What is DeFi Coin?
DeFiCoins.io and its DeFi Coin protocol will allow users to trade digital currencies in a decentralized manner. This means that buyers and sellers will exchange value with other market participants - so there is no requirement to go through a centralized third party.
The DeFi Coin protocol actively promotes three functions:
• Static Rewards
• Automatic Liquidity Pools
• Manual Burning Strategy
In order to achieve its decentralized goals, the protocol is supported by a native digital token - DeFi Coin (DEFC). This token operates on the Binance Smart Chain and can be exchanged between users on a wallet-to-wallet basis.
Users are encouraged to hold their DeFi Cointokens on a long-term basis. This is because transactions are taxed at a rate of 10%. As a result, this discourages day trading – which has the undesired effect of causing increased volatility levels and wild pricing swings.
Perhaps most importantly, 5% of this figure is distributed to existing DeFi Coin token holders, which in itself, is not too dissimilar to conventional dividend payments. The other 5% is utilized to provide liquidity to decentralized exchange services.
DeFi Coin Static Rewards
A major benefit of holding DeFi Coin tokens is that users have the opportunity to earn reward via a static reward system. Before getting to the specifics of how this works, it is important to note the issues that static rewards solve.
In the vast majority of cases, early backers of a newly launched digital currency will look to sell their holdings as soon as the asset hits an exchange. Naturally, this results in downward pressure being put onto the cryptocurrency in question. At the other end of the scale, you have digital currencies like DeFi Coin that promote and reward long-term buy and hold strategies.
That is to say, by selling or exchanging DeFi Coin for another cryptocurrency, the user will incur a 10% tax. 5% of this tax will then be distributed proportionately between existing token holders. See below for a simplistic example of how static rewards work when holding DeFi Coin tokens:
• Let’s suppose that the number of DeFi Coins you are holding is the equivalent of 1% of the total supply
• Somebody sells 40,000 DeFi Coin tokens in the open marketplace
• 10% of this is taxed - so that amounts to 4,000 DeFi Coin tokens
• 50% of this - or 2,000 tokens, is then distributed for the purpose of exchange liquidity
• The remaining 50% - or 2,000 tokens, is distributed across all Defi Coin holders on a proportionate basis
• As you hold 1% of the total supply, this means that you receive 20 DeFi Coin tokens.
It goes without saying that the above example highlights that static rewards operate much the same as a conventional dividend payment. This is because you have the potential to continuously grow the number of DeFi Coin tokens that you have in your possession.
Crucially, this 5% reward distribution will take place each and every time somebody elects to buy or sell their DeFi Coin tokens.
About BitMart
BitMart Exchange is a premier global digital assets trading platform with over 5 million users worldwide and ranked among the top crypto exchanges on CoinMarketCap. BitMart currently offers 370+ trading pairs with one of the lowest trading fees in the market. To learn more about BitMart, visit their website, follow their Twitter, or join their Telegram for more updated news and promotions. Download BitMart App to trade anytime, anywhere.
About DeFi Coin
The DeFi Coin protocol is a community driven fair launched DeFi Token. Three simple functions occur during each trade: Reflection, LP Acquisition, and Burn. To learn more about DeFi Coin, please visit their website, follow their Twitter and join their Telegram.
