What’s in the bag…???
Magic Bag ($FELIX) is a groundbreaking token project that introduces an unparalleled and continuously evolving approach to tokenomics. This article is to provide a comprehensive overview of Magic Bag’s innovative tokenomics, which include True Burn, Smart LP, and $ETH Reflections.
The $FELIX Smart Contract achieves all 3 afore mentioned functions while maintaining low gas fees on end user transactions through the use of several key features; namely, randomness to change the function of the smart contract on every buy or sell transaction in tandem with internalization of fees.
What does that mean? Every buy or sell is a game of chance on which function will be performed by the contract and fees for swapping ETH for Reflections or the Treasury are paid by the deployer instead of tacked on to end user buy and sell transactions .
The Tokenomics of Magic Bag ($FELIX)
“Burn” — True Burn:
One of Magic Bag’s unique features is the True Burn, which sets it apart from traditional burns. With each True Burn interaction, $FELIX tokens undergo a genuine burning process, thereby permanently decreasing the token’s total supply. The Magic Bag dApp’s “Incinerator” feature enables holders to effortlessly contribute to the ongoing burn.
This perpetual reduction in the total supply leads to a supply shock effect, especially when combined with Smart LP; consequently, holders own a higher percentage of the total supply over time, which amplifies not only the value of their holdings but also their share of reflections and rewards.
The Magic Bag dApp is equipped with an Incinerator to allow anyone holding $FELIX tokens to contribute to the burn! By connecting and approving $FELIX for the Incinerator, it’s that easy to let it BURN.
“Grow” — Smart LP:
Another innovative feature of Magic Bag’s tokenomics is Smart LP, which is a low-fee, auto-growing liquidity pool. Smart LP is designed to automatically contribute to the liquidity of $FELIX, rewarding LP token holders without the costs associated with standard Auto LP.
When triggered by the contract, the “Smart LP” feature redirects the tokens meant for liquidity directly back to the LP pair address, simultaneously preventing buyers and sellers ETH from withdrawing from the pool and providing LP rewards to LP token holders. With this function, it’s as if their tokens and ETH never left the pool.
This eliminates heavy gas fees by replacing the conventional auto LP function which sells half of the tokens collected for liquidity to pair with ETH and create new LP tokens, leaving the chart painted with sells and users with the substantial transaction cost.
The LP rewards generated in this manner are VERY attractive for long term holders. While LP token holders will not be able to claim ETH reflections (yet…), by simply providing liquidity to $FELIX, LP holders gain a significant share of a much larger pool of rewards.
“Reflect” — ETH Reflections:
Reflections are a critical aspect of Magic Bag’s tokenomics that enable holders to earn $ETH based on their percentage of ownership. Whenever the contract triggers the reflection function, token holders are assigned a fraction of those reflections based on the extent of their holdings.
Thus, the more tokens a holder possesses, the more $ETH they will earn from the Reflections feature. The Reflections function operates by allocating a portion of the reflections generated by the smart contract to token holders based on their holdings.
The Magic Bag dApp is an easy way for holders to claim their reflections! With a few clicks, we have made it very simple to claim reflections, burn tokens, and more.
In addition to $ETH generated from reflections, the $FELIX smart contract allows additional $ETH to be added as rewards from the Treasury which are claimable as reflections. More on the Treasury next time.
Summary
The value of a token is vastly determined by its supply and demand. The combination of True Burn and Smart LP mechanisms in $FELIX create a cycle of reducing token supply and increasing liquidity, which is a powerful force in the cryptocurrency market. This creates a token that becomes more valuable over time, making it a promising investment for long-term investors.
In the case of $FELIX, this combination has been carefully designed to maximize the benefits of both mechanisms while rewarding holders with ETH just for holding through Reflections. By synergistically harnessing the capabilities of True Burn, a demand-boosting mechanism, and Smart LP, a supply-generating mechanism, the dynamic interplay within $FELIX token’s ecosystem cultivates the inherent potential for it to evolve into a highly sought-after asset of significant value as time progresses.
This powerful combination of mechanisms creates a positive feedback loop that directly benefits $FELIX holders.
Conclusion
With its innovative approach to token burning, liquidity provision, and rewarding holders, $FELIX has the potential to become a major player in the world of cryptocurrency. As more tokens are burned, the total supply of $FELIX decreases, creating scarcity that can drive up demand and increase the token’s price. At the same time, the Smart LP mechanism ensures that there is a deep pool of liquidity for $FELIX an as more tokens are added to the liquidity pool, the supply of available $FELIX for trading increases, making it easier for traders to buy and sell the token in size without causing overly significant price fluctuations.
Overall, $FELIX is designed to be a reliable store of value with deep liquidity, making it an attractive asset for traders and investors alike.
And this is really only the tokenomics section…more soon.
