With the right catitude, anything is pawsible 😼
The Problem with reflection tokens:The first problem reflection tokens have all have the same inherent problem in that they all collapse when new money in dries up just like most Ponzi schemes.
usually this is how it goes:
- new user inflow slows down
- causes volume to drop
- because volume drops less reflections are made and thus becomes less exciting to buy hence causes volume to drop even more
at this point the reflection token is in a price freefall and interest diminishes until it does out.
The second issue reflection tokens face is the high taxes that stop trade on DEXs as soon as they add pairs on CEXs, look at BabyDoge as an example, no hate on them, but out of the $3.5 million in volume today only $36 was done on DEXs, so they only collected reflections tax on $36 worth of trade! (THATS NOTHING! especially when you work out that 10% tax is just $3.6 divided by baby doges 1.6 million hodlers!)
Our Solution:our novel idea is to make part of the reflections go to funding a treasury, said treasury will invest in relatively safe DeFi yields, the ROI from this investment will be used by the treasury to wash trade FatCat on 2 DEXs.
why 2 DEXs you ask?
well im glad you asked, the treasury will buy on DEX A and sell on DEX B, this will cause a price difference, now this being crypto and there being loads of arbitrage bots out there these bots will create more volume trading the price back to having no difference, so for the ROI the treasury makes we get 2x bang for our buck in wash trading.
why do we want wash trading? well this being a reflection token the more trade there is the more reflections are created and the more tokens are reflected back to the treasury and also Hodlers aka users.
this system will ensure a ever rising volume floor that fatcat can always fall back on.
also another fun fact is we burnt 5% of the supply and that gets reflections just like the rest of our users do, so the treasury will always keep rising and the supply will keep shrinking hence the value per token mathematically should keep rising.
I believe I have come up with the ultimate hodl token.
I hope you understand the vision and I hope you will join me on this journey.
please read the white paper for a more in-depth description of all mechanics (its not too long)
(image links to twitter image, if you don't want to click this just see our twitter for todays report tweet.)