Reflection Mechanism and Crypto: A Deep Dive

Reflection Mechanism and Crypto: A Deep Dive

The concept of the reflection mechanism was newly introduced into the cryptocurrency space a few months back. A reflection mechanism can be defined as a process in which tokens act as a self-generating mechanism for their holders. As every transaction is taxed you receive tokens automatically simply by holding the token. The reflection mechanism was developed with the hopes of transforming the concept of yield generation in the DeFi ecosystem.

 

How it works

These DeFi tokens use a static reward system, which means that every transaction made with tokens that use this mechanism is ‘taxed’. This means that a percentage is added to a liquidity pool for every transaction, and another portion is set aside for redistribution among token holders. As a result, the value of these tokens is self-generating and aims to promote a ‘hold and earn’ culture, which reduces selling pressure. The reflection mechanism is accomplished through smart contracts, which automate the token redistribution, and all those holders need to do is manage the wallet in which their tokens are stored.

 

Projects adopting reflection mechanism

Since the reflection mechanism concept was conceived about eight months ago, many new players have begun to enter DeFi, incorporating this mechanism into their offering. Most of these projects have made significant progress in the last few months, with SafeMoon being a particularly significant project. It was launched on the Binance Smart Chain (BSC) only five months ago and has quickly risen to become the third-largest token in the ecosystem by market capitalization. On their website, SafeMoon list the reflection mechanism as one of their core components, explaining their rapid adoption in cryptocurrency circles.

 

Investor concerns and community support for SafeMoon

The risks and rewards of SafeMoon’s reflective token model haven’t been lost on the larger investment community. In a recent NASDAQ article about the new cryptocurrency the author concedes that one of its attractions with the individual tokens costing so little, “you can get over a million Safemoon with just a few dollars. It also has an interesting hook of charging a fee to anyone who sells and distributing half of that fee to Safemoon holders. This is designed to benefit those who buy and hold.” Coming under more scrutiny is the way the selling fee mechanism works, with a 10% split between existing holders, and the remaining 5% allocated to the liquidity pool. The issue identified by security platform CertiK is that an owner address acquires the pool tokens – giving them control over the tokens funded by the seller fee. Despite these criticisms, there is strong support from investors in Reddit, notably a recent post from user @commecon in the SafeMoon subreddit which argues that the ‘FUD’ around SafeMoon is similar to that which surrounded Dogecoin, and concludes that, “Safemoon is the best investment I’ve ever made. I just need to keep HOLDING.” In contrast, another contributor points out the “lack of transparency and clear communication.”

These concerns surfaced recently regarding the planned launch at the end of August of a mobile iPhone and Android app; plus, the movement of a large quantity of Safemoon tokens, highlighted in a report in Reddit. In response on Thomas (‘Papa’ @papacthulu) from the Safemoon team tweeted: “The chain is obviously transparent, I’m not hiding, the contract owner address was used entirely for business purposes. At no point was a transaction made with the owner address that wasn’t approved by others.” While on the wallet app issues the main Safemoon Twitter account reassured the community that despite delays, the wallet launch was on track: “We truly have pulled together as a community in regards to the #SAFEMOONWALLET launch our beta testers are testing through the night while our Devs continue to work up a sweat! The launch is in sight.”

 

Merits of the reflection mechanism

While the reflection mechanism was designed to address issues such as selling pressure and excessive price movements, other key issues addressed by the reflection mechanism include:

● Security: because fee generation and distribution are combined into one smart contract and do not require approval from any external interface, assets are very secure.
● DeFi yield generation: the reflection mechanism automatically awards bonuses, allowing holders of reflection tokens to use their tokens for staking and other yield generation purposes.
● Fair distribution of earned tokens: because the distribution process is automated, it is based on the number of tokens held by each user at the time.
● Buyback and burn mechanism: to ensure the longevity of their tokens, some reflection tokens use the reflection mechanism to automatically conduct buybacks and burns. This causes a deflationary effect, reducing supply and increasing the value of the tokens in circulation.

 

The allocation model of reflection tokens

Reflection tokens’ allocation model differs significantly from that of other tokens in the industry due to the mechanism they employ. It works by automatically charging a tax, which is usually 10% after each transaction. This tax is then redistributed and shared among liquidity pools, marketing and development fees, and holders of reflective tokens. This is done to improve the allocation model’s transparency and to keep the respective communities informed. All wallets that receive a percentage of this tax are publicly available on the blockchain for effective tracking and accountability.

 

Reflection tokens’ advantage in a bear market

Based on the current cryptocurrency market outlook, there are indications of a bear market in the works, which would significantly impact cryptocurrency prices, with the majority of cryptocurrencies experiencing a significant decline due to a high volume of sell orders from their holders. In this context reflection token holders benefit from having a distinct advantage in a bear market. Despite implementing a self-generating income mechanism, there is still an incentive to hold despite price fluctuations, thanks to the ‘hold and earn’ mechanism and associated culture it promotes.

 

On reflection mechanism

The reflection mechanism is a relatively new concept in cryptocurrency circles, and it still requires a lot of fine-tuning before it can be widely adopted and implemented by other projects. However, in principle, it reduces panic selling to a bare minimum, which potentially could be significant for the DeFi industry. The litmus test is the performance of such tokens in the market in the medium to long term. At this juncture, such tokens appear an exciting experiment, which are certainly worth taking a closer look for your crypto asset portfolio.

 

 

 

 

Source: https://hackernoon.com/reflection-mechanism-and-crypto-a-deep-dive

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Why metaverses are becoming the new craze in the NFT space

Why metaverses are becoming the new craze in the NFT space

The growth of NFTs in the last year has been unprecedented, with new real-world applications appearing almost every minute it feels like. The response to, and transaction volume on NFTs in NFT marketplaces, has been nothing short of spectacular. NFTs have been integrated into many significant industries over the last two years, including sports, gaming, arts, and music.

NBA Topshot, the NFT marketplace for the US National Basketball Association (NBA), the world’s largest basketball league, is a striking one example.

NFTs have taken the world by storm for such a relatively new technology. Now many industry leaders in the digital space believe we may have finally found the missing piece to creating a fully functional metaverse, thanks to NFTs. But to comprehend NFT technology’s role in this concept of a functional metaverse, we must first better understand what NFTs are and their significance in a metaverse.

The Connection Between NFTs and the Metaverse

Clearly the development of a fully functional metaverse has the potential to fundamentally alter how people interact with the digital world. A collective virtual experience would reimagine the creative industry and open new doors for creators, gamers, and artists.

The metaverse would become a portal to digital experiences, potentially becoming its trillion-dollar industry. The possibilities with a metaverse are limitless, as evidenced by the gaming industry. Fortnite players entered the metaverse at last year’s virtual Travis Scott concert, which allowed 12 million people to experience a virtual concert all within a self-contained digital world.

In all this it’s worth remembering that Fortnite started off as a regular zombie game, but due to its popularity morphed into something now marked as part of the metaverse. And a lot of this was driven by player demand, as more and more people got involved in Fortnite Battle Royale, Epic the company behind Fortnite added social features such as costumes, voice chatting and dance parties.

For Epic it’s also a battle against the established tech giants, itself reflective of its court battles with Apple. Interviewed in The New York Times, Tim Sweeney, the chief executive of Epic, admitted that defining the metaverse was difficult, he said, but he knew what it was not: “The metaverse is not an App Store with a catalog of titles,” Mr. Sweeney said. “In the metaverse, you and your friends and your appearance and cosmetics can go from place to place and have different experiences while remaining connected to each other socially.” Could it be possible one day to have a tunnel from Roblox to Fortnite and other games, connecting them all in some sort of futuristic world? Mr. Sweeney said yes.

Matthew Ball, a venture capitalist who wrote a key article about the metaverse in early 2020, sees the metaverse not as a virtual world or a space, but rather “a sort of successor state to the mobile internet” – a framework for an extremely connected life. Indeed, despite the novelty factor of the ‘metaverse’ it’s a concept that, as he explains, has been decades in the making: “Since the late 1970s and early 1980s, many of those in the technology community have imagined a future state of, if not quasi-successor to, the Internet – called the ‘Metaverse’..it would revolutionize not just the digital world, but also much of the physical one, as well as all the services and platforms atop them, how they work, and what they sell.” And it’s that last point, the pivotal role of decentralized finance (DeFi) in the metaverse economy, that is most intriguing.

Because despite the frictionless use of crypto, with low fees and decentralized P2P structures, the reality is that the commercial first movers in the metaverse space from gaming have their own proprietary currencies. What makes DeFi so attractive to the metaverse community is that it can be automated, without any centralized intervention. It also means that DeFi has long term attractions, allowing game developers and players to invest time and money knowing the underlying blockchain platform won’t change without community consensus. “Today, only a tiny fraction of online users and gamers even have a crypto wallet, and almost no brands and games issue NFTs. But irrespective of multi-month dips in the blockchain/crypto/NFT economy, we see more of these groups embrace blockchain-based experiences each month. This produces a virtual cycle that drives more users to register a wallet, mint an NFT, or integrate crypto assets”, concludes Ball. The future of metaverse as an interconnected world is bound up with DeFi it seems.

Cryptocurrencies have already been successfully integrated recently into virtual worlds created by companies such as Decentraland and Sandbox. For example, users in Decentraland can purchase virtual real estate such as theme parks and monetize them using cryptocurrencies. Coca Cola plans to launch its own NFTs on the platform, including a ‘wearable’ jacket for avatars in the Decentraland metaverse. “We are excited to share our first NFTs with the metaverse where new friendships are being forged in new ways in new worlds,” said a Coca Cola’s Selman Careaga, President, Global Coca-Cola Trademark. While the involvement of global consumer brands rather than video gaming is not universally welcomed in the metaverse community, it’s also testament to its rapid growth, supported by NFTs, supported by wider societal trends from the expansion of gaming to the accelerated shift to online work and play driven by the COVID-19 pandemic.

Closing Thoughts

The development of the metaverse concept may still be in its early stages, but the example of Facebook’s backing shows it’s here to stay, as people’s activities and technologies converge online. To quote Zuckerberg: “I think that this is a persistent, synchronous environment where we can be together, which I think is probably going to resemble some kind of a hybrid between the social platforms that we see today, but an environment where you’re embodied in it.”

Clearly DeFi needs to play a key role in the development of the metaverse, to avoid two versions emerging: one dominated by the likes of Facebook, and the other built on open interoperable platforms. Together with NFTs the role of DeFi is to provide the essential infrastructure for the vision of an open metaverse which liberates us to explore our online identities in both work and play. While we do not yet know what it will look like or say when a metaverse is finally created, the key role of cryptocurrencies and NFTs to make it a reality is already apparent. With the combined involvement of tech giants, the advancement of cryptocurrencies, and the NFT sector, it appears to be a matter of when, not if, the metaverse will become mainstream.

“I am hoping to see metaverseFI going mainstream.” #anndylian

 

 

 

 

Author: Anndy Lian

Anndy Lian is a business strategist with over 15 years of experience in Asia. Anndy has worked in various industries for local, international, and publicly traded companies. His recent foray into the blockchain scene has seen him manage some of Asia’s most prominent blockchain firms. He believes that blockchain will transform traditional finance. He is currently Chairman of Big One Exchange and Chief Digital Advisor at the Mongolian Productivity Organisation.

 

Original Source: https://www.ibtimes.sg/anndy-lians-opinionwhy-metaverses-are-becoming-new-craze-nft-space-59780

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Hackernoon: Meme Tokens With Real Utility

Hackernoon: Meme Tokens With Real Utility

The cryptocurrency market can be extremely unpredictable due to its volatility rate of change, with new products and services arising from DeFi to NFTs to name but two key growth areas.

Even so, there are innovations that would be laughed off as something that could never happen even in the diverse cryptocurrency space. The unprecedented rise and rise of meme tokens in the cryptocurrency space are one such paradigm-shifting phenomenon. Meme tokens, led by DogeCoin created in 2013 as a joke version of Bitcoin, were dismissed in the cryptocurrency space as worthless tokens that were not worth holding, as they had no real utility.

However, fast forward to 2021, and meme tokens have taken over the virtual currencies space, as evidenced by the presence of the first meme token created, DogeCoin, in the top ten list of cryptocurrencies in terms of market capitalization. And when top crypto analysis company Chainalysis announced recently it would now cover Dogecoin, highlighting that on August 9, 2021, Dogecoin had its fourth-largest 30-day trading volume of all cryptocurrencies, with close to $200 billion in transfers. “Our coverage of the asset is good news for the continued global adoption of digital assets,” it concluded.

This newfound popularity of meme tokens has been heavily influenced by respected figures and celebrities such as Elon Musk, popularly referred to on social media platforms as ‘The DogeFather’ due to his constant tweeting and promoting of DogeCoin since 2019.

Another noteworthy aspect is the influencer culture, which has become a mainstay in the cryptocurrency industry. Various cryptocurrencies are being ‘shilled’ by individuals with a large social media following, and meme tokens appear to be benefiting massively from this recent wave on social media platforms.

Skeptics in the industry see meme tokens as a new “get-rich-quick” scheme with no inherent utility and advise people not to trade meme tokens. This is a widespread misconception exacerbated by the ‘rug pulls’ and ‘pump and dump’ mechanisms used by some meme token creators, which has resulted in many people losing a lot of money. This impression was no doubt exacerbated by Elon Musk’s appearance on the US comedy TV show Saturday Night Live in May when asked “what is dogecoin?”,

Musk replied, “It’s the future of currency. It’s an unstoppable financial vehicle that’s going to take over the world.” And when an SNL comic Michael Che asked, “So, it’s a hustle?”, Musk replied, “Yeah, it’s a hustle,” and laughed. Despite this Elon Musk has contacted Doge developers and is now collaborating with them to improve the platform, reduce its carbon footprint, and optimize it as a payment method. To try to correct the misconception about meme tokens, we must therefore first understand the concept of meme tokens, and then look at meme projects that have real utility and solve real problems.

 

What Exactly Are Meme Tokens?

As the name implies, meme tokens, meme coins, or cryptocurrencies are created around internet memes, an image, video, or text that is usually humorous and quickly shared across social media platforms. Meme coins are frequently regarded as coins with no real utility and are thus considered worthless by many. For example, Dogecoin, the first meme token created, was based on a popular Doge meme viral on social media. Typically, meme tokens have an eye-watering huge circulating supply – often in the quadrillions.

Meme tokens have recently become extremely popular, owing to the ease with which they can be created and the massive influencer culture that surrounds some of these meme projects.

Creators of some meme tokens have capitalized on celebrity social media activities such as tweets and Facebook posts. For example, in May 2021, Facebook CEO Mark Zuckerberg posted a picture of his pet goats on social media. As a result, a meme token called ‘Aqua Goat’ increased in value by 300% in less than a day based on Zuckerberg’s social media post.

 

Are There Meme Tokens With Real Utility?

A few days ago, I sent out a tweet asking crypto enthusiasts who follow me to tell me about meme coins that they believe have real utility. I received some very interesting feedback and took the time to investigate some of the coins mentioned to see if they truly had the utility claimed. I made some very interesting discoveries and found that contrary to popular belief there are meme coins with real utility. I’ve highlighted a few of these tokens below to emphasize the point:

 

Ninja Doge is a charity utility token on the Binance Smart Chain Network, with plans for a mobile game and NFT, all in one nifty ninja package! Like other Doge tokens its designed with a 5% reward to encourage ‘hodling’, and a 5% set aside for liquidity to ensure price stability, as well as a 2% burn to maintain its value. But what’s also built into the token mechanism is 1% for charity for local animal charities. As the team explained in its whitepaper, one of the key reasons for creating this token is the desire to raise funds for local animal charities: “We believe the funds donated to smaller organizations will have a bigger impact on the surrounding communities. $5000 or even $10,000 for a conglomerate animal charity may not do much, however donating to that ‘mom & pop’ local animal charity across your street will make a difference.”

What’s nice about the charity donation mechanism, as well as it is targeted specifically at local animal charities, is that the Ninja Doge community gets to vote on which charity to select at every 3,000 holders’ increment. With the winner being randomly drawn after all entries all received, and confirmation of the donation is shared to their community and social channels. Also, part of the Ninja Doge’s exciting plans for the is a mobile game, created by the same people that designed Fortnite. A portion of the revenue from the game will be used to benefit Ninja Doge holders, the team confirmed. The aim is to have the game ready for distribution to users by the end of August. Finally, there are plans for limited edition NFT’s that will have attributes that benefit the token holders, though no date has been set for their release yet.

 

DogeCola: Dogecola, a meme token that debuted in late July, has as the name suggests its own soft drinks brand, as well as an essential feature known as auto-boost. The DogeCola team’s plan is to have the ‘MoonTaste’ soft drink in the hands of consumers by the festive season in December. It would also be the first cryptocurrency to enter the food sector, expanding the reach of the cryptocurrency market. To help reduce plastic pollution caused by corporations like Coca-Cola, DogeCola will be launching a community-led vote, to decide which eco-charities to donate to, along with partnerships with charities worldwide.

The auto-boost function is another distinguishing feature of DogeCola. This is done to avoid the ‘pump and dump’ type mechanisms common with some meme tokens on the market. To maintain stability, DogeCola uses auto boost to repurchase and burn tokens based on transaction volume. Another noteworthy feature is the high commission on selling DogeCola tokens, which was implemented to discourage selling and encourage holders by utilizing the ‘reflection mechanism’. DogeCola is currently available on the BigONE exchange.

“It’s really exciting to be listing such a creative meme coin, and not just simply as it has real utility as a soft drink beverage, but due to its ‘reflective’ token functionality,” said BigONE Chairman Anndy Lian. “We kicked off with an outreach program to bring in more users, as we want as many people as possible in our global community to enjoy becoming a token buyer with DogeCola!” he added.

 

BabyCake: BabyCake is the first CAKE reflection token launched about 3 weeks ago. The concept is simple, hold their native token and get a reward in CAKE on every transaction. Their auto claiming feature gets you CAKE automatically in your wallet every 60 minutes too. Tokenomics are clear: 7% of every buy/sell is taken and redistributed to all holders in Cake. 3% of every transaction is added to their liquidity pool. An extra 1% fee is applied to all sales and the game-changing function. 5% of every transaction is allocated to marketing.

Their ambition to become mainstream can be seen in some of the recent plans that they have rolled out. In their roadmap, it is also clearly stated that they will be launching their very own BabyCake AR gaming app too. Monk, CEO of BabyCake also told his community that they should be expecting animations, toys, and their own merchandise as well.

 

Closing Thoughts The meme tokens industry is currently worth $38 billion and comprises just under 3% of the total crypto market cap. With the latest crop of meme tokens providing real utility and with the support of social media influencers and their engaged communities, it is not far-fetched to predict that meme tokens will be widely adopted shortly. Meme.com, for example, is a new marketplace where people can compare meme tokens and mint their own “memetic tokens”, whose worth is based on the trends or memes they represent.

Clearly, there is still a lot of work to address the remaining issues in the meme tokens industry, but I believe that as more meme tokens with real utility are created, it will only be a matter of time before these issues are resolved and the meme sector within the crypto industry grows further.

 

 

 

Author: Anndy Lian

Anndy Lian is a business strategist with over 15 years of experience in Asia. Anndy has worked in various industries for local, international, and publicly traded companies. His recent foray into the blockchain scene has seen him manage some of Asia’s most prominent blockchain firms. He believes that blockchain will transform traditional finance. He is currently Chairman of BigOne Exchange and Chief Digital Advisor at the Mongolian Productivity Organisation.

 

 

Source: https://hackernoon.com/anndys-opinion-meme-tokens-with-real-utility

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Analyzing the Role of Celebrities in NFTs Adoption and Popularization

Analyzing the Role of Celebrities in NFTs Adoption and Popularization

Amidst all events that happened this year in the cryptocurrency industry, without a doubt, the list would not be complete without making mention of Non-Fungible Tokens (NFTs). Asides from the Bull Run, Decentralized Finance (DeFi) frenzy on the Binance Smart Chain among others which was witnessed, NFTs rave was and is still very relevant.

However, celebrities had a role to play in the popularization and adoption of the technology. Just the way institutional investors that came into the Bitcoin and cryptocurrency markets played a huge role in wide adoption and likewise increase in the price of Bitcoin. Institutional investors popularized Bitcoin such that banks and individuals that once spoke against the technology have now embraced it with open arms. Celebrities have played a similar role in the adoption of NFTs by the creation and auction sales of NFTs.

What are NFTs?

NFT is an acronym for Non-Fungible Tokens which means the token is interchangeable with an equivalent. In other words, an NFT is a unique unit of data stored in a digital format with Blockchain technology and can therefore not be replicated or replaced. The irreplaceable nature of NFTs is what distinguishes them from the normal cryptos. NFTs are exclusive to an individual, unlike Bitcoin and Ethereum that can be held by a lot of people. They’re fungible tokens because 1 BTC is equivalent to 1 BTC and can be exchanged for each other.

An NFT may represent real-world objects like art, music, in-game items, and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.

Use-case of NFTs

The basic and most important use of non-fungible tokens is the storage of unique data on the blockchain. The process of storing a real asset on the Blockchain is called tokenization. Different categories of real assets can be tokenized; songs, albums, publication records, artworks, photos, and lots more.

These NFTs are tokenized with the aim of either keeping the digital format on the Blockchain or ultimately putting them up for sale. 2021 has seen the sale of different NFTs at whopping prices on NFT marketplaces such as OpenSea, Rarible, Influxo among others.

So why would anyone want to buy these NFTs?

Anyone can view the individual images—or even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download?

Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Much like the priceless nature of a Matisse or a Van Gogh, the original creation is worth more than the postcard you bought from the museum, and the same follows for NFTs and their copyrights.

Collectors value those “digital bragging rights” almost more than the item itself.

What Role Have Celebrities Played in NFTs?

NFTs have become a force to reckon with in the year 2021. The market capitalization of NFTs has exploded and witnessed parabolic growth in 2021 and celebrities have played a very important role in making that a reality. Several celebrities have tokenized their musical albums, artworks among others and auctioned them for sale, and have made good returns on these NFTs. This has in turn popularized NFTs and brought them mainstream.

Nevertheless, celebrities have also prompted other reputable companies to adopt the idea of NFTs and have set plans in motion to launch theirs. Fashion companies, media houses, and beverage drink companies among others have shown intention of creating NFTs this year. Apart from the fact that celebrities are making money from the NFTs rave, the adoption of unique digital storage is being popularized and widely adopted.

Ultimately, the popularization of NFTs by celebrities is in a way fostering the growth of blockchain technology and the cryptocurrency industry at large. An instance whereby a celebrity makes a sale on an NFT created, the news will spread far and wide and inquisitive people begin to ask questions. This could go a long way in bringing those individuals into the crypto industry.

There is a massive value and monetary potential in owning these ‘one of a kind’ NFTs, as with all art, inflation and rarity will drive its intrinsic value. Experts say that this phenomenon is ‘history in the making’ for the industry that only has one value at the point of sale when it comes to paying royalty to these masterpieces, only made possible by NFTs.

Legendary footballer, Ronaldinho who won the FIFA Player of the year award twice is said to have launched an NFT collection recently in July 2021 on NFT platform INFLUXO, which was developed by BigONE. The collection of NFTs will feature about seven NFTs and will be auctioned to fans of the legendary footballer. Taking a look at this scenario, football is one of the most popular games with a large fan base, and with the move of Ronaldinho, his fans will be interested in the auction as well as the technology behind the NFT idea which is, in turn, encouraging the growth of the industry.

What determines if a celebrity NFT is rare and significant?

The NFT has to tell a story that depicts the significance of the moment or the poetry of its being, just like Ronaldho’s Legendary footwork on the field, “Gathering everyone on the field to stop the genius, but they still can’t do it”. Owning the feeling or the genius-ness of Ronaldho is something that only a true fan can resonate with its intrinsic value. To many, this digital marketplace INFLUXO could be a way to communicate this specific feeling that couldn’t’ exist differently.

Celebrities and NFTs; making Our World a Metaverse

At the end of the NFTs wave with celebrities,  is the evolution of our world into a metaverse where the internet will become a virtual world. We’ve witnessed albums, artworks, songs, photos, and even real estate being tokenized and sold as NFTs. The NFTs auctioned and sold by celebrities are a way of connecting with their fans digitally with the sale of tokenized assets thereby making the world a metaverse.

In conclusion, the NFTs industry is still in its early stages and many innovations lie ahead for the industry. It is a very secure way of storage on the Blockchain that cannot be tampered with. The technology will soon be widely adopted and celebrities have taken the lead already.

Author:
Anndy Lian is an early blockchain adopter and experienced serial blockchain entrepreneur who is known for his work in the government sector. He is a best-selling book author “Blockchain Revolution 2030”. Anndy is the Chairman for BigONE in Asia and concurrently appointed as the Chief Digital Advisor for Mongolia.

Original Source:

https://www.securities.io/analyzing-the-role-of-celebrities-in-nfts-adoption-and-popularization/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Changing the Crypto Landscape: A New Era With ‘Reflections’

Changing the Crypto Landscape: A New Era With ‘Reflections’

First and foremost, I’d like to discuss the concept of reflection in the context of cryptocurrencies, before looking at the centralised exchanges (CEXs) and how they’re going to have to adapt to accept reflection tokens as they become more common. Furthermore, I will discuss the challenges that CEXs have in onboarding reflective tokens, the solutions that have been developed, and how reflective tokens have the potential to change the way cryptocurrency is used throughout the world. In addition, I will talk about SafeMoon, which was the first project to employ reflective tokenomics; and finally, I will review Tiki Token, which is the first BNB redistribution auto-claimed token.

The Reflections Concept in Cryptocurrency

Yield farming, staking, and liquidity mining have all swept the market in recent months, due to the significant growth the DeFi ecosystem has experienced. With investors generating interest on their tokens by simply ‘locking’ them as deposits for certain periods of time. While in theory this is appealing, these techniques have one disadvantage: irrevocable loss of the asset. Even if you earn interest on your crypto assets, if the value of the underlying token changes dramatically, the value of your tokens will rise far less than if you simply retained them. As a result, we’ve seen widespread acceptance of reflective tokenomics, often known simply as reflection, a distinct idea that aims to alleviate the difficulties associated with farming rewards. The reflection concept is volume-dependent. This mechanism alleviates the negative sell pressure on the token caused by early holders liquidating their holdings. The reflection mechanism also incentivizes holders to retain their tokens in order to earn larger returns that are proportional to the holder’s token holdings. The reflection system actually doubles the profit for holders that keep their tokens the longest.

Reflection works by charging a penalty tax (usually in percentages) to each transaction and distributing the fee to all token holders according to the percentage of assets they are holding. Holders do not need to stake or wait for the fee to be delivered. Fees are awarded by smart contract and are in most cases immediately reflected in the holder’s balance as tokens, or more recently as BNB as we will discover a bit later in this paper, when we look at the Tiki Token. There is no action required at your end other than to keep the token in a wallet that you control.

Real Decentralisation

The majority of DeFi business models need users to stake or deposit their tokens in a contract in order to receive a yield. In addition to generating yields from transaction fees, reflective token holders can make use of their tokens in third-party lending, yield farming, and other smart contract related activities, allowing them to earn even greater yields. A new set of techniques is provided by the reflection smart contract capabilities to enable staking contracts to simply determine the fees received by each holder over any length of time, even when money is pooled together. This is a significant advancement because it allows for direct staking of tokens, as well as double yield generation.

Major Innovations in Reflection Tokenomics

New innovative features have continued to spring up daily with this new tokenomics. Let’s examine a few of them here; the first serves a dual purpose for holders by mopping up tokens from both buyers and sellers, and adding them to the liquidity pool, to establish a stable price floor for the token. Secondly, the penalty function, can be used as an arbitrage-resistant mechanism to ensure that the token’s volume remains stable as an incentive for holders. In principle, the additional liquidity pool provides stability by adding the ‘tax’ to the token’s total liquidity, therefore raising the token’s overall liquidity and sustaining its price floor. Lastly, the burn function, which serves to create scarcity resulting in a decrease in token supply.

CEXs Involvement To Accept Reflective Tokens

Reflective tokens like Tiki Token and SafeMoon are the two main tokens I will be looking at in detail much later. The concept underpinning reflection in cryptocurrency is as building blocks for new and existing crypto projects around the globe. Reflections are a component of the ‘tax’ that we pay for using the token. This ‘tax’ is referred to as its tokenomics, a certain percentage of the activities that goes on in the token (buy, sell, or transfer) is dedicated to these tokenomics. For example, SafeMoon and Tiki Token charge a 10% and 15% fee respectively; in SafeMoon, half of it is allocated to liquidity, while the remainder is allocated to reflections. Whereas in Tiki Token, 10% is redistributed and 5% goes to the liquidity pool. The percentage going to holders is shared equally between all holders according to their stake in the token. If you own 2% of the token for example, you will receive 2% of the amount redistributed to holders. The burn wallet which contains the most, receives the most reflections and will gradually expand in size.

This is how it technically works. However, reflective tokens have exploded in popularity and are currently available on a growing number of exchanges (with more to come), such as SafeMoon. These exchanges are increasingly interested in these tokens, driven by the growing desire from token holders to make these tokens simpler to purchase on more centralised exchanges, such as Binance, Bitfinex, and others. Developers will have a key decision to make, either increase the simplicity of purchasing these tokens (by adding additional exchanges) or lose the race entirely. It appears they have decided on increasing the number of exchanges and spreading these tokens to a larger number of individuals. Was it the best decision? In my opinion, yes.

Pain Points for CEXs to Onboard Reflective Tokens and Their Solutions

Decentralized finance (DeFi) is a blockchain-based financial infrastructure that has lately attracted a lot of interest. The concept typically refers to an open, permissionless, and highly interoperable protocol based on public smart contract platforms, such as the Ethereum, Tron or the Binance Smart Chain. Smart contract based tokens are the champions of reflective tokenomics and as a result, a transaction does not need a third party or an intermediary to be executed. This has made it possible for users to trade one kind of token for another without the need for an intermediary; while other users who stake their tokens in liquidity pools earn a portion of the transaction rewards. DeFi that is anchored on smart contracts has brought about innovations like atomic swaps, autonomous liquidity pools, flash loans, zero-knowledge proofs and other numerous innovations demonstrating this ecosystem’s enormous potential. However, for CEXs to onboard this new tokenomics, and avoid the teething problem some CEX’s have with SafeMoon, they will have to solve the following onboarding challenges:

  1. Centralization (intermediary)
  2. Autonomous liquidity pools
  3. Atomic swaps
  4. Static accumulation

For CEXs to evolve to accepting reflection tokens, it is imperative that they establish all the possible ways to onboard reflection tokenomics onto their systems. However, solutions are being found, such as SafeMoon being listed on a CEXs. They can keep track of all the exchanges, and make the fees appear to users on entrance to, and exit from the CEXs; or they can follow Bitmart’s example by accumulating rewards due to ‘HODLers’ and pay them at a set time of the month.

How Reflection Can Change How Crypto Work Worldwide

The strong case to be made in favour of reflective tokens is the key problem it solves for DeFi, the tokenomics concept, and its frequently extraordinarily high token supply that are mostly quadrillion in number; plus the reflection token dynamics, which has the advantage of preventing whales from simply exploiting DeFi projects with low token supply. It also attempts to do this in part by preventing early players from dumping their tokens at the start of the token’s price discovery period. While there are problems associated with DeFi smart contracts such as market risk and price risk, risk associated with trust, security vulnerability, and economic risk associated with its design. However, reflection tokenomics is suited to addressing these issues and mitigating the associated dangers. Consider how reflective tokens mitigates each of the risks I’ve outlined above:

Price and market risk: there are inherent dangers of crypto currency trading as in any open market. No one can guarantee a certain yield or can remove this danger.

Risk associated with trust: there are no monies available to the community that may be mishandled. There may be no need for initial coin offering or pre-sale, and no crowdfunding. There are no treasuries or banks.

Security vulnerability: fee generation and distribution are integrated at the centre of the smart contract. Everything is written in the code and accessible and readable by everyone. Nothing’s hidden, everything is transparent.

Economic risk associated with design: earning yield through network fees is a proven technique of generating revenue.

However, if cryptocurrency continues to experience the surge it has seen in last decade, particularly over the past twelve months characterised by the bull run, it’s de rigueur for major players like the CEXs to move in the direction of tokenomics protocols which are designed and implemented in order to discourage the sale of tokens and encourage ‘hodling’. This will encourage traders to rethink their decisions before selling the assets, and it will provide an additional benefit to existing asset holders. This technique seeks to prevent the pump and dump we have seen so far in the crypto market, that can result in significant price fluctuations and possible market collapse in the future.

SafeMoon Was the First Reflection Token That Introduced This Tokenomics

By offering reflections, SafeMoon recognises and compensates long-term holders. Traders who sell, purchase, or transfer tokens will face a 10% penalty tax on their transactions. The remaining 5% of this tax is subsequently divided between holders as follows:

  1. All holders get tokens redistributed according to their holdings.
  2. The burn address is a holder: it gets 41% of the 5% reflections, resulting in a 2.055% burn.
  3. The remaining 2.95% is distributed proportionately to all investors based on their current holdings.

Five per cent goes to the Pancake Swap for liquidity pools. So ideally, 5% of the total is allocation goes to reflection rewards, while 5% is allocated to liquidity pools. Half of the 5% that is delivered to liquidity pools is converted into BNB in order to maintain the liquidity of the SafeMoon and BNB pairs. A portion of the transaction fees and a portion of the penalty transaction fees is distributed to the current token holders. SafeMoon is composed of three fundamental components:

1. The reflection: a fee is imposed on SafeMoon transactions at this point, and the fee is subsequently distributed among token holders.

2. The second component is where a fee will be paid on transactions that is distributed to various liquidity pools on platforms such as SushiSwap, PancakeSwap and a host of others.

3. The third component is a token burn that occurs at the conclusion of each transaction.

SafeMoon is built on the Binance Smart Chain, which employs proof-of-authority as its consensus mechanism to achieve its goal of decentralization.

Tiki Token: the First BNB Redistribution Auto-Claim Token

Tiki Token ($TIKI), the largest BNB reflection token and the only one that enables auto-claim, has emerged as a result of the reflecting tokenomic principles. Maintaining a positive balance of $TIKI tokens in your wallet is all that is required to earn BNB. This is part of the next generation of a Binance Smart Chain yield-generating contracts. Instead of receiving tokens as compensation, you will receive BNB instead. The token contract is based on a static incentive structure in which 15% of each transaction is divided into two parts: the first is allocated to the token contract, and the second is allocated to the blockchain. Around 10% of BNB is redistributed to holders, with the remaining 5% utilised to expand the liquidity pool exchange’s capacity. The Tiki Token contract utilises a static reward system in which 15% of each transaction is split into two parts:

  • Ten per cent of BNB is redeemed by holders.
  • Five per cent is used to fuel the growth of the liquidity pool exchange.

The contract keeps track of all token holders by storing them in an array and tracks the array indexing for the sake of processing. Each transaction handles a specific number of users, which varies depending on the transaction’s size. According to the dividend-paying token standard, all BNB contract profits will be divided evenly among token holders if the token follows the rules of the standard. The contract examines the balance of a user’s withdrawable dividends as they are processed and, if it exceeds the minimum level for auto-claims, either automatically claims those dividends for BNB or automatically purchases the users’ tokens. This system is completely automated, and there are no minimal gas taxes proportionate to the amount transmitted, as there are with other systems. The number of holders processed via each transaction is dynamic and is determined by the amount of the transaction. According to their place in the queue, holders will receive dividends from the pool of investors. It is therefore a fair method that is completely automated.

Other Redistribution Models

Traditional redistribution is a position advocated by SafeMoon. The system encouraged token holders to retain their tokens in order to reap the benefits of transactional dividends (buys and sells). The percentage of tokens distributed is determined by the contract, the current token balance, and the total number of holders. In a nutshell, you will instantly receive additional tokens.

With BNB a transaction fee is applied to each buy/sell order, which is popularised by HODL and GhostFace. Tokens are then converted into BNB and placed into a pool in real time (just like how liquidity pools work). Holders can then submit a manual claim for the BNB they have earned over a specified time period. Their ability to collect BNB is related to their token ownership and the size of the current pool.

Conclusion

Many projects have tried to copy the success and features of Tiki Token since it was released as the first-ever auto-claim BNB on the Binance Smart Chain ecosystem. But while many of these forks have attempted to duplicate the project, most have failed to survive. In comparison Tiki Token continues to grow and develop new features, maintains a clear roadmap, and has a vibrant community of developers and users. Tiki Token has clearly blazed the trail and gone on to become a market leader in the BNB auto-claim redistributed concept in the crypto space. A few of the other successful projects include Baby BNB, SafeHaven, and MoonMiner.

With many different crypto plays coming into the market such as reflective tokens it’s worth considering all the options for your crypto assets. For those experienced investors who have already keen participants in the crypto ecosystem, you will find the new reflective concepts worth a closer look. For the newcomers who have recently joined the space, the best approach at the outset is to sit back, watch and learn from videos and supportive communities.

Author

Anndy Lian is an early blockchain adopter and experienced serial blockchain entrepreneur who is known for his work in the government sector. He is the bestselling author of ‘Blockchain Revolution 2030’. Anndy is the Chairman for BigONE in Asia, and the Chief Digital Advisor for Mongolia.

Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. He also played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and is also as an Advisory Board Member of Hyundai DAC Technology.

Source:
https://thelosangelestribune.com/2021/08/04/changing-the-crypto-landscape-a-new-era-with-reflections/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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