FAQ

What is the purpose of the rebase?

First things first. What is a rebase? A rebase is an adjustment to the balance of tokens in the wallets of everyone holding the tokens. So, if there is a 10% rebase everyone has 10% more tokens in their wallet than they had before. It is an expansion or contraction of supply therefore.

At first glance, it might look like INFINITY’s burn and rebase is about reducing supply to affect price. But, historically, token burns for most projects don’t make much impact on price — that is to say price can tend to be insensitive to burns — and in the case of INFINITY the max burn before rebase is less than 1% of supply so it is not dramatic.

No, its not about stimulating price. The purpose of the INFINITY rebase is to redistribute INFINITY to longer term holders.

A person who supports the INFINITY model could plan in hodl INFINITY for an extended period of time. And by “extended” we mean more than a year (Yes, such people do exist even in DeFi). This person benefits from continuous top-ups of tokens to their wallet via the rebase mechanism.

Essentially, de facto farming by hodl

Is INFINITY deflationary

INFINITY rebases a total of 500,000 tokens at the end of each cycle which means that 137,500 are burned perminently each cycle. The contract owner can set the number of cycles after which FOT will become 0 which means burning will cease. This is initially set to 500 cycles after which the total supply will have reduced from 100mm tokens to 31,250,000 tokens.

INFINITY is a deflationary supply elastic protocol

What lies at the heart of Liquid Vault integrations?

Liquid Vaults are about liquidity and their “currency” is LP tokens. Core Liquid Vault functionality includes LP lock and LP donation. The “donation” happens when users claim their LP after the lock period; a portion of their LP tokens are sent to the “zero” address i.e. locked perpetually. The underlying liquidity of course continues to benefit the system but the LP tokens will never ever be unpooled.

LP tokens create a kind of price floor for any system.

They are, after all, comprised as part token and part Ethereum. So, having Liquid Vaults as the core connected mechanism to INFINITY means that over time a price floor for the token becomes increasingly defended.

While Liquid Vaults are receiving FOT revenues they act as auto-generating liquidity sub-protocols serving the goals of Infinity Protocol

Why increase FOT over the course of a cycle?

This mechanism interplays with buy, sell or hold decisions as well as launches of new Liquid Vault innovations. Each cycle includes 14 jumps where the FOT increases by 0.5% from 5% initially to 12% in the final phase before the next rebase after which the next cycle begins. Each jump happens when 1mm tokens are transferred (can be a swap, pool, or just sending tokens for one wallet to another).

Liquid Vaults will typically offer LP tokens at an attractive discount but locked for a period. It will be “cheapest” to join the LP early in a cycle and the more people join the more jumps will occur meaning that even if the LP tokens are unlocked it is more costly to exit the LP until the cycle concludes. Jumps therefore represent another mechanism that promotes holding. When combined with Liquid Vaults they in particular incentivise holding LP tokens for longer thus strengthening the system until the next Liquid Vault innovation is unleashed at the start of the next cycle.

The tokens FOT acts like an economic lever that supports the LP

Why Alphadrop?

Alphadrops are Degen VC’s way of helping new projects launch. The tendancy these days is for projects to do a token sale and use proceeds from this for liquidity on an AMM. The elephant in the room is that it is illegal to sell tokens like this in many regulated places. Alphadrops are not token sales. The AMM market is started by someone and available to anyone with tokens to use.

The price of INFINITY or any token launched in this way for that matter is in no way related to any offering or sale. Its value on the AMM is the value that the decentalized market attributes to it — whether the token trades for a fraction of one cent or one hundred dollars depends on the free market alone. Projects that chose to sell tokens with a defined value expose their buyers to direct risk. The corresponding regulatory risk never goes away; their communities will foreveer be exposed to it; it is baked into their tokens.

Why launch on chains other than Ethereum?

Sure, gas cost is one issue, but increasingly other chains are truly distinct communities of liquidity. If a protocol works for the Ethereum community, why not offer it to the Binance Smart Chain community. We are not saying that there is not overlap; there is overlap. But the chains, while increasingly having connections or “bridges” between them, are fundamentally different blockchain universes with their own core currencies and users. We don’t see INFINITY stopping with BSC either. Lets launch on other chains too.

Who controls INFINITY?

DeFi is usually a journey from individuals being able to change parameters in a smart contract to a DAO being able to change them. Once the DAO takes over, the protocol is of course much more decentralized.

Degen VC can change:

• the address to which FOT revenues are sent;
• the FOT amount (it automatically reverts after each jump though); and,
• the number of cycles after which the FOT becomes 0.

It is a relatively simple set of parameters and therefore very suitable for transition to DAO control once the community is sufficiently decentralized. We think it is a fascinating and thrilling day to look forward to when a DAO will vote on which innovation receives FOT revenue on the basis that it best serves the system. This is a staggering store of value innovation when you think about it — no powerful miners pulling strings, just smart contracts and community.

What do you mean vampire attack other store of value projects?

When a project has all the characteristics and mechanisms of other projects BUT also the utility to constantly add, upgrade and/or improve on the underlying innovations and fundaments, then its future is bright.

This is the case with INFINITY as compared to Axion, Core, Safemoon, Lightning and others.

Furthermore, these projects offer the INFINITY community a reference point on price- a guide market cap for the token under which traders might consider INFINITY good value as it advances on its journey from its $0 alphadrop to who knows where — Infinity and beyond!