>>Counterintuitively, developing a working Y-Coin network may actually decrease YCN’s value, because it would increase YCN’s usage. This is because, in order to access network utility, Y-Coin users need to spend their YCN. This, in turn, increases YCN’s token velocity, which puts negative pressure on YCN’s price.
This is clearly wrong. Value comes from demand for the currency, which increases when there are non-speculative sources of demand, like having an amount of that currency on hand for use in payments.
Demand for the currency can also increase absent non-speculative sources of demand.
That's the problem we're highlighting. We feel that many of the dev teams today are more focused on increasing the demand by chasing speculation instead of chasing utility. By changing how the dev team makes money, you focus the dev team on chasing actual utility instead of chasing the more short term goals that can pump coin price.
This is clearly wrong. Value comes from demand for the currency, which increases when there are non-speculative sources of demand, like having an amount of that currency on hand for use in payments.