UniBot's native token, $UNIBOT, plays a crucial role in integrating the platform into the DeFi ecosystem. Holding $UNIBOT opens up a world of benefits, including governance rights, attractive yield farming rewards, and discounts on protocol fees. One of the standout features is the revenue share model, where token holders can receive periodic payouts calculated every two hours. To qualify for these earnings a minimum of 50 $UNIBOT tokens must be held and transferring over 200 tokens within a two-hour interval would result in forfeiting the revenue share.
In June 2023, UniBot made significant updates to its tokenomics following a proposal raised by its community. These upgrades serve two key purposes: removing the auto-burn mechanism and deepening the liquidity pool. The auto-burn mechanism, which regularly burned $UNIBOT tokens within the Uniswap V2 pool at a slow rate, was hindering the liquidity growth by discouraging users from adding to the pool. The decision to remove this auto-burn became a top priority for the new contract.
By eliminating the auto-burn, UniBot achieved several benefits. The liquidity pool can now grow without limitations, allowing investors to trade with size and attracting additional liquidity providers. Additionally, tokens that would have been burned are now available for other purposes, such as buybacks and liquidity provider incentives for example.
The second decision, driven by the community, was to revive the tokens previously destroyed by the auto-burn and use them to deepen the liquidity. This strategic move promises to attract larger trade volumes, ultimately leading to increased protocol revenue that flows back to the token holders.
UniBot's tokenomics overhaul showcases a strong commitment to sustainability and long-term growth. The platform has effectively addressed the concerns raised by its community and implemented measures that benefit both liquidity providers and token holders. With these enhancements, $UNIBOT has been made to become an even more attractive and rewarding asset within the DeFi spectrum. Show Less
