Last evening in our community AMA, besides unveiling our refreshed SafeMars website, announcing competition winners and burning 1 Trillion SafeEarth, we also launched an idea…
…what if we redirected 1% of the transaction tax towards other purposes?
As you might be aware, every SafeMars transaction is taxed with 4%:
- 2% is redistributed to holders
- 2% is automatically added to liquidity
This works great so far.
On SafeEarth the situation is a bit different, we still have 4% tax, but 1% of it goes towards a marketing wallet that’s used for both SafeEarth and SafeMars. So far this also works great and enabled us to set some pretty big plans in motion.
But what if we could go BIGGER?
We’ve been brainstorming plans on how to take SafeMars and SafeEarth to the next level. Some points have been sticking out:
- we need MASS adoption
- we need MASS community involvement
- we need AWESOME technical innovation
While the existing budget has been helping, to truly go next level, we need to think bigger.
Towards that end, we teased last night the idea to use 1% of the SafeMars transaction tax towards reaching these goals.
There is technically no way to change the 2% tax that goes to holders. It’s in the smart contract and the destination of the 2% cannot be changed.
However, we COULD change the destination of the 2% auto-liquidity tax. Specifically, every time our smart contract auto-adds liquidity to the Pancakeswap pool, it gets back a “ticket” to that liquidity, in the form of LP tokens. Using this “ticket” (the LP tokens) one can take back liquidity out of the pool (only the value represented by the LP tokens, not more, so if say the smart contract auto-added 10 BNB worth of liquidity, the equivalent LP tokens can be used to get 10 BNB out)
These LP tokens actually get sent to the contract deployer (which we control). Until now we’ve always BURNED these LP token as our commitment to the community to always be unruggable. To be absolutely clear: ALL OF THE LIQUIDITY currently in the pool is LOCKED FOREVER. Even if new liquidity is added, the old liquidity cannot be taken out 🎉
Currently, that liquidity is $12 million, locked forever!
So, to recap:
- we have $12 million in liquidity, locked forever
- more liquidity is auto-added on each transaction (2% of that transaction’s worth)
- the ticket to the NEWLY added liquidity (in the form of LP tokens) gets sent to the deployer
- until now the deployer BURNED those LP tokens, thereby locking also the newly added liquidity away forever
Now, say we’d like that instead of 2% of each transaction only:
- 1% is added to liquidity
- 1% is redirected towards other purposes
…we could do that by means of the LP tokens! Specifically, every once in a while (say daily or weekly) the deployer would:
- take half of the LP tokens and burn them (thereby locking 1% of the newly added liquidity from tax away forever)
- take the other half of LP tokens and remove that liquidity from the pool
Wait, remove liquidity, what?!
I need to stress it again: ALL OF THE LIQUIDITY generated so far IS LOCKED AWAY FOREVER! (I keep writing this because of inevitable FUD incoming 😃)
What we’re proposing is that for NEWLY generated liquidity we lock away forever 1% of the transaction tax, while reusing 1% for other purposes. Again, we’re talking about removing 1% of the transaction tax and only NEWLY ADDED liquidity.
As the current liquidity of SafeMars is a comfortable $12 million, we think we can safely remove a part of the NEWLY ADDED one, while still allowing 1% of each transaction to be added to the pool (and locked away forever). The locked liquidity will still increase (by 1% of each transaction) and we’ll have also funds per the proposal.
This mechanism has actually ANOTHER pretty cool benefit! Whenever one adds liquidity to a pool, it’s always a pair of tokens, in our case BNB/SAFEMARS. When you remove liquidity, you also get back both.
So if we remove some of the newly added liquidity, we’ll get some BNB and some SAFEMARS.
We will use the BNB, but we will BURN THE SAFEMARS TOKENS! 🔥🔥🔥
This means that in additional to the Black Hole burning on every transaction, we will burn AN ADDITIONAL 0.5% of each transaction, specifically:
- 1% of each transaction’s auto-added liquidity is removed
- 0.5% of that is BNB we can use
- 0.5% of that is SAFEMARS that WE WILL BURN 🔥🔥🔥
So, to conclude:
- we’ll have BNB to use for big things
- we’ll burn 0.5% of each transaction thereby further reducing the circulating supply
We’ve thought long and hard about this and it looks like a win-win scenario for everyone! 🎖
To be clear though: we will put up a vote and we WILL obey the community’s decision. If you have any questions or doubts about the proposal, feel free to ask us in our telegram channels.
Ok, how much BNB and what will the BNB be used for?
The answer to “how much” depends on transaction volume. We will get 0.5% of each transaction. Given the volume on SafeMars is A LOT, that should be a good amount. As an example, over the past 3 days it would equate to about 40 BNB. If we have more volume it will be more, if less then less. But you get the idea.
What will it be used for? The points highlighted above. But to start with…
…we thought of organizing an AMAZING competition for the community!
To be clear, we will put up a vote and the competition will only run if the community votes in favor of the tax redirection. Having said that…
We’re giving away a Tesla Model 3! 🎉
That’s right, one loaded Tesla Model 3 is up for grabs! (either the actual car or the cash equivalent)
We’ll launch the community vote and it’ll run for 24h. If the result is favorable, we’ll announce the competition details officially, but here’s the gist of it:
- You’ll need to BUY at least $X (to be announced) of SAFEMARS or SAFEEARTH (that’s right, holders of both can participate!)
- HOLD it for the duration of the competition (no sells)
- Quote tweet our announcement (not live yet, stay tuned)
- The competition runs until the budget for the Tesla accrues! That’s right, we don’t have some weird deadline like “we need to reach ATH” or “3 months” or whatever, we will pick a winner as soon as we can pay out the prize! 💪
It is our strong belief that if the community votes for our proposal, this competition will be THE FIRST OF MANY! We hope to be able to raise enough funds to reach all of our goals outlined at the start, including rewarding the community with amazing prizes (Model X next? 😉).
How to vote?
We’ll announce the result in 24h.
Thank you all! Let’s do this! 💪