$LFYIELD Token
Last updated
Last updated
$LFYIELD is the native rewards token of the LFGrow ecosystem.
Reward tokens throughout crypto usually function as a simple way of paying users, and this creates issues with maintaining the token's value, as the token's only inherent value to holders is to then sell for profit.
The number one issue reward tokens face is devaluation, due to a lack of buying demand, and a constant inflationary tokenomics model.
To ensure the $LFYIELD token stays valuable, we employ three powerful mechanisms:
Perpetually sustainable capital injections, ecosystem-wide demand creation, and strategic supply reduction through redemption.
For a token to stay valuable, it needs to have consistent buy pressure to outweigh or match sell pressure.
The first way the protocol creates buy pressure on $LFYIELD is through capital injections from the protocol-owned-treasury. In other projects where the protocol treasury is finite, this is a very short-sighted move. However, through the Meme Coin Yield Platform being one of our treasury's primary revenue sources, profiting primarily from staking fees, we're able to inject capital to keep $LFYIELD valuable (as explained in our core thesis .)
Our second mechanism which creates consistent buy pressure on $LFYIELD is the creation of ecosystem-wide demand. Staking $LFYIELD, gains access to the following advantages:
Higher yield bonuses on $LFG.
High yield on all meme coins in the Meme Coin Yield Platform.
High yield on LFY liquidity pairs.
Lower ecosystem-wide taxes through redemption.
Combined, these capital injections, along with these advantages granted to $LFYIELD stakers, create heavy inorganic supply control (buys from the protocol itself.) It also creates organic control (buys from users who desire to own $LFYIELD.) Both will actively combat the sell pressure of all LFY tokens in circulation.
LFY Sustainability - Because $LFYield is an essential part of the LFG ecosystem, additional mechanics have been implemented to ensure its sustainability. Taxes - All $LFY earned via rewards, will be subject to 10% sell tax, however, this tax can be avoided if redeemed for LFG.
Redemption - All $LFY reward recipients (either through meme coin staking, or LP's) will have the opportunity to burn their $LFY for a percentage in $LFG. That percentage will be regulated automatically by the DIEC and vested throughout a designated period based on the percentage given. This percentage will be higher than the market exchange rate for $LFY which will incentivize against selling the $LFY token. The vesting period will be automatically determined by the DIEC.
