Deflationary Token

In general, many DeFi services are based on an inflation model that continuously issues new tokens for the payment of interest. Namely, it is a method to issue more tokens to provide a higher APR. The Zombie Network operates a unique tax system imposed on all transactions related to BLOOD tokens. The tax imposed in this way is collected in the tax pool. The daily interest of 1% and recommender rewards that must be paid to investors are first given with the money collected in the tax pool.

It is designed to issue and pay new BLOOD tokens only when the money in the tax pool is exhausted and it is not enough to provide BLOOD token interest payments and recommender rewards. The tax pool that the Zombie Network operates acts as a kind of reserve for payments, and the reserve ratio can reach maximum 85%. It means that the probability of issuing new BLOOD tokens to pay interest or rewards is extremely low. Likewise, the Zombie Network is designed to stabilize the token price by minimizing the issuance of new tokens for interest payment and protecting against token inflation.

The participants of Zombie Network receive 1% of interest per day and can earn up to 365% of their investment by depositing BLOOD tokens. However, it is designed with a unique structure that the deposits are locked in the Zombie Network’s smart contract and the investors cannot directly withdraw them. The total issuance of BLOOD tokens on the Zombie Network is 1 million, which is a very small number. In addition, when an investor deposits a token after purchasing it, it is locked in the contract, so the amount of BLOOD tokens distributing in the market is gradually reduced. In short, the distribution amount decreases while the price rises, thus, BLOOD tokens have the characteristics of a typical deflationary token.

The participants of the Zombie Network have to stay in the network for at least 4 months to get high return, so they naturally make long-term investments. Since tax is imposed on the BLOOD tokens sold after withdrawal, we induce to avoid selling them only when necessary without reckless selling. The timing of investments and withdrawals of participants is dispersed due to this investment method, and the market influence of some participants, especially those with a large amount of volume, is reduced, so the sudden volatility of the token price inevitably decreases.

As such, the Zombie Network has several elements that protect the drop of the token price as much as possible through the design of the smart contract and is designed to gradually decrease the distribution amount. Thus, we can say that it is a new concept DeFI service with low risk and high return to which a typical deflationary tokenomics that has enough energy of price rise is applied. The Zombie Network is a service that guarantees token return and can maintain a relatively stable token price. It is also a service suitable for investors who prefer long-term investments rather than short-term investors who trade frequently depending on market conditions.