Programmed to protect and reward holders while increasing liquidity and value
The increasing popularity of Decentralised Finance (DeFi) has helped many people who were involved in early stage Liquidity Provider Farming (LP farming) and Yield Farming to earn great returns on their initial investment.
While it's great that there are people who have made money from LP and Yield farming, we can't ignore the fact that there are too many new investors who have been lured and involved in a high Average Per Year (APY) LP and Yield farming trap that are being crowded out by previous buyers with higher staking rewards and also suffer impermanent loss (IL) on their staked tokens.
While we keep in mind that token farming is not always fair, we face another problem that often occurs - the token suffers from the potential valuation bubble or becomes increasingly volatile. One reason why the token price risks becoming very volatile is when a smaller number of investors are allowed to hold a larger share of the pool. This threatens the price stability of the token and causes holders to lose part of their investment.
The Zummond Smart Contract attempts to solve this problem by applying progressive tax fees to all transactions (purchases or sales), with 50% of the fee automatically distributed to holders. This means that the amount of tokens in each wallet increases with each transaction, which ultimately eliminates the problems caused by farming rewards described in the Abstract section above.
The other 50% of the fee is being added to the PancakeSwap Liquidity Pool to guarantee stability and steady rise of the price floor of Zummond Token. This way the impermanent loss (IL) is avoided and instead you get rewarded for holding Zummond Tokens.
As part of the tokens were burned before the pre-sale launch, the burn address became $ZMMD holder. This means that this dead address, which no one has access to, will receive transaction rewards, which ultimately means that the tokens sent to this address will be permanently locked and considered burnt. This means that the total number of tokens in circulation is constantly decreasing, which increases the chance of supply and demand balance for ZMMD tokens and slows down the inflation rate. Further burns of LP tokens would take place in different phases after the launch. This will be announced beforehand and the addresses will be shared with the community.
By imposing a progressive tax fee ranging from 4% to 18% and distributing this tax fee of each transaction 50-50 between the holders and the liquidity pool, the Zummond Protocol becomes an autonomous return and liquidity generation protocol that offers static rewards to its holders while the liquidity pool keeps growing and the number of tokens in circulation decreases with each transaction.
The Zummond protocol is an autonomous return and liquidity generation protocol that offers static rewards to its holders while constantly increasing the liquidity pool and decreasing the number of tokens in circulation with each transaction