Launch Procedures: Pro’s & Con’s
Introduction
The purpose of this article will be to explain various intricacies surrounding the launch of $BUSDY Token. We will cover the initial launch procedure and the pre-launch blacklist mechanism, along with the burn count and how that scales in respect to reward percentages and the liquidity ratio.
The Launch, Blacklist Mechanism, & The Burn
To start, $BUSDY token was a pure stealth launch. There were no airdrops, the team bought with everyone else. Most importantly, everyone that bought before the contract was distributed was blacklisted. 24 unique wallet addresses were blacklisted, holding a total of 14.38% of the total supply. Further, those wallets have also been exempted from receiving BUSD rewards. This effectively burns the 14.38% of tokens they collectively hold.
After launch we used the marketing wallet to do buybacks. We understood where $BUSDY was going and knew buybacks would accumulate more tokens at a lower cap opposed to a higher one. Of the tokens bought back, 35.22 million, or, 3.52% were burned. The rest are being used to pair and add liquidity tokens (9.66 million $BUSDY tokens at the time of publication).
How Does This Scale?
Due to the launch procedure, as well as some post-launch tactics, the big question is, how do these metrics scale in consideration of the nature of $BUSDY Token? From the actual percentage of rewards to the liquidity ratio, the supply allocation that is no longer circulating makes a significant impact. Now that 179 million tokens (17.9% of the supply) are out of circulation and exempt from rewards, we will discuss how that translates in respect to reward distribution and the liquidity ratio.
Reward Distribution
Considering the number of tokens out of circulation, the actual percentage of BUSD rewards the contract distributes to eligible holders is more than 15%. Our calculations have our quantitative rewards percentage at approximately 18%. However, we can only advertise what is made visible within the contract, which is 15% BUSD rewards.
Liquidity Ratio
Like the reward distribution ratio, liquidity is also impacted. 17.9% of the supply is no longer in circulation. The platforms formulating what we have in liquidity do not take those 179 million tokens into consideration. When calculating liquidity, our findings show that the actual liquidity pool is approximately 20% more than the liquidity portrayed on other sources.
Pros
· 17.9% of the supply holds a floor
· Tokens on standby for liquidity
· Higher percentage of rewards
Cons
· Liquidity ratio showing lower than it is relative to circulating supply
· Wallet distribution not compensating for locked wallets
