StarBound Tokenomics 101
Welcome Travelers!
To merge our long term plans into a realistic flight trajectory, the development team at StarBound has programmed it’s token using Ethereum Smart Contracts to regulate transactional behavior. You don’t have to be a rocket science to get to space, but it’s important to understand the value of investing into StarBound!
First and foremost, StarBound consists of a small dedicated team with big goals, focused on building a fun aspirational community from all around the world. As children, we remember looking up to the night sky and being enamored with the awe and sense of freedom. This is how astronauts are born. This is how we reach for the stars.
A Brief Summary of our Launch
Being StarBound, we thought it would be a fantastic idea to launch on May 4th, 2021 to celebrate the connection with a certain popular space themed franchise (May the 4th be with you!). We paired StarBound tokens with ETH on Uniswap shortly before their V3 upgrade and our first day was met with some changes to the transaction behavior that rolled into V2. As we skyrocketed upwards, achieving an massive %135,000 increase in value for StarBound in under 20 hours, we were met with an influx of malicious attacks set out to defame our project and cause a panic amongst our new investors with false accusations (fud campaign). This, coupled with confusion over Uniswap changes, led to a series of panic sell offs that gave many a false impression of what had occurred. We take this moment to explain in transparency what had transpired as Day 1 was certainly a wild ride for our team. Our core members continue to prove we are committed to StarBound success and have yet to sell any of our StarBound tokens, all of which were bought post launch to remain as fair as possible. We also create a free claimable NFT on Rarible for our early investors. Please take the time to review our website, www.starbound.space, to learn of what’s in store for our future.
Tokenomics: The Rocket Science
It’s time to dive into the mechanics of the StarBound to bring clarity of our inner workings. StarBound’s tokenomics produce a more secure investment token, and shouldn’t be viewed or utilized as a “quick flip” asset.
The max supply of StarBound is 3,333,333,333 tokens. At launch, one third of the initial supply was paired with ETH and locked on team finance for 1 year. Another third was sent to our Ion Thrusters contract were is was burnt on Day 2. The remaining third was locked during our Solidity Finance audit with team.finance for 30 days to be used in the future for staking rewards and contests and give our community confidence.
Every transaction is accompanied with an amount removed and allocated towards core components of the token. This includes 7% for automatic liquidity generation which is stored in the contract. After a threshold has been met, half of the tokens are swapped and paired with ETH on Uniswap. 5% is reflected back to all current StarBound holders as a form of passive staking, a gasless way to return interest to wallets based on market activity. 1% of each transfer is destroyed forever (burned) creating a deflationary supply meaning the market cap value is continuously squeezed into a smaller concentration of tokens. There is also 1% which is allocated directly towards the growth of StarBound as marketing and development (and based on our success, charity as well!)
Decentralized Finance is a promising landscape for projects to emerge on. Unfortunately, investing is plagued with several common problems StarBound sets out to address: front running bots and large holders dumping their investments.
StarBound has placed a unique mechanic around selling it’s tokens to better protect it’s community from these problems. While almost all other projects focus on buying behavior, StarBound has placed a limit on how much can be sold at one time. This amount is equal to 33% of a holder’s current balance. While some investors may be put off by the idea of not being able to sell all of their tokens in one transaction, let’s take a look at the effects this produces. First, it immediately stops automated trading software designed to detect and encapsulate an incoming buy order. This is normally accomplished by the “bot” spending extra gas to buy in lower before the order goes through at which point the bot would sell immediately, effectively stealing from the investor in a trap known as “front running.” This 33% limit does not stop StarBound holders from continuing to sell their tokens, there is no limitation on the number of sells.
One of the most common scare factors of investing in tokens is the ability of “whales” dumping their holdings. If a holder initiates multiple sells in one day, our smart contracts read this as a dump and place a double tax for liquidity on each additional sell within 24 hours. While a large holder can still sell out the majority of their balance in one day (StarBound doesn’t prohibit investor’s ability to sell) the process of doing so contributes more into the project’s bottom line of liquidity. We call this method, incentivizing smart profit taking.
StarBound’s deflationary model combined with a self building liquidity pool create a greater Store of Value. With our upcoming announcements along our roadmap, we hope to excite our community and gain new members to make our journey their journey. From everyone at StarBound, thank you to all of our supporters!
