Legend of Galaxy is the first-ever blockchain game to employ the innovative idea of passive reward model for the GAE token holders. By simply holding GAE, you will share a great dividend of 50% value of every trading tax. The longer you hold GAE tokens, the bigger amount of dividend you get. Another 50% of the trading tax is utilized to add to a liquidity pool and for the burning and buyback.
Together with the unique Fair Launch distribution of Legend of Galaxy, this deflationary token mechanism is the unrivaled solution to handle the inflation, sustain the liquidity pool, and provide long-term development and stable benefits for the holders in the long haul.
How does it work?
To incentivize GAE token holders, every selling transaction made with the GAE token will be charged a slight tax of 8% on the transaction value. For example, if somebody is making a selling transaction of 1,000 GAE, they will pay 80 GAE as a transaction fee. The 8% fee is a critical element of LoG’s deflationary mechanism. This fee will be used for three aims: Passive reward to GAE holders, automatic liquidity pool and burning.
Passive reward to GAE Holders
GAE holders will share passive income as half of the selling transaction fee, particularly 4% of the total value of a transaction. The amount of passive reward is proportional to the amount of GAE they’re holding.
Automatic Liquidity Pool
After 4% is distributed to GAE holders, another 2.5% of the collected tax fee will be automatically added to the liquidity pool. This not only adds a solid price floor for the token but also sustains a healthy liquidity pool used by the exchange.
The last 1.5% of the collected tax fee will be used to burn and buyback. During the process, reducing the token supply while increasing its value. Therefore, with a limited number of tokens, the more time tokens are in circulation, the fewer and rarer it becomes.
Together with multiple token utilities in-game, play-to-earn incentives, and the NFT 2.0 economy, we believe that this innovative deflationary model can solve the headaches issues of inflation in blockchain game projects, and maximize the benefits for token holders, who are really the true owner of the game economy.