However, for well-versed cryptocurrency enthusiasts, it’s hard to consider anything on Binance Smart Chain as a DeFi token.
SafeMoon classifies itself as a decentralized finance (DeFi) token. Conversely, smaller holders make pennies each day, and they're incentivized to hold these rewards in hopes of growing their base number of tokens. Since large holders make a significant amount of money each day, they're incentivized to sell their rewards and lock in profits. Since tokens are redistributed proportionally to the amount of SafeMoon token one holds, those with the most tokens earn the most money. More on this can be read in the SafeMoon whitepaper. Unfortunately for SafeMoon holders, this effect is usually negligible, especially after the 5% fee is incurred when selling the tokens. This 5% fee is burned, redistributed and added to the SafeMoon liquidity pool on PancakeSwap. This keeps investors from selling their investment, even if SafeMoon doesn’t provide any real value. To fund this, SafeMoon charges investors a 5% fee to simply sell their tokens. These “static rewards'' increase the amount of SafeMoon investors own based on how long they hold their investment. Terms like “Static Rewards'' are used to hide the token’s resemblance to a pyramid scheme.
If you visit SafeMoon’s website, you’ll be greeted by a plethora of crypto-related buzzwords. It's also 1 of the 1st cryptos to implement redistribution tokenomics, something which has yet to be proven as a viable framework for cryptocurrencies. Most of this attention has been gained from social media platforms, namely Twitter and TikTok. SafeMoon is among the 1st cryptocurrencies on Binance Smart Chain to gain mainstream attention. Leverage Your Investment & Avoid Capital Gains with BlockFi.
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