CLIFF Uses Deflationary Mechanism to Boost Token Price Regularly
April 02 2022 - 9:38AM
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Dogecoin started as a joke but ended up attracting billions of US
dollars and the interest of Elon Musk himself. The cryptocurrency
with the Shiba Inu dog as its logo has become an inspiration for
many other crypto projects. The most recent example is Cliff,
although it hasn’t been designed as a purposeful parody. On the
contrary, Cliff, which also has a dog as its symbol, is seeking to
help investors secure sizable returns by implementing a
deflationary model. What Is Cliff and How Does It Work? Cliff is
the first token with a true burn function that can directly and
instantly boost the price per coin as a result of burning its
circulating supply. The burning mechanism makes sure that Cliff
keeps eliminating the excess liquidity on a regular basis. Every
time it does so, the event pushes the price of each token up by a
certain percentage. Besides this, the token’s value also increases
as Cliff has exposure to yield-bearing assets with the goal to
provide value to token holders. Thus, Cliff is a token seeking to
act as a hedge fund and grow continually thanks to two main
mechanisms: burning a percentage of the circulating supply and
investing in yield-bearing assets. Here is how the burn function
works: Every trade on Uniswap or other DEX comes with a liquidity
fee. Currently, the tax is set at 5% for buys, and 8% for sells but
it’s subject to change based on the market conditions. After a
certain threshold, the smart contract releases fees accrued and
injects it into the liquidity (Initial LP tokens have been burned
forever). When the burn function is triggered (it can occur
manually when the team decides or automatically according to the
schedule), the contract unpegs a percentage of the circulating
supply and sends it to the burn address. Basically, the process is
similar to stock buybacks, in which companies purchase their own
stock on secondary markets to reduce the circulating share supply
available to the public. As a result, each token instantly
increases in value after the burn. When it comes to investing,
Cliff is getting exposure to various assets that may grow in value
over time. Besides the liquidity pool tax, every trade comes with a
6% tax on buys, and 7% on sells which is used for marketing
campaigns as well as yield-generating investments. As of today,
Cliff is invested in stablecoins used for staking, LAND assets, and
other non-fungible tokens (NFTs). Eventually, the generated wealth
will be distributed back to the ecosystem members. Cliff Features
Cliff token relies on a hyper-deflationary model to encourage a
never-ending bullish trend. Here are the token’s main features that
you should know about: Predetermined automatic true burns – one of
its unique features is the code that is programmed to unpeg a small
percentage of tokens from the pool and burn it on a regular basis,
creating a higher price floor over time. Manual burns when
liquidity is oversaturated – the manual burn is used by the Cliff
team to unpeg the excess liquidity, thus pushing the token price
higher immediately after the burn. Stable liquidity pool – unlike
other liquidity pools, Cliff holders are not required to stake
their tokens. Instead, every trade incurs a tax that goes to the
liquidity pool address to make sure Cliff becomes less volatile
over time. Anti whale – During the launch phase, the maximum amount
a wallet could hold was .1% of the total supply, ensuring a
well-distributed supply across the holders. Marketing incentives –
a marketing tax is applicable on each buy and sell to ensure the
team has enough funds for the marketing campaigns as well as to
invest and donate to charities. Security – the security of the
Cliff token is based on the Ethereum architecture itself. On top of
that, the smart contract has been audited by CERTIK, which is one
of the most recognized platforms monitoring and auditing blockchain
and decentralized finance (DeFi) projects. The code is programmed
so that the initial burned liquidity can never be pulled, while any
new liquidity tokens generated will go straight to a dead address.
Cliff as a Gateway to RED The Cliff community has the opportunity
to get exposure to another great token that will be added to the
ecosystem soon. Known as RED, it will act as a governance and
yield-bearing asset. RED will be a valuable asset for Cliff
investors, and the only way to accrue it is by staking Cliff. RED
holders will be able to submit ideas and vote on investments
proposed by the team. RED will also be the token to accrue yield
from the invested assets. Thus, the ecosystem will be fueled by two
tokens seeking to provide real value. Image: Pixabay
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