Greetings Gnoxians! 🍏
In this article, we will describe the mechanism of how $BUSD reflections work. The reflections will be divided into two main revenue streams:
1- Hourly Reflections
The $GNOX tokens can simply be held to automatically receive a proportional share of 10% of every transaction in $BUSD.
Tax Breakdown
1% of every transaction is redistributed to holders in $BUSD, which is automatically paid every 60 Minutes.
1% of every transaction is transferred into a Liquidity Pool for Pancakeswap to create a stable price floor.
6% of every transaction is transferred into the DeFi Treasury. You can view Treasury from here https://bscscan.com/address/0x9847172a995A0906fA638D1A8813a164f320583f
2% of all transactions are dedicated to marketing efforts to create a consistent flow of new users and token price appreciation.
How Does This Work?
When investors buy $GNOX, the contract sells the taxed amount of each purchase and starts the distribution process on all $GNOX holders.
Why Am I Not Getting My Hourly BUSD Reflections?
1- You hold a small amount of $GNOX
2- You may be getting them but you need to add $BUSD/BEP20 to your wallet 0xe9e7cea3dedca5984780bafc599bd69add087d56 to be able to see them
2- Monthly Reflections
The totality of funds accrued in the treasury will be deployed across various DeFi protocols with GNOX token holders being given the opportunity to vote on how the funds are allocated. The revenue generated by the treasury will be converted to stablecoin and then split two ways: 60% will go directly towards the treasury to ensure a larger capital sum with which to generate revenue, and 40% will be distributed to all GNOX holders proportionate to the number of tokens held.
Low Risk
A low-risk option for the treasury would be to engage in DeFi stable coin loaning protocols with large well-trusted protocols such as Aave or Curve Finance. Or to provide stable coin pairs to liquidity pools again on large well trusted protocols. With the risk being low, the reward would also be low, with the APR typically being in the low single digits. This option would represent the safest investment strategy with no real chance of fund loss. However, stable coin payouts to the investors would be low.
Medium Risk
A medium-risk option for the treasury would be to engage in liquidity providing. A good example of a pairing that would satisfy this risk tolerance is CAKE-BNB which currently offers a 30.14% APR. This pairing offers a good middle ground for CAKE the native token of the popular DEX PancakeSwap is a token that is longstanding, and BNB the native token of the Binance Smart Chain is also longstanding. These two tokens also display a correlation that makes them safer than most liquidity-providing pairs. If more people are using BNB it is likely more people are also using CAKE, therefore demand and thus the price of BNB and CAKE are very loosely paired which helps to protect the investor against Impermanent Loss.
In regards to rewards for liquidity providing: a portion of each transaction is distributed to liquidity providers in return for providing liquidity. The central risk involved when providing liquidity is Impermanent Loss. Participants must understand the dangers of proving liquidity and in certain cases, participants providing liquidity can experience losses greater than if they had just held the tokens separately.
High Risk
A high-risk option, it should be noted, is not encouraged during times of intense market volatility and a strong bearish sentiment would be liquidity providing to a lesser-known pair offering a higher APR. The smaller the total liquidity in a pool the higher the returns because the risk the investor takes on is greater. Investors must understand that even if a liquidity pool offers an outrageously high APR, sometimes as high as 1000%, nothing can protect the investor from a decline in the coin’s price. To illustrate, even a 9,500,000% APR is utterly worthless if the token’s price drops by 95%. This has been highlighted by the decline of the high APY DAOs including but not limited to Olympus and Wonderland both down more than 90% from their All-Time Highs with both showing no signs of recovery.
NFT Acquisition
This strategy can be broadly considered high risk and will be done in special circumstances but depending on the acquisition the risk categorization will be subject to change. Within this risk categorization, a medium-risk option for NFT acquisition would be projects similar to Sappy Seals or Cool Cats which already have an established floor price. A high risk would be an unknown NFT project which could appreciate or turn out to be worthless. NFT acquisition will be made in rare circumstances when the opportunity is provided by market conditions.
