Today, I want to introduce to you the Socket Coin — A Deflationary Farming Coin.
This ideal still under discussion. Not the finalized version.
What is Socket Coin?
This coin will use a Deflationary Farming Mechanism with a fair launch. The fixed maximum total supply will be 3,000 (This number is not finalized but just used in this article for discussion purposes). No more tokens can be minted. Socket will have a X% Fee on transfers(buy & sell on Uniswap), which means on every time there is a transfer, there is a tax of X%. This fee will be distributed to all Socket stakers, which makes farming without inflation possible.
The transfer fee is still under discussion but there are two potential mechanisms:
- First option: Fixed transfer fee, 1% for example.
- Second option: We add a flexible transfer fee (feasibility still being researched). It will adjust the transfer fee according to current transfer volumes. Example: High transfer fee with high transfer volumes and low transfer fee with low transfer volumes. This will encourage people to transfer when volume is low to make sure the profit of stakers. When there is a pump, people will not mind the higher fee.
Liquidity Generation Events
We will support ETH and SFI for Socket Coin Liquidity generation events, after that event, two pairs will be added on Uniswap:
- SFI-Socket Trading Pair
- ETH-Socket Trading Pair
For example if ETH:SFI is 1:5 when we add the liquidity on Uniswap. And in the LGE, we received 300 ETH and 3,000 SFI, then the initial pool will have:
- SFI-Socket Pool: 3,000 SFI and 2,000 Socket will be added
- ETH-Socket Pool: 300 ETH and 1,000 Socket will be added
LGE attendees will be receive LP tokens. But you can’t directly remove liquidity on Uniswap to get underlying ETH and SOCKET using LP token. To farm Socket, everyone will stake these LP tokens in our farming pool. (Mechanism to let people exchange LP should be discussed and researched)
Both LP pools will share a portion of the transfer tax fee. The weight of each pool is still under discussion.
The price floor can be easily calculated:
💬 Welcome to join our community !