VaultDefi announces change to “Native, Compounding Token” SafeVault
On Saturday September 11th, 2021, following a community poll performed on the Official Telegram Channel, the VaultDefi team announced that they would be changing the predominate reflection of the SafeVault token from SafeMoon to BUSD, a US Dollar based Stable Token. This decision was not made lightly and was done for a number of beneficial reasons:
1) Changing to BUSD will allow for more reflections to holders than the current SafeMoon setup. Due to the tax on SafeMoon, Vault reflections were losing 20% of their value before reaching their recipients: 10% when Vault purchased the SafeMoon and then another 10% when the SafeMoon was transferred to the recipient. If the recipient then wanted to transfer OUT of SafeMoon and into another token, they would pay another 10% tax. By swapping to BUSD, SafeMoon holders can still receive reflections and actually purchase MORE SafeMoon than in the previous setup because they are eliminating one of the 10% taxed transactions. Check out the video linked below where Crypto Math Wiz explains how this change nets you a 37.2% increase in reflections.
2) Changing to BUSD will encourage a broader range of investors to join the VaultDefi Empire. Currently many are leery of investing in VaultDefi simply because they have no interest in SafeMoon or the product they provide. Changing to a Stable token like BUSD allows them the flexibility to invest in VaultDefi for the long term and either directly spend their reflections or transfer it into another holding of their choosing with minimal fees.
3) Changing to BUSD allows for a hedge against the inherent volatile nature of the crypto market. BUSD tracks the US Dollar and is thus always equal to $1.00. Any other asset, whether it be SafeMoon, Bitcoin or Binance Smart Chain all move with the bull and bear markets within the crypto space thus making the reflections unstable. By reflecting BUSD, holders are allowed to use this more as a saving account than a traditional investment vehicle, making it the perfect asset for long term growth.
4) Unfortunately, with the direction that the SafeMoon project is taking (transferring from a token to a coin with its own blockchain) a change would have to have occurred by January 1st at the latest. By making this proactive change early, the dev team is once again proving their professionalism, foresight, and problem-solving abilities, creating solutions before there is a crisis or any disruption to the holders.
*Please note that the author is not a financial advisor and makes no claims to be one, this article is not intended to be financial advice. The numbers and rates of return mentioned in this article are valid as of the time of writing and they do not guarantee future performance. SafeVault and the VaultDefi team are not affiliated with SafeMoon.