How Coyote™ Prevents Whales From Distorting Markets

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Large token holders or, “whales,” can hold and dump coins, causing high levels of liquidity and unfairly handicap smaller token holders. Whales can potentially hijack unprotected tokens and create rug-pulls on tokens such as SafeMoon and Bonfire. At Coyote™, we believe that new protocols are needed to remove this risk.

Coyote has built-in mechanisms that prevent large investors from becoming overly dominant in the Coyote ecosystem. Large token holders have historically caused problems with volatility in just about every crypto asset on the market. Whales can influence staking, liquidity pools and the price of a token, particularly if one or two collaborate, or if they simply follow one another in close succession.

We’ve established caps on daily sells, hold vaults and other mechanisms to reduce volatility and market domination by a small number of token holders. Not only are we protecting token holders once live, we are also placing limits on the amount of Coyote™ tokens that any one address can acquire during the presale.

Coyote will have the potential to create limitations on the volume of transactions that an address may perform in one day. The initial launch of Coyote™ caps the amount of regular transactions any address can make to 5% of the previous 24-hour volume. It will still be possible to sell beyond the regular amount of transactions, however the transaction tax will increase from 11% to 35% if the seller exceeds the maximum sell limit. If the team detects that there are still problematic behaviors by whales, it will be possible to impose even stricter or more expensive limitations on daily sells. Whale-proofing is great for smaller holders — but also for the whales themselves, because they don’t have to worry that another whale might execute a rug pull or other price manipulation. In other words, the mechanism makes Coyote™ safe for other large investors.

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Coyote is a dual-chain DeFi coin built on the Binance Smart Chain and Ethereum blockchain. Whitepaper — https://coyoteco.in/Coyote-WhitePaper-2022.pdf

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Coyote Coin

Coyote Coin

Coyote is a dual-chain DeFi coin built on the Binance Smart Chain and Ethereum blockchain. Whitepaper — https://coyoteco.in/Coyote-WhitePaper-2022.pdf

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