SafeMoon is a DeFi protocol on the Binance Smart Chain blockchain. It was created to solve the problems faced by liquidity providers in decentralized finance protocols. The concept of “reflection” implies static rewards that mitigate the listed shortcomings.
Wallet, a decentralized exchange, and a cryptocurrency wallet are in the launch phase. Other products include a browser-based game Mooncraft and a merch store.
SAFEMOON is a BEP-20 token, the protocol’s native currency. It serves as a reward for delivering liquidity. 1,000,000,000,000,000 SAFEMOON were created in the genesis block, of which developers burned 223 trillion. The remainder is distributed to community members as part of the launch event on DxSale. The token is traded on decentralized and some centralized exchanges. It has a low value but periodically shows growth. Today you can easily swap SafeMoon to BNB.
Benefits of Static Rewards
With DeFi’s proliferation and growing popularity, the problem that has become apparent is the subjectivity in mining rewards. New investors are often quick to give up when they see other users getting more tips.
Because of this, there is now a massive acceptance of static rewards, also known as reflexivity. This scheme used in SafeMoon minimizes the problem described above. The two main components of the concept:
The size of the reward depends on the trading volume of the token. This is done to combat pressure on the asset by early investors. They sell tokens after they have made money on them. Reflexion encourages holders not to sell tokens to get higher fees. Fees are based on the total number of tokens and commissions for transactions.
SafeMoon also focuses on a token-burning strategy. Controlled combustion helps maintain fair rewards for the community. Manual burn conditions and amounts can be easily tracked. SafeMoon aims to reward those who plan to support the project over the long term.
Automatic Liquidity Pooling
- One unique component of the platform is the automatic liquidity pool. It gives SAFEMOON token holders a double benefit. The contract takes tokens from both sellers and buyers. An arbitrage-resistant penalty mechanism is present. It provides an appropriate amount of SAFEMOON as a reward to holders.
- Replenishment of the liquidity pool creates stability. It increases the total pool of tokens and maintains the price level. This concept is different from the common one where reflexion tokens are burned. The project team believes that this option only benefits in the short term because of the reduced supply.
According to the project’s technical documentation, each transaction within the protocol is taxed at 10%. Of that, 5% is distributed to token holders, and the other 5% is split in two. Half of the smart contract is sold to BNB, and half is paired with those BNB to the Pancake Swap exchange.
The SafeMoon project has been repeatedly accused of being a Ponzi scheme – a pyramid scheme. The reason was excessive volatility. Of course, volatility is characteristic of the entire crypto market. But the ups and downs of the SAFEMOON token price still stood out. That’s why many called the project a Ponzi scheme and a scam.
There is a Ponzi scheme: the profits of early investors depend on those who came later and paid more for the token. The distribution of sales commissions is also a pyramid scheme. But that doesn’t prevent traders from making money on changes in the token’s exchange rate. Look for favorable exchange conditions on the website https://alligat0r.com/custom/compare/.