What if Someone Sells a Large Amount of Coyote
Before we get into answering that question, let’s get into the tokenomics of Coyote™. The one that you’re likely to be most interested in is the 5.5% redistribution which is rewarded back to Coyote™ holders as a reward for continuing to run with the pack. The next portion that you’re probably interested in would be our coin burn of 3% per transaction. Less supply equals more demand and more demand equals higher value! Lastly, but just as equally important is the 2.5% applied to the liquidity pool contributing to the developmental of the Coyote™ ecosystem.
Redistributions are great, but what if someone sells a large amount of Coyote™, wouldn’t that make the price go down? While all of our normal transactions have an 11% fee applied we have put a number of safeguards in place to protect your investment in Coyote™. One of the safety measures we put in place to protect the value of the coin is increasing the transaction to 35% when selling more than 5% of the previous 24-hour volume.
Due to that safety measure, the whales have two options, either they will behave like everyone else…or they’ll shout “YOLO” from the rooftops as they dump 35% back to the Coyote™ ecosystem. When that happens the 5.5% redistribution turns into a 17.5% redistribution!
There are other safeguards we’ve put in place which will be covered in a future post, “How Coyote Prevents Whales From Distorting Markets”.
Which part of the transaction are you most interested in? Leave a comment below with your thoughts.