Token Economics
Tokens are based on basic economic principles. Choose one.
Last updated
Tokens are based on basic economic principles. Choose one.
Last updated
Inflation tokens are tokens that constantly mint new token supply and distribute these to its holders, DAO Treasury.
Hex is a popular token created by Richard heart. The token has a fixed inflation rate that is distributed to all stakers proportional to their locking period. This economic theory is based on the model of Certificate of Deposits. The longer people stake the higher will be their share of the newly minted tokens, incentivising long term stakers.
Enter Yearly Inflation Rate: Total supply increase per year given out to all stakers. High inflation mens higher APR, however also increases sell pressure overtime.
Enter Bonus rate per Year: Bonus participants gain for staking their tokens longer. A high percentage bonus means that more of the newly minted tokens will be distributed to long term stakers. A bonus of 365% means that stakers that stake will receive 1% high allocation of staking yield over people that stake 1 day less.
Enter Whale Stake: Bonus participants gain for staking more than x % of tokens. Whale bonus incentives large stakers to stake their tokens. Enter 0% to skip whale bonus, 1% indicates that all stakers with 1% or more of total supply will receive the whale bonus and so on.
Whale bonus: Bonus boost all stakers that have fulfil the whale bonus requirements.
Early Unstake Fee: The fee that applies to stakers that unstake before their staking peirod has been reached. We recommend default setting of 50%. A 50% fee defines that if anybody unstakes before their unstake time has been reached will be have to pay a fee equal to 50% of their total yield they would have earned.
To learn more see
Maximum staking period: The maximum time any individual can stake their tokens for. We recommend not to go beyond 10 years.
Simple tokens that have a fixed supply, just like Bitcoin. Once token is minted, there is no way to mint additional tokens. Project owners can define total token supply sold to participants, supply for staking campaigns and supply for the DAO Treasury.
The minted supply for static token will be the only supply that ever exists on the market.
Reflection tokens (sometimes called ‘rewards’ tokens’) refer to any crypto-asset that rewards holders by adding new crypto to their wallets. Earning extra crypto is the end goal of other DeFi investment mechanisms like staking and yield farming. However, reflection tokens pay coinholders without them having to move any money, sign up to any staking pool, or even having to check their crypto wallet. Reflections are usually financed by a percentage tax on any transaction in the native token. The tax is redistributed instantly to coin holders, most often according to the size of their holding.
Aside from passive income generation advantages, reflection tokens also help to prevent large price drops. This is both because taxes discourage whales (individuals holding a large amount of a specific coin) from selling up their positions and encourage investors to hold onto tokens for greater reflection in the future. Reflection tokens keep investors loyal to a project. Reflection mechanisms employ smart contracts that automatically distribute tokens across holders’ wallets (often also a liquidity pool and/or a burning wallet).
Safemoon (SAFEMOON). Safemoon was one of the first reflection tokens in the crypto industry. The project has won over 2.5 million holders with a market cap of $2 billion. Safemoon’s smart contract charges 10% on top of any SAFEMOON transaction, with 5% distributed to investors and 5% going to Safemoon’s liquidity pool.
Collateralised token offerings are new form of offerings native only to SAFU.io inspired by DAO Makers Dynamic Coin offerings (DYCOs).
If project owner selects Collateralised offering then a portion of the raised funds is used to collateralise the new native coin.
Part of the funds raised in the offering are sent to a CTO smart contract. The smart contract holds own the collateral funds for a predefined refund date has been reached. Once reached participants can swap the native token against the collateral token as a refund. The smart contract will return the user the collateral token and burn the native token.
Number of days that the token will be collateralised by the offering funds. During this timeline no new tokens can be minted or inflated into circulation. This ensures that 100% of the token supply is collateralised.
How much of the raised funds are used to collateralise the token, the minimum is 60% and maximum is 100%. I
