CLIFF Uses Deflation Mechanism To Increase Token Price Regularly


Dogecoin started as a joke, but eventually attracted billions of dollars and the interest of Elon Musk himself. The cryptocurrency with the Shiba Inu dog as its logo has become an inspiration for many other crypto projects. The most recent example is: cliff, although it is not designed as a purposeful parody. Rather, Cliff, who also has a dog as a symbol, is trying to help investors achieve significant returns by implementing a deflationary model.

What is Cliff and how does it work?

Cliff is the first token with a true burn feature that can instantly and instantly increase the price per coin as a result of burning the circulating stock. The combustion mechanism ensures that Cliff continues to regularly dispose of the excess liquidity. Every time it does this, the event pushes the price of each token up by a certain percentage. In addition, the value of the token also increases as Cliff has exposure to yield-bearing assets with the aim of providing value to token holders.

Cliff is thus a token that wants to act as a hedge fund and grow continuously thanks to two main mechanisms: burning a percentage of the circulating supply and investing in yield-bearing assets.

Here’s how the burn feature works:

Any trade on Uniswap or any other DEX comes with a liquidity fee. Currently, the tax is set at 5% for purchases and 8% for sales, but it is subject to change based on market conditions. After a certain threshold, the smart contract releases the accrued fees and injects it into liquidity (initial LP tokens are burned forever). When the fire function is activated (it can be done manually when the team decides or automatically according to the schedule), the contract decouples a percentage of the circulating stock and sends it to the fire address. In principle, the process is similar to share buybacks, where companies buy their own shares in secondary markets to reduce the circulating stock offering to the public. As a result, each token increases in value immediately after burning.

When it comes to investing, Cliff gains exposure to a variety of assets that can appreciate in value over time. In addition to the liquidity pool tax, each transaction imposes a 6% tax on purchases and 7% on sales, which is used for marketing campaigns and revenue-generating investments. As of today, Cliff will be invested in stablecoins used for staking, LAND assets, and other non-functioning tokens (NFTs). Ultimately, the wealth generated is returned to the ecosystem members.

Cliff Features

Cliff token relies on a hyper-deflationary model to encourage a never-ending bullish trend. Here are the key features of the token that you should be aware of:

Pre-determined automatic real burns – one of its unique features is the code programmed to unlink a small percentage of tokens from the pool and burn them regularly, creating a higher price floor over time. Manual burn when liquidity is oversaturated – the manual burn is used by the Cliff team to disconnect the excess liquidity, causing the token price to increase immediately after the burn. Stable Liquidity Pool – Unlike other liquidity pools, Cliff holders are not required to stake their tokens. Instead, a tax is levied on each trade and goes to the liquidity pool address to ensure that Cliff becomes less volatile over time. Anti-Whale – During the launch phase, the maximum amount a wallet could hold was 0.1% of the total stock, ensuring a well-distributed stock among the holders. Marketing incentives – A marketing tax is applied to every purchase and sale to ensure that the team has sufficient funds for the marketing campaigns and to invest and donate to charities. Security – The Cliff token’s security is based on the Ethereum architecture itself. Moreover, the smart contract has been audited by CERTIK, one of the most recognized platforms for monitoring and controlling blockchain and decentralized financial (DeFi) projects. The code is programmed in such a way that the initially burned liquidity can never be retrieved, while newly generated liquidity tokens go straight to a dead address.

Cliff as gateway to RED

The Cliff community has the opportunity to learn about another great token that will be added to the ecosystem soon. Known as REDit will act as a governance and revenue-bearing asset.

RED will be a valuable asset to Cliff investors, and the only way to acquire it is to evict Cliff. RED holders can submit ideas and vote on investments proposed by the team. RED will also be the token to get a return on the invested capital.

Thus, the ecosystem will be fueled by two tokens that aim to provide real value.

Image: Pixabay

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