TangleV1
A token is more attractive to buyers if it has more holders and lots of trading activity. We will make a complex system that will incentivize holding and trading activity in a handful of ways using a series of something I invented to distribute rewards.
Imagine we have 4 special reward distributing machines. As each machine gives rewards, it gives less and less over time, meaning we can “inject” these machines with an initial reward amount and it will distribute those rewards sustainably over time. The machines can receive “injections” of rewards from any source.
Reward Machine 1; Buying and Selling: One machine is basically a
“negative tax” that pays people to buy and sell. This incentivises market activity for our token and makes it appear more attractive. There is a tax for buying and selling and that tax is “injected” into reward machines 2, 3, and 4.
Reward Machine 2; Distributors: One machine pays people to send tokens to those who have never received tokens before. This incentivises the holder count for our token, as people will increase the holder count for us in order to be paid by reward machine 2. More holders makes a token more attractive. There is a tax for transferring to and from one wallet to another and that tax is “injected” into reward machines 1, 3, and 4.
Reward Machine 3; Soft Holders: One machine creates token “reflections” by taking its rewards and distributing it to all token holders when any token activity occurs.This incentivizes people to hold our token, also increasing the holder count. This will be a smaller reward since it requires little to no effort to receive. A portion of the token reflection will be taxed (if 100 tokens were to be reflected, 1 will be taxed and only 99 will be reflected) and this tax is “injected” into reward machines 1, 2, and 4.
Reward Machine 4; Hard Holders: One machine is a staking rewards system, which rewards people for locking their tokens and making them untradable. This incentivizes holding of a token and guarantees that tokens can’t be sold. This increases the token’s holder count and makes the token more stable, and more attractive. A portion of the staking rewards will be taxed and this tax is “injected” into reward machines 1, 2, and 3.
A very small tax is applied to all token activities and sent to the “Gamemaker”, which is the dev wallet. This makes sure that we get paid and have incentives to improve the token and its community.
There is one last but very important piece: the Rulemaker. This is a voting system that accepts votes in tokens. Voters can spend their tokens to vote on changes to how the taxes are distributed to the different reward machines. For instance, a voter can vote by spending tokens to make reward machine 4 receive a larger portion of taxes. Voters can also change the taxed amount for various activities, such as voting to decrease the tax on buying and selling.
