If some token distrube 2% of each transaction to LP, means it price decrease?

Naficopa

hero member

Activity: 2002

Merit: 516

Quote from: George199 on November 14, 2021, 04:02:26 PM

Hello,
Many tokens traded in Pancakeswap and so on has transfer tax function, for example distrubute 2% of tokens from every transaction to LP.
But If they doesn´t add same value in pair currency (for example BNB), I think it means price small decrease. Is it right?

Thank you for reply.

Also, I'm not sure if I got you right, but I think you got things wrong.
I think you are confusing burning option of tokens with coins that have a fixed supply.
If a token has the option to burn, then this could make its value theoretically increase when its supply decreases.
If a coin or token doesn't have a burn option, it doesn't mean that its price is falling.

George199

newbie

Activity: 16

Merit: 0

No, this question isn´t about classic exchanges like Binance but about decentralized (DEX) like Pancakeswap. How it works? -> https://www.theancientbabylonians.com/what-is-liquidity-pool-lp-in-defi/
Binance smart tokens (BSC) can have some specific redistribution functions (tokenomics). There is for example tokenomics of Safemoon: https://www.safemoon.education/post/safemoon-tokenomics-explained

So I know that if there is less of token1 thank BNB in Liquidity pool, token1 will be more expensive. But If token1 will be added to liquidity pool, without adding BNB, ration will change, so token1 could have less price probably. So I don´t know why many tokens have distribution to liquidity pool in tokenomics.

Kavelj22

legendary

Activity: 1778

Merit: 1474

🔃EN>>AR Translator🔃

I didn't well understand your concerns but i think you are about to refer to trading fees in Binance. I hope i am right.

There always be a deducted fee for every action you take with your balance including order fees and withdraw requests and some even apply fees for deposits.

Please explain more about the situation you faced in details without providing any personal info and i think many users will be able to give a help-hand.

George199

newbie

Activity: 16

Merit: 0

Hello,
Many tokens traded in Pancakeswap and so on has transfer tax function, for example distrubute 2% of tokens from every transaction to LP.
But If they doesn´t add same value in pair currency (for example BNB), I think it means price small decrease. Is it right?

Thank you for reply.

Topic: If some token distrube 2% of each transaction to LP, means it price decrease? (Read 24 times)