Custom Tokenomics
Last updated
Last updated
When a token debuts on a liquidity pool, early purchasers known as snipers, attempt to acquire it due to the potential for significant returns. The market offers various tools that enable actors to obtain large quantities of these tokens at minimal prices. This practice can lead to inflated costs for subsequent investors and adversely affect the token’s market stability due to potential mass sell-offs by the snipers.
To counteract sniping risks, some projects implement a whitelist during the initial launch phase, allowing only pre-selected addresses to make purchases. A blacklist may be employed to prevent certain addresses from engaging in future transactions with the token. However, whitelists inherently introduce a centralised element, potentially granting an unfair advantage to those included. Conversely, blacklists can be exploited by unscrupulous entities to hinder investors from selling their holdings, posing a risk to market integrity.
A strategy to prevent sniping threats is to set temporary transaction and wallet limits, which can be lifted once the token achieves stability. A higher tax rate on initial trades or for a set duration serves as a deterrent to sniping by introducing financial consequences.
However, the risk of manual tax adjustments is significant as malicious actors could manipulate the contracts, setting the selling tax to 100% and creating honeypots. Deploy Multiverse employs immutable tax rates to safeguard deployed tokens against sniping where tax parameters are established at launch and cannot be manually altered. For example, a deployer can set an initial high tax of up to 40%, lasting either for up to a max of 72 hours or for up to a max of 100 buy counts. Once this period concludes, the tax rate automatically reduces to final tax set by deployer which cannot exceed 6%.