SafeMoon is known as a decentralized DeFi platform. Its CEO is John Karony and it started trading on March 8, 2021. SafeMoon is based on distributed ledger technology.
SafeMoon is a cryptocurrency launched on the Binance Smart Chain blockchain. It is used to support the staking and liquidity pools of the protocol. SafeMoon is one of the cryptocurrencies designed to extend Ethereum standards in the cryptocurrency ecosystem.
SafeMoon aims to derive new types of value from crypto technology and create blockchain, commerce and NFT products for increasingly better use. The SafeMoon platform plans to develop charity projects and crypto education apps along with the NFT (non-tradable token) exchange. On this platform, token holders meet with a system where they can earn SafeMoon tokens according to the number of tokens.
SafeMoon has three functions involved in each transaction: Reflection, Obtain LP and Burn.
- Reflection:The whitepaper of the project reports that SafeMoon holders are charged a transaction fee of approximately 5%, which is distributed among the holders of the coin.
- LP acquisition:The whitepaper also revealed that this second key component of the project charges transaction fees of around 5%, which will be charged to various liquidity pools on PancakeSwap and other platforms.
- Token burning: The whitepaper of the project also showed that every transaction that takes place on the mainnet is taxed at 10%. The idea is that 5% of the tax goes to reflection rewards and the other 5% to liquidity pools. Half of the 5% that goes to liquidity pools is converted into Binance Coin (BNB) to guarantee the liquidity of the SafeMoon and Binance token pair.
What are the SafeMoon Coin Advantages?
The advantages of SafeMoon Coin are as follows:
- SafeMoon users can earn passive income with 5% rewards for every transaction realized during HODL.
- Static rewards and rewards determined by trade volume encourage token trading on the platform.
- It uses the idea of static rewards based on the reward tied to the volume of the token traded.
- The reflection mechanism encourages SafeMoon holders to hold their tokens longer (HODL).
- With its automatic LP, it provides a price floor for token holders and stabilizes the protocol.
- With the manual burning strategy, price erosion caused by inflation is prevented.
- Prior to launch, all tokens in the developer wallet were burned.
