Zoocoin Protocol, a new animal crypto chain, rewards the average token holder by implementing manual burns
3 min readZoocoin protocol is the first of its kind community-driven animal crypto farm, which has built a token rewarding system based on static rewards and taxing transactions with a 10% fee. The platform splits the fee into 2; one-half is redistributed back to existing token shareholders. The remaining half also gets split into two halves, one is exchanged for Binance Coin (BNB), and the rest is paired/burnt automatically to the liquidity pool through a Pancake Swap.
Zoocoin protocol integrates mainstream and innovative Decentralized Finance products and cutting-edge Non-Fungible Token mechanisms. Not just that, you are going to find excellent implementations across DEX, Oracle, Swap Lending, insurance and much more.
Four primary features make up the Zoocoin protocol ecosystem.
1)Zooter, a decentralized Twitter-like platform for users to like/dislike posts through burning ZOO.
2)ZSwap, an integration allowing users to swap from one token to another directly, with no need to jump to decentralized exchanges and other third-party trading platforms.
3)Zoolet, a first-of-its-kind animal crypto farm allowing users to invest in their favorite animal crypto.
4)Zoocoin (ZOO), a cryptocurrency issued through a static reward mechanism that ensures it is free from careless price fluctuations
In addition, there is ZooNFT, in which ZOO holders buy NFT blind boxes and gain rare NFT entries, and ZooPass, a NFT token that shares the dividend of Zootopia DeFi yield earnings. Actually is a passport system divided into seven levels that allows Zoocoin users to receive various value-added services based on their level.
The platform is built on top of the Binance Smart Chain and opted for manual burns over continuous burns so that the team can have more control over the circulation of the coin. According to the coin’s engineers, giving the team more control over the supply of ZooCoins will boost transparency and increase its benefits to long-term holders.
But how would manual burns benefit investors?
Advantages of Manual Burns over the Outdated Continuous Burn
Let’s take a look at the case of Joe, who, in our example, is an early adopter of Zoocoin protocol’s native token, Zoocoin. Inherently, the Zoocoin protocol should be 100% community-driven, and its reward mechanism seeks to reward its most loyal holders. Token economics specifies that rewards on the platform depend on the volume of trade. Usually, this is called the static rewards mechanism, and the dev team says they are using the mechanism to fix some inherent digital coins problems. So let’s go a step back to Joe.
Joe will receive a dividend that is calculated upon the amount of ZooCoins he owns. This dividend comes from transaction fees. Remember earlier mentioning that the platform taxes a 10% fee on all holders that decide to sell their tokens? Yes, Zoocoin aims to keep control of the price volatility by preventing selling pressure that’s bound to cause fluctuations.
Now a manual burn maintains an occasional check on the supply of coins in circulation. If the coins are limited, the demand is high, and so is the price. A loyal and long-term investor such as Joe would benefit immensely over time, as the token price is bound to rise.
How does the team aim to make the manual burn transparent?
The development team went a step further to burn all their tokens and all tokens in the development wallet to boost fairness, transparency, and a platform powered more by the community than its engineers. Besides, the platform aims to advertise the amount of Zoocoin they burn to promote transparency and decentralization further. This way, the community easily tracks down the number of tokens in circulation and makes informed decisions on their future positions.
The platform’s native token, Zoocoin, will be used as the primary deduction unit for the ecosystem’s native wallet. Other functions are repurchase transaction fees through the manual burn, asset selection through community voting, and as a unit for charge discounts.
Bottomline
The Zoocoin protocol dev team brings a lot of experience in cryptography, economics, and computer science. Armed with this knowledge, they are more than confident that their invention will eliminate some of the troubles associated with Decentralized Finance and introduce an updated rewarding mechanism. The Zoocoin team has burnt the LP tokens for permanent lock-in. There are no chances of rug pull. Zoocoin can be bought in PancakeSwap here. You can buy ZPass here
