Based on an optimal price “growth” target loosely correlated to a 45-degree line based over a given period of time, we were keen to ensure that our “self aware” token encompassed the ability to reduce sell pressure in bearish or volatile markets, and at the same time ensure that price growth never rises too sharply, as to cause potential for future price bubbles.
The STAIK token incorporates two features which enable us to do this. SPR and BPL
SPR (Sell Pressure Reducer)
SPR was designed to automatically raise the sell tax on the STAIK token during volatile or bearish periods. By gradually increasing the sell tax, holders of stake are increasingly discouraged from selling STAIK owing to the associated costs.
The SPR works by monitoring the current DEX liquidity of STAIK itself, and of both WBTC and ETH, which act as leading market indicators.
In situations where WBTC and WETH are declining against the $, this is often an indicator of general bearish conditions in the crypto market. Most of the time when Bitcoin and Ethereum are going down in price, the alts will follow. It is during these periods where investors in STAIK don’t want to be seeing large sell-offs, so in this situation STAIK will automatically increase its own sell tax.
In extreme cases, STAIK will even begin to burn some of the tokens generated from the sell tax to introduce a deflationary element to the project.
Similarly, when STAIK itself is experiencing a slow-down in growth, it is important to discourage sell-offs, so the sell tax will also gradually increase.
As markets start to recover and STAIK price growth reverts back to a general increase, the sell tax automatically lowers, making it less costly for holders to sell their STAIK.
BPL (Buy Pressure Limiter)
The BPL works opposite to the SPR. In periods of extreme growth, the buy tax on STAIK will slowly increase automatically. This is to prevent the growth of STAIK rising too quickly, leading to potentially large sell-offs. At the same time, this will create natural “entry points” for potential investors sitting on the side-lines, waiting for a good opportunity to buy in. The BPL might seem counter-intuitive for holders of STAIK, who will want the price to sky-rocket as quickly as possible, but this would prevent sustained growth, and ultimately lead to significant price crashes.
Optimal Growth
We have calculated that optimal price growth of STAIK would be around 2.5% per day. This may prove to be a frustrating level of growth for some investors who are used to investing in small caps that that are used to seeing 50% growth on their low-cap alt investments in a single day, but ultimately these projects WILL crash. They might not do it immediately, and it might not necessarily “kill” the project, but sooner or later a price crash is inevitable. This type of initial growth (“mooning”) simply means that as the early investors seek to cash in on their early investment, those last to invest will get burned…..badly.
If you are looking for slow, steady growth, where holders are discouraged from selling in bear markets, and where new investors will be forced to pay a premium during bull markets, then STAIK might just be the project you’re looking for.
Remember, all 100% of buy fees and sell fees go back to the holders, either in the form of direct reflections, or via our “Ranch” solution which is rewards for staking LP tokens or Uniswap V3 NFTs, so when people do buy OR sell STAIK, holders will benefit.
