RFI Technology
The Xride project has implemented a unique approach to its tokenomics using RFI (Reflect Finance) technology. Here's an explanation of how it works:
Burning Option:
Transaction Fee: The smart contract collects a 1% fee from each transaction. This fee is designed to enhance stability and control unwanted inflation within the ecosystem.
Dynamic Burning: The collected transaction fees (1%) are not kept by the platform but are instantly forwarded to the ecosystem's dynamic burning mechanism. This means that a portion of tokens is burned or removed from circulation with every transaction, reducing the total supply over time. Burning is a deflationary mechanism designed to increase the value of the remaining tokens.
Reflection Option:
Community Decision: If Xride members vote in favor, the platform can enable the reflection function on the contract. This function modifies how the collected fees are distributed.
Token Redistribution: With reflection enabled, instead of burning tokens, they are redistributed among the holders. This means that token holders earn a passive income from transaction fees by simply holding onto their assets. The percentage of fees distributed among holders is determined and can be adjusted by community members' vote, with options between 1% and 5%.
Ownership Limitation: There is a limitation set by the contract owner to prevent excessive burn or redistribution percentages. The owner cannot set percentages higher than 5% for burning or redistribution.
Community Governance: Importantly, the burn and reflection functions are not active by default. They can only be enabled through a community vote. This ensures that major decisions about tokenomics are made collectively by the project's community, increasing transparency and decentralization.
Xride project uses RFI technology to manage transaction fees in a way that benefits the community. The default option is to burn tokens, reducing supply and potentially increasing token value. However, the community has the power to switch to a reflection model, redistributing fees among token holders, with the percentage determined by community consensus. This approach aligns with the principles of decentralization and community governance.
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