| Model | Total Supply | Token Creation |
|---|---|---|
| Fixed Supply | Fixed | No new tokens can be created |
| Dynamic Supply | Variable | New tokens can be created based on conditions |
Hybrid Model
The Hybrid Model combines elements of both the Fixed Supply Model and the Dynamic Supply Model. With this model, a portion of the total supply is fixed, while the remaining portion is variable and can be adjusted based on certain conditions.
Advantages and Disadvantages of Token Distribution Pricing Models
* Fixed Supply Model:
+ Advantages: creates scarcity, drives up demand
+ Disadvantages: inflexible, may limit coin’s potential
* Dynamic Supply Model:
+ Advantages: flexible, allows for adaptation to changing market conditions
+ Disadvantages: may lead to inflation, decreased coin value
* Hybrid Model:
+ Advantages: balances flexibility and scarcity
+ Disadvantages: complex, may be difficult to implement
Real-World Examples
Let’s take a look at some real-world examples of meme coins that have successfully implemented token distribution pricing models.
For example, the meme coin, Garlicoin (GRLC), uses a unique token distribution model that combines elements of both the Fixed Supply Model and the Dynamic Supply Model. The total supply of GRLC is capped at 1 million, but new tokens can be created through a process called “mining.”
Further Reading
For more information on token distribution pricing models, check out our article on Tokenomics. You can also learn more about the different types of Cryptocurrency and how they work.
Tables and Figures
The following table highlights the key characteristics of popular meme coins:
| Coin | Token Distribution Model | Total Supply |
|---|---|---|
| Dogecoin (DOGE) | Fixed Supply | 100 billion |
| SafeMoon (SAFEMOON) | Dynamic Supply | Variable |
| Shiba Inu (SHIB) | Hybrid | 1 quadrillion |
Glossary
* Token distribution pricing model: a model that determines how tokens are distributed and priced.
* Fixed Supply Model: a token distribution model in which the total supply of tokens is fixed.
* Dynamic Supply Model: a token distribution model in which new tokens can be created based on certain conditions.
* Hybrid Model: a token distribution model that combines elements of both the Fixed Supply Model and the Dynamic Supply Model.
Frequently Asked Questions:
Token Distribution Pricing Models FAQ
We strive to make our token distribution pricing models available, transparent, and fair for all participants in the [Token Name] ecosystem. Below are the frequently asked questions about our pricing models.
Q: What are the different token distribution pricing models?
A: Our token distribution pricing models vary based on the type of transaction (batch, batch with verification, or auction-based). We use a combination of market forces, supply and demand, and liquidity to determine the optimal price for our tokens.
Q: What is the differences between batch and auction-based pricing models?
A: Batch pricing models charge a fee for every batch of tokens that is submitted to our platform. Auction-based pricing models charge a bid for every token submitted, with the winner being the highest bidder.
Q: How do market forces influence token distribution pricing?
A: Our pricing models take into account market forces such as supply and demand. When the number of requests for a particular token exceeds its market availability, the fee will increase to incentivize participants to submit more requests.
Q: Is the fee tiered across different types of transactions?
A: Yes, the fee tier across different types of transactions is based on the volume of transactions. Batch transactions have a standard fee of [X]%, where [X]% is negotiated beforehand with our partners to ensure liquidity. The other two pricing models have a dynamic fee tier of [X]% and [X]% respectively.
Q: Are there any rebates or discountations for strategic trading?
A: Currently, there are no rebates or discountations provided for strategic trading. However, we reserve the right to modify or cancel such programs at any time without prior notice.
Q: Are there any restrictions on purchasing tokens?
A: We respect the sovereignty of our users. The price established through our pricing models at any point in time is final. We do not support long-term holding tokens at lower prices than they are available at. Also, some activities requiring permission or special approvals may require users to keep their tokens available as collateral instead of selling them.
Q: Will token prices be monitored and moderated?
A: Yes, our team continuously monitors and moderates market data and participates in discussions to ensure that market forces follow their best interests. User intervention may be implemented to allow token volume, liquidity, and the buy/sell behavior to be actively monitored.
Q: Can I cancel or modify my transaction after approval?
A: Yes, your transaction will be automatically cancelled at the scheduled time if all conditions are fulfilled. You will receive a confirmation that your transaction has been cancelled and you can revise your transaction mid-transmission under certain conditions.
Q: How does user influence affect token prices?
A: User influence refers to any action performed by users that can impact the token price. Examples include opting-in to certain liquidity provision and selling tokens at higher prices on market exchanges. Our algorithm will take all user transactions into account when determining the optimal price.
Q: Do token prices go up with more token distribution?
A: Once settled, our tokens will have an expected rate on being traded.
Q: How much information are you providing for the price of token to be determined?
A: Our pricing models use extensive amounts of market data, but at the time of your transaction.
Q: Is token-based revenue stream revenue of a fee on new users that act at a later stage before distributing the token to the network at a premium
A: N/A. We do use some token prices to create and give liquidity to more participants and ultimately grow a strong ecosystem.
