What is SafeMoon (SAFEMOON)?
SafeMoonProtocol is a fully exposed, community-focused DeFitoken The platform is a fork of BEE with the additional functionality of RFI Economics and Auto-Liquidity Generation Protocol. Safe moon Protocol aims to solve many problems related to the cryptocurrency industry, such as farming rewards, liquidity supply, and mining rewards. The platform seeks to leverage the community within a decentralized space to solve this problem. According to the Safemoon white paper, the platform offers solutions to the following problems:
Automatic liquidity acquisition
Liquidity is significant for any trading environment. Historically, market makers (increasing liquidity and access) served buyers and sellers on traditional order book exchanges for a better user experience. Market makers reduce the overall volatility of the market due to large orders. However, liquid pools in decentralized locations have replaced traditional order books. As with market maker compensation in an order book environment, any decentralized environment requires appropriate incentives to incorporate liquidity. Without incentives for liquidity providers, the environment creates problems. These problems occur when the token pair faces permanent losses from arbitrage.
As a solution to the problem, liquidity can be adopted as an intelligent contract function using market activity from swaps and transfers. Additionally, the platform aims to capture a portion of these transfers and swaps through brilliant transfers and use the “swap and liquefy” function. Moreover, liquidity is managed through contracts, thereby relieving customers of any permanent loss situation. Large liquidity pools reduce the impact of exchange rate fluctuations against the total available supply. Therefore, as the token matures, auto-liquidity can be attributed to market stability being able to absorb considerable market activity. Smart contracts are like regular contracts. However, these agreements run as protocols on the blockchain instead of being drawn on paper.
- Token reflection
Conventional mining is both painful and expensive for users. Static reflection rewards are earned by holding tokens and provide an innovative hold-farming reward structure. This structure differs from traditional pool farming awards. The main reason behind this work is to eliminate token dependencies, including:
External website interface
Depositing funds into unverified third-party smart contracts
A transaction fee is required to claim rewards.
As a solution, the platform aims to offer a compound reward structure that does not require additional payment. This is also called token reflection with tokens without additional cost or impact. Given a fixed reflection rate of 5%, market activity directly affects the token reflection that depends on the percentage of users’ tokens compared to the overall supply. Enabled with the “ExcludeFromReward” function for individual addresses, accounts such as DApps, Hot Wallets, Exchanges, etc. can be excluded from token reflection, allowing individual holders to receive more rewards. Overall, SafeMomon aims to provide an option to allow users to participate in intelligent contract token reflection to generate tokens within a wallet.
- Reducing supply and combustion addresses
In a decentralized bright chain, contract functions can achieve token scarcity. The platform proposes a reward distribution method at Burn Address, which is publicly verifiable for all participants. The platform aims to track dwindling supplies in real time for added transparency.
Safe Moon aims to establish a baseline token burn rate for which the price depends on three factors: token volume, reflection rate, and market volume. The reward rate reflected at each holder’s wallet address is proportional to the total supply. The number of tokens in the burning address and the growing token shortage affect the platform’s calculations. These features have a synergistic effect by overestimating future burn rates. Cryptocurrency burning occurs when a portion of a token is sent to a wallet that does not have a private key. This means the token is lost forever. Tokens are usually burned to reduce availability and increase market value.
History of SAFEMOON
John Caroni is the CEO of SafeMon. Charles Caroni is VP of Operations and holds a bachelor’s degree in financial economics from Brigham Young University.
