This is something that Khal is obviously excited about.  He has been talking about it for weeks and today it came to life.

The Polycub website was updated to allow the [staking](https://leofinance.io/@leoglossary/leoglossary-staking) of xPOLYCUB into vexPOLYCUB.  This locks it up for 2 years from this date, proving a [return](https://leofinance.io/@leoglossary/leoglossary-return-on-investment-roi) of 20% APR in addition to the "[price](https://leofinance.io/@leoglossary/leoglossary-price) go up" feature of xPOLYCUB.

It trully is an innovative addition.

For this reason, I moved my stash over, making me a true POLYCUB [HODLer](https://leofinance.io/@leoglossary/leoglossary-hodl).

Why did I do this?  

Perhaps it is time to revisit some of the Polycub basics.

![image.png](https://images.hive.blog/DQmNzemtEMqeNw5Wd7Rdg8ZMySowAtfCZQsEKzhWG2mVzDs/image.png)

# The Treasury Is Going To Start Buying

For those who are not aware, there is a Treasury called the [Protocol](https://leofinance.io/@leoglossary/leoglossary-protocol).  This has been amassed asset value for the last few months.  Much of this came from the [transactions](https://leofinance.io/@leoglossary/leoglossary-transaction) related to the bridges, moving [Hive](https://leofinance.io/@crypto-guides/what-is-hive-crypto-hive) and [HBD](https://leofinance.io/@crypto-guides/what-are-hive-backed-dollars-hbd) (along with LEO/SPS) over to the Polgon [blockchain](https://leofinance.io/@leoglossary/blockchain).  There was also [arbitrage](https://leofinance.io/@leoglossary/leoglossary-arbitrage) opportunities that the protocol took advantage of.  

Why this is important is because it is the mechanism from which buy pressure will come.  It is the Treasury that is going to buy POLYCUB from the open [market](https://leofinance.io/@leoglossary/leoglossary-market) to distribute and meet the APR.  Keep in mind, the inflation is dwindling as there is a [token](https://leofinance.io/@leoglossary/leoglossary-token) halving every month.  We are presently at .25 POLYCUB per block.

From [the announcement](https://leofinance.io/@leofinance/introducing-polycub-v2-or-vexpolycub-governance-ui-pip2-multi-token-bridge-and-buybacks) we got today, last month there was over $4,000 in [money](https://leofinance.io/@leoglossary/leoglossary-money) from the bridge transactions alone.   This month is set to exceed it.

The idea is that the Treasury will keep increasing its ability to buy as the amount of new POLYCUB created diminishes.  To give you an idea, the next 3 [halvings](https://leofinance.io/@leoglossary/leoglossary-halving) see the token per block as such:

* .125
* .0625
* .03125

By November the level will be so low we will have seen most of the POLYCUB in circulation.  Think of this in line with what [Bitcoin](https://leofinance.io/@leoglossary/leoglossary-bitcoin) does except instead of every 4 years it is happening monthly.

# vexPOLYCUB Locking A Lot Up

As this moment, there is around 64,500 xPOLYCUB that was moved to vexPOLYCUB.  With a ratio of 23, that means we have about 1.48M POLYCUB that is locked up for the next two years.  Out of a float of under 7 million, that is a significant percentage already removed.

So what happens when tokens are taking out of circulation and the float becomes tight?  Naturally, [volatility](https://leofinance.io/@leoglossary/leoglossary-volatility) increases.  This is horrific on the [sell](https://leofinance.io/@leoglossary/leoglossary-sell) side as it will collapse prices.  However, the reverse is also true.  When there is [buying](https://leofinance.io/@leoglossary/leoglossary-buy) pressure, the market price can jump.

Treasury anyone?  

Are we starting to see how this single concept works and how powerful it is?  Keep in mind, this is just one piece to the puzzle.  There are other features in the works which will assist in bringing value to the platform.

Time locked [assets](https://leofinance.io/@leoglossary/leoglossary-asset) is something that really has not been utilized within [cryptocurrency](https://leofinance.io/@leoglossary/cryptocurrency).  Obviously, with the recent events, it is logical why many are fearful.  As of this moment, confidence in projects is low.

That said, for me, Leofinance is one of those projects to ride to the top of the mountain, or plummet to the bottom of the sea.  No getting off this ride before the outcome is reached.

Ride or Die as they like to say.

Nevertheless, the potential with locked asset is incredible.  It is a great way to enhance the scarcity of the token while also allowing functionality on the platform.  We have to remember that all pricing is in USD, so the Treasury will be purchasing what it has.  How much POLYCUB that amounts to will vary.

Even if the price crashes, the benefit is more POLYCUB will be bought with the USD denomination and put into the xPC and vexPC vaults.

This will only create a feedback loop of scarcity for the native token.

Polycub is one of those platforms that I believe in taking a long term view with.  Down the road, it seems like this will be of benefit to those who are involved.

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