[Announcement] HPL deflationary and burning mechanism

Transaction Fee Mechanism Design Explained:

HappyLand Trading Fees Explained

As all transactions need resources and infrastructures to complete, fees are an unfortunate but compulsorily necessary part of trading cryptocurrency. It is also impossible to interact with a public blockchain without experiencing some sort. Even being advertised as “free-of-charge,” every trader will have to pay at least 0.5 to 1 percent per transaction.

How much are exchange fees, and what exactly am I paying for?

If I have to pay them, may I know whose favor it will be in?

How many fees are there? Are there other types of fees too?

We came through lots of questions, and we can’t wait to answer you all here in this article.

There is a vast amount of fees out there in the market, and each platforms or providers charge a different set of fees: spreads, network fee, maintenance fee (deposit/withdrawal fees, wallet/transfer fees, staking fees), blockchain fees (ledger transactions fees, off-chain fees), etc.

HappyLand Fees

To keep liquidation high and transactions easy to come through, HPL has 2% per transaction. The fee is only applied when buy/sell on DEX (Pancakeswap). Transfers between wallets to wallets do not have fees.

Which means

Makers sell 100 tokens and get 98 in return

Takers buy 100 tokens and earn 98

Of which there are:

• 0.5% for direct burning
• 0.5% for staking reward funds
• 1% for liquidity

For example, if HPL is $1 and the transaction volume is $10,000,000

• 50,000 HPL will contribute to direct burning
• 50,000 HPL to staking reward fund
• 100,000 HPL to liquidity

Direct burning

Coin burning happens when a cryptocurrency token is intentionally sent to an unusable wallet address to remove it from circulation. Think of it as how pure gold is in the market. Imagine a millionaire buys all the gold in the market and claims dictatorship over it while there is a huge demand, making the rate pump as high as the rich guy wants. Direct burning is the solution to that.

To ‘burn’ these tokens, their signatures are sent to a black hole (or “eater”) address. This is an irretrievable public wallet that can be viewed by anyone and the coins’ status is broadcast to the blockchain.

Burning tokens, just as with the Bitcoin Halving, come down to the laws of supply and demand by restricting the supply. If the demand stays the same or increases, the price will naturally go up. If the demand dwindles, the burning won’t have had much effect.

It also increases the cryptocurrency’s scarcity, keeping its rate stable.

Staking

Staking funds will be rewarded for users who stake HPL to earn HPL. Having staking funds constantly increased helps keep inflation low while still rewarding staking users. But why would people get rewarded for staking?

You can’t withdraw the money instantly as you did with the fiat. It’s the reservation that needs to be in the staking pool for at least a predefined number of days before you pull it out.

It’s a committing act to support a blockchain network and confirm transactions.

Staking does come with huge benefits :

• It is an easy way to earn interest in your cryptocurrency holdings. It can be very generous, in some cases, 10% to 20% per year.
• You don’t need any equipment for crypto staking like you would for crypto mining.
• You’re helping to maintain the security and efficiency of the blockchain.
• It’s more environmentally friendly than crypto mining.
• Diversify assets and reduce transaction fees on the blockchain.

Liquidity

Just like Paul Krugman, the winner of the 2008 Nobel prize in Economics, put it: “Liquidity for markets is what oil is for car engines.”

Liquidity is the lifeline of the crypto market. Benefits are:

• It reduces investment risk; and, importantly, helps define your exit strategy — making it easy to liquidate your holding. As a result, investors and traders prefer liquid markets.
• Highly liquid nature of top-performing cryptocurrencies makes them very resistant to market manipulations — more market players (buyers and sellers) mean smooth transactions. So, it becomes tougher for a single market player (or group of high-end players) to control the market.
• High price stability and less volatility
• Easier to analyze Trader’s Behavior
• Faster trading period

This 1% will be used to increase liquidity, which makes it more attractive to investors. In detail, it will be used to sell HPL for BUSD on Pancakeswap automatically. The more the transaction, the higher the liquidity and the lower the slippage. This method is a dream scenario for everyone.

Conclusion

We built this mechanism while putting the investors at the core: high liquidity, high scarcity, less slippage, and stable infrastructure & network. If you have more questions, drop us an email at founder@happyland.finance