Trainer Chad is set to launch the first elastic supply token, Ditto-Money, on the Binance Smart Chain (BSC) in Q4 of 2020
Trainer Chad Announces Ditto-Money
Ditto-Money is going to be the first elastic supply project on the Binance Smart Chain (BSC). It behaves much like Ampleforth ($AMPL), a deflationary token on the Ethereum network. While it is similar, Ditto-Money’s token distribution is designed to be more inclusive; when coupled with the BSC’s cheap tx fees and its speed, it makes Ditto-Money more attractive for users.
Elastic Supply Token?
The token supply will have the ability to rearrange its entire cell structure according to the current price while maintaining users share of the market cap. This means that unlike Bitcoin, which has a limited supply of 21 million and unlike Ethereum with an unlimited supply, Ditto-Money will have neither.
Huh? A Rebase?
If the price is below $1 – the supply will decrease, also known as a negative rebase.
If the price is above $1 – the supply will increase, a positive rebase.
So although the initial supply will be 1.750.000 tokens, this will not be the maximum (or minimum) total supply. The rebase will affect your wallet’s coins as supply changes; the supply rebalances equally to every owner/wallet.
Positive rebase → you have more tokens in your wallet.
Negative rebase → you have fewer tokens in your wallet.
I know you are already thinking, why would I want to hold this token if negative rebases remove tokens from my wallet? The key thing to understand here is that rebases affect everybody.
Yes, elastic supply tokenomics are somewhat confusing. But, keep in mind the target price and the rebase mechanics, and it makes more sense.
DITTO Token Distribution?
There will be a public sale or IFO held in Q4 of 2020; this will either be on PancakeSwap AMM or Streetswap AMM.
Allocation for the coins will be 70/30%
- 70% allocated for the community
- 30% Ecosystem allocation: Provides initial liquidity, LP incentive programs, giveaways, and bounties etc.
The public sale price per token will be set at $0.90, below the target price of $1.
Steps After Successful Launch
- Full community governance via snapshot
- Trustless oracles using TWAP (Time Weighted Average Price) price feeds
- Dashboard → Will show the current ditto price, supply, and market cap.
It will also feature a button where EVERYBODY can trigger the next rebase
- LP incentive program → Provide liquidity on Pancake or Street Swap and stake LP tokens for more Ditto
The Ditto-Money team is trying to build an innovative project, and they are aware that any good project is nothing without a great community. Building a community is essential for De-Fi projects, so Ditto-Money is creating incentives for users to be involved in the project.
Positive Rebases and Market Cap: The Beauty of Elastic tokens
So how can we make money with Ditto-Money elastic token?
A few scenarios that will make you understand it a little bit more:
“Let’s apply the concept of supply and demand.
Price target 1$ and 1 rebase per day.Scenario A:
Demand > Supply
Price is above target → positive rebase → supply increases
More supply with same/constant demand → price will drop → price will eventually reach target
Scenario B:
Demand < Supply
Price is below target → negative rebase → supply decreases
Less supply with same/constant demand → price will increase → price will eventually reach targetApplies to both scenarios: if the price target is not met, another rebase is required.
Scenario C: Demand > Supply Price is above target → positive re-base → supply increases Demand still outweighs additional supply → price will remain above price target [THIS IS WHAT WE WANT]
Vice versa = the scenario that causes sleepless nights.”
Closing Thoughts
The Ditto-Money team is committed to their project. Although anonymous: the team has been pro-active on their Telegram and Twitter, provided information via their medium page, and held an ama (ask me anything) session on the BSC De-Fi Telegram channel.
As Guru Maharishi Degen once said: “Nothing bonds you together more than a joint deep dive.”
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
Source : bsc.news
