The crypto industry has had its fair share of problems since it emerged to this day. Many of them have been solved, or are on the way of being solved. For example, ICO scams were largely beaten by the idea to launch projects on exchange launchpads, where the exchanges would guarantee that the projects are valid. However, some issues still persist.
For example, even valid projects can have their prices manipulated if whales get involved, buy large amounts of tokens, and cause its price to rise. The positive price movement causes a lot of other people to invest, as well, and push the price even further. Then, the whale sells the tokens they bought, causing the price to crash.
Sometimes, even the projects’ executives themselves manipulate the prices, which happened to XRP, or at least, that’s what some users accused the project of. However, one project figured out a way to stop price manipulation as well, although it had to introduce some strict rules and strong punishments for anyone who might try to do so. The project’s name is Myōbu, and it has quite an interesting approach that does not only stop oversales, but it also aims to create a positive feedback loop that will increase its popularity and value alike.
What is Myōbu and How did it Eliminate Sell-Offs?
Myōbu is a project named after the celestial foxes, associated with the Japanese god of harvest, Inari. Myōbu brings hope, fun, usefulness, rewards, cleverness, and alike, all of which are the attributes that the project aims to embody.
The way it stopped massive sell-offs consists of several steps. First of all, the project put a limit on the maximum amount users can sell by only allowing them to sell enough coins at once to make a 2.9% price impact. That means that anyone who wishes to do more harm to the project needs to engage in consecutive sales.
However, the project eliminated this possibility also through step number 2, which is the introduction of cool down periods, which increase after each sale. So, after the first sale, the trader has to wait for one hour to sell again. If they do sell again after this first hour, they must wait for 2 hours. After selling for the third time, they will have to wait for 6 hours before the next sale, and so on.
On top of that, there is a certain exit tax that needs to be paid during sales, which grows with each consecutive sale, and the money collected from this tax gets distributed to holders. On top of that, there is an additional fee that also grows with each sale, and the money from these fees is used for the project development.
So, the project has done a lot to punish anyone who might try to damage it through regular, major sales. But, it is also quite kind to those who opt to hold their tokens, by granting them rewards from the exit tax.
Creating a Positive Feedback Loop
On top of the rewards, the project also has another feature, which comes in the form of a Fox Hole Fund. This is a fund that uses the money stored within for various community events, such as contests, lotteries, and alike, all for the purpose of achieving F.U.R. — Fun, Useful and Rewarding.
The project has plenty of ideas for the fund, and some have already been realized. For example, it recently engaged in token buyback and burning, where the community got to participate, and each participant who sent at least 0.05 ETH is eligible to win 0.5 ETH rewards this Sunday, July 4th.
The project is also in talks to sponsor community members’ Twitch channels, create NFT art contests for artists, help protect endangered foxes, sponsor musicians, create a merch line, and more, all of which will serve to bring more people to the community, make the community closer and happy to be members of Myōbu, which will further increase the coin’s price, and all those who hold the token will still receive rewards, as the project will continue to tax anyone who sells.