BurnPay creates a rising price floor with reward
Welcome to the future of reward tokens! BurnPay is the innovative solution you've been searching for. Our groundbreaking deflationary model allows tokens to generate rewards without sacrificing liquidity, reducing pool value, or adding fees. CZUSD is generated through burns, increasing the floor price of the token and the minimum value of the liquidity pool. This locked liquidity is then used to back new CZUSD, which can be used to purchase rewards without ever selling the token. The unique combination of rewarding users while still maintaining deflationary pressure makes BurnPay an exceptional investment opportunity. Tokens launched with FairTribe can customize reward distribution in a variety of ways such as NFT lotteries or auto-reward pools. Don't settle for the status quo. Join the future of rewards with BurnPay!
BurnPay can be customized to purchase any token or be distributed to any address or smart contract. Currently, Burnpay has been used for (1) NFT lottery, where burnpay buys NFTs and sends them to random holders (2) AutoRewardPool, where burnpay sends a reward coin to holders and (3) Team wallet for building new products and marketing. Also, it can be used for a combination of these plus traditional taxes. Generally, burnpay is preferred to taxes because the burning creates constant deflationary pressure while the rewards incentivize volume.
Unlike a standard tax, Burnpay allows a token to pay rewards with CZUSD instead of the token. This is because burns increase the floor price of the token and thus the minimum value of the token's LP. This LP is locked by CZodiac and is used as an asset to back new CZUSD. This CZUSD can then be used to purchase rewards without ever selling the fair tribe token. For example, imagine a token ABC. ABC token launches at $1 with 100% of 10,000 supply in liquidity with 10,000 CZUSD. Since 100% of the ABC supply is in liquidity, it is never possible for there to be less than 10,000 CZUSD in the liquidity. Now, lets say there is a 10% burn and traders trade the coin for some time until there is now only 5000 supply of ABC token. Now, consider the AMM forumla I=X*Y where I is an Invariant that does not change, X would be ABC token, and Y would be CZUSD token. We know that initially, I = 10,000 ABC * 10,000 CZUSD = 100000000. Now lets take the new supply of ABC after the burns of 5000. So using I = X*Y again, 100000000 = 5000 ABC * X CZUSD and solve for amount of CZUSD that is the minumum. X = 100000000 / 5000 = 20,000 CZUSD. Since initially there was 10,000 CZUSD locked, and now there is 20,000 CZUSD locked, it means there is 10,000 CZUSD that is available to mint to purchase rewards for the project and its developers without risking CZUSD depeg as it is fully backed even if every single ABC token is sold.
Last modified 3mo ago