What Is the Impact of a Large, Sudden Bond Issuance on the Native Token’s Market Price?

A large, sudden bond issuance increases the potential future circulating supply of the native token, which can exert downward pressure on the market price, especially if the bond is offered at a deep discount. It can be perceived as an aggressive dilution event.

Protocols must manage the issuance rate carefully to balance treasury growth with market stability and investor confidence.