The problem

The problem with most projects today
The problem that has been created is with the buy tax. Let say Susan wants to buy X coin. She is intrigued that X coin will give her 12% rewards in BNB on all buys and sells. She is also hoping she can 10x her holdings. She takes the risk and swaps 3 BNB’s for X token, pays the tax, and is holding. She is starting to see some money come in, 10$ here, 10$ there. She starts to notice something in the chart activity. Every few minutes there is a big red sell being posted, it is the same token amount every time, and it’s a rather sizeable amount. She asks around in TG and finds out that is the contract selling for her rewards. “Hm” she thinks “Every time the coin starts to pump, these sells every few minutes keep hurting it!” Although the few dollars in rewards keep coming in, the chart loses steam, the volume dies down, and the coin starts to dump. Susan sells for a loss, and collects her 86$ in rewards.
 As great as rewards are, most people don’t understand it actually hurts the coin! If 15% of all buys are rewarded in BNB, the contract actually has to sell 15% of all buys. The contract can’t just collect BNB out of thin air, it has to make a transaction. To reward a holder, the contract has to have the BNB taken from it, hence a sell. Adding constant selling pressure onto the tokens chart. We have to remember, people join tokens because of green charts. Reward tokens are only beneficial with high volume, if there’s no green chart, there will be no volume, no volume means no rewards.
The Numbers
Let’s say in X token there are 10 buyers and 5 sellers. Each of the 10 buyers purchases 1,000$ each. Each of the 5 sellers sells 1,000$ each. 
Buyers: 10,000$ - Sellers: 5,000$ 
This is a good ratio for a green chart, is it not? On a normal chart yes. But let’s take a look at a chart with a 15% rewards buy tax 
Buyers: 10,000$ x 15% tax = 1,500. (Remember the 15% tax is turned into a sell, so the sell increases) 
Sellers: 5,000$ + 1500$ buy tax = 6500$ 
After tax chart 
Buyers: 10,000$ 
Sellers: 6,500$ 
Look how bad we just hurt our chart! From just 15%! Now imagine tokens with higher than 15%, throw in your marketing tax, development tax, and any type of anti-dump tax and you can see how ugly this can get. Remember the goal is a green chart! No matter how fancy your website is or not, how pretty your graphics look or how full your TG is, the only thing that matters is a green chart, anything that hurts a green chart needs to be fixed!

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The solution = our tokenomics

Last modified 6mo ago

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