Day 3 — Smart contract
Our infrastructure, social networks is good, but lets focus on the concrete. It’s always better. We are just a small team. We are stopping to sleep and already start to develop our smart contract.
The HOLD token will therefore be an ERC20 token. We have thought long and hard time who give us some experience, we have several examples of a deflationary token. Some of them have self-destructed and/or turned out to be insecure, they have flaws for proper functioning.
The HOLD token will not be the only token in the ecosystem that we are in the process of setting up. Step by step we will explain here for the process and our way of thinking for this token.
A deflationary token
We will adjust the token burn rate directly in the smart contract before its deployment. We had a vote in our management and dev team.It may differ slightly from the first figures announced the first days. But dont worry, this won’t affect the schedule realease for 2021.
We need to create the best rate to avoid some of the problems that classic deflationary tokens encountered.
Understanding the benefits of a deflationary system
In a classic token like Bitcoin, the total supply is 21 million tokens. Not all tokens are issued. They are mined by Bitcoin miners. Bitcoin cannot be mined beyond 21 million.
In a deflationary system scarcity happens more quickly. Because unlike our King (BTC), all tokens are issued at the start. This time the number of tokens will be reduced by a burning system until leaving only a final supply (which will be 1,000 token).
This infographic shows us how Bitcoin grows in value over time.This time all 10,000 HOLD will therefore be directly issued and a part will be burned in transactions until there is only 1,000 HOLD left. The more the tokens are used and exchanged, the more they will burn. The decrease of the HOLD token will therefore be artificially created without the harmful effects of mining.