Bitcoin and other crypto currencies are supposed to be a hedge against inflation. But the way many crypto coins operate is inflationary. There is a rapid rise in the number not just of new crypto coins but also in the number of those coins that already exist through mining and other activities that allow new coins to be created.
Moreover, most DeFi farms follow this approach. To break this mold, the team behind the Baby Moon Floki (BMFloki) token decided to take a different path by setting up mechanisms that automatically decrease the numbers of tokens in circulation. By reducing supply while demand is increasing, the basic laws of economics determine that the price will rise.
The mechanisms work as follows: First, by keeping BMFloki tokens in a wallet, each holder receives a reward of 2% of all transactions. Part of this commission is constantly burned, which means that the number of coins will continually decrease, even though a higher number are in circulation.
Furthermore, the AutoBoost Protocol is an automatic redemption and burning system. AutoBoost will buy back variable amounts each time a $FLOKI token sale occurs. This is a unique feature that is more powerful than the standard buyback system. This system has a positive effect on the dynamics of the token, as it’s aimed at supporting the price during sales.
There are many meme tokens in existence that have no value and are largely based on hype and branding. But they do not have the automatic management mechanisms that back BMFloki. Both constantly reducing the number of BMFloki tokens in existence on the one hand and the incentive mechanisms for new users on the other creates a system that will support the value of the BMFloki token.
Of the total 12% fee that the project takes from its holders, 6% goes to the buyback/liquidity pool, 2% goes to the BMFloki rewards program, and 4% goes to marketing and development. Furthermore, BMFlokiSwap is the official decentralized exchange (DEX) of the community. It gives holders the ability to swap any BEP20 token for another one independently among each other. It’s powered by PancakeSwap, the safest and most trusted DEX in the world.
Giving away a Tesla
If users are an indication of success, then BMFloki has certainly shown that its project has a strong foundation. There are currently over 40,000 holders of BMFloki and the goal is to reach 100,000 holders within the next six months.
The foundation on which all ongoing BMFloki community development efforts will be built is the BMFloki Swap, which will soon add additional features and functionality exclusive to FLOKI holders. These include a BMFloki NFT, CEX listings and a Tesla giveaway, when the goal of 100,000 holders is reached.
BMFloki has been created by a team of enthusiasts, inspired by the possibilities of blockchain technologies and working in the field of cryptocurrencies since 2017. But at the same time, they saw that there could be a better way to set up a new token that was backed by mechanisms that support value, as opposed to trying to inflate the token by flooding the market with new tokens and age-old hype.
Appeared first on Coindesk, 03/22/22