Difference from Ponzi Scheme
Last updated
Last updated
Ponzi scheme has a structure that distributes and pays the investment of late investors to early investors without a clear profit model, so late investors must endlessly participate in to maintain the structure. It has obvious fraudulent elements, such as not disclosing most information including investment management status, telling lies to investors, and allowing excessive profits to go to only a few upper line players. However, the tokenomics structure of the Zombie Network is completely different from Ponzi scheme.
All transactions in the Zombie Network are based on Smart Contract on the blockchain. All transaction information is transparently disclosed, it is impossible to do forgery and alteration, and anyone can easily check transaction information on the blockchain. The program automatically performs deposits, tax pool, interest and reward payments, etc. using Smart Contract, and neither the operator nor the participants can change the contract contents.
Although the Zombie Network operates a referral reward system, this is to revitalize the community and network, not for the purpose of providing profits to investors like the general Ponzi scheme. The profits of upper line participants are not necessarily generated only when there are lower line participants. In other words, although you use this service without any lower line, you can earn 1% of the daily profit based on the deposit as stipulated in the Smart Contract of this project and maximize your profit through redeposits (Compound).
We operate a rotating system reward method (Round Robin method) of 15-step upper lines, so the participants do not receive more reward as they go up to the upper line. The rotating system is applied up to 15th step upper line and the reward is given to only one upper line. Thus, we removed the side effect that rewards are given only to some upper lines, and designed our system so that everyone, including new participants, can fairly receive the referral rewards. This part is also different from the usual Ponzi scheme.