One of the promising trends currently in the space is providing rug-proof security. Rug-pulls remain a pressing problem, wherein anyone who creates a token can decide to pack up their liquidity and leave everyone else holding worthless tokens. That practice occurs more than some may think, as dozens of tokens come and go across decentralized trading platforms every day.
The best way for developers to ensure no rug-pulls is to commit liquidity for a longer period. Locked liquidity ensures there will always be enough volume to support trades, rather than seeing everything disappear overnight. However, it does not prevent volatile price swings. Projects like UltraSafe introduce an automatic partial fee distribution to the liquidity pool which continually increases the price floor. As such, every time someone sells, the price impact will lessen.
Furthermore, Ultrasafe sets an interesting tokenomics example by introducing an 8% transaction fee. That in itself is not too remarkable, yet half of the fee goes to the liquidity pool for the price floor. The remaining half is reflected to holders of the native token, creating an incentive to hold the token over time. Thus, continually seeing one’s balance go up can prove worthwhile to many traders and enthusiasts globally.
UltraSafe positions itself as a frictionless yield protocol where users can earn passive income and benefit from value appreciation. Thanks to this solid community-oriented focus, the team also aligns its development progress with the growth of the overall community. More token holders will help develop new features and services, creating an extra incentive for holders to talk about UltraSafe with their friends and family.
Furthermore, linking community growth to the development roadmap is another form of user empowerment. Projects need to incentivize users to look for long-term opportunities rather than buying into a token and flipping it for profit the same day. Creating sustainable decentralized finance initiatives will elevate this industry’s appeal to a new level and pave the way for broader adoption.
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Source: Cryptocurrency - investing.com
