SafeMoon aims to implement a burn strategy that is beneficial to long-term participants.
#Safe moon crypto price manual
The conditions and amount of manual burning can be advertised and tracked. Burns are controlled by the team and promoted based on achievements, helping to maintain the rewards and information of the community. However, in the early days, continuous burns on any protocol are good, which means that burns cannot be limited or controlled in any way. Manual burns are sometimes important but sometimes don’t. Second, the reflection mechanism encourages holders to stick to their tokens in order to obtain higher rebates, which are based on the percentage of execution and depend on the total tokens held by the owner. This mechanism aims to alleviate some downward pressure on the tokens caused by early adopters selling tokens after the crazy high APY in agriculture. First, the reward amount depends on the number of tokens traded.
#Safe moon crypto price series
Why is it a static reward? Static rewards solve a series of problems. That’s why we’re seeing the mass adoption of static rewards, also known as reflection, a separate concept that tries to remove the trouble caused by agricultural rewards. However, almost always the token suffers from an inevitable valuation bubble, followed by a bubble burst and an imminent price crash. We’ve all been there and seeing those shiny 6-digit numbers can be pretty damn tempting to jump in. With the explosion of DeFi, we are seeing too many new cryptocurrency prospectors being sucked into a high APY LP farming trap, feeling hopeless as they are pushed out by the earlier buyers with higher staking rewards. Safemoon’s Safety Monthly ProtocolĪ common misconception of static rewards, LP acquisition, manual burns, and heavy APY averages is the subjectivity of impermanent losses that bring LPs (liquidity providers) into farming reward generators. In addition, the total number of SAFEMOON burned will be displayed on the website, which further increases the transparency of identifying the current circulating supply at any given point in time.Īs of September 23, 2021, Safemoon’s market cap was $856,476,898 compared to Bitcoin’s market cap of $823,203,662,065. SafeMoon aims to implement a burn strategy that is beneficial to those involved in the long term. Manual burn conditions and amounts can be advertised and tracked. The token burn is controlled by the team and promoted based on achievements, helping to keep the community rewarded and informed.
However, in the early days, continuous burn on either protocol was good, meaning that burn could not be limited or controlled in any way. Sometimes burn matters, but sometimes doesn’t. The burn will be carried out by the relevant team according to the situation. Token burn: A small portion of the transaction fee in each transaction will be moved to the Safemoon burn address for burning. It is believed that for these reasons, this model and protocol will triumph over outdated reflection tokens. All of this is to alleviate some of the hassles we are seeing with current DeFi reflex tokens. The goal is to prevent a bigger drop when big holders decide to sell their tokens later in the game, which prevents price fluctuations as much as it would without the automatic LP feature. With the addition of SAFEMOON token LP, price stability reflects this feature, providing holders with a solid price floor and cushion. This is different from the burn function of other reflection tokens, which in the short term only facilitates the authorization of supply reduction. In theory, the added LP creates stability from the provided LP by adding a tax to the token’s overall liquidity, thereby increasing the token’s overall LP and supporting the token’s price floor. Second, the penalty is an anti-arbitrage mechanism that guarantees trading volume as a reward for holders. First, the contract takes sellers’ and buyers’ tokens and adds them to the LP, creating a solid price floor.
It has a function that acts as a two-fold beneficial system for holders.
But the 5% fee is split 50/50, half of which is automatically converted to BNB (Binance Coin) to support the Safemoon/BNB trading pair. Liquidity fund pool: Part of the handling fee in each transaction is used for the fund pool and other platforms, and 5% of the handling fee is automatically exchanged for LP to provide liquidity.
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