CoinMarketCap, approximately 30% of the tokens belong to the team and investors, and are expected to be unlocked within 2-4 years. Currently, 6.8 million PROVE have been staked, indicating that the market is testing the waters. However, if the incentives are insufficient, the selling pressure from the unlocking may outweigh the buying pressure introduced by staking.

By comparing the total locked value ( TVL ) and the growth of the proof quantity, we can see that the balance between the growth of PROVE usage and the release pressure of tokens is quite delicate. In the coming quarters, even if usage doubles, if the unlocking speed is too fast, it may be difficult for the token price to keep up.

Therefore, when evaluating the PROVE project, one should not only focus on the natural scarcity of the tokens, but also need to analyze key factors such as the staking annual yield (APR), lock-up terms, and unlocking rhythm. These factors are crucial for the long-term development of the project.

It is worth noting that short-term hype and long-term price performance often do not align, which is a trap that many underlying projects easily overlook. For investors and analysts, it is crucial to have a comprehensive understanding of the project's economic model and long-term development strategy, rather than being misled by short-term market enthusiasm.