DeFi Problems & Zombie Networks
In many cases, existing DeFi services also offer high returns. However, most of them experience that the token price rises sharply in the early days of service opening, and the price significantly declines not long after. Therefore, although they can provide very high rate of return, there is always a situation where most of the non-initial enterers lose money due to the drop of token price. These DEFI services have resulted in inflation by excessively issuing the token to provide high returns. There are many cases that the initial enterers or a large amount of token holders have caused a sharp change in market prices by selling a token at a time at some point.
The Zombie Network runs several institutional systems that can defend the drop of the token price under the tokenomics structure, and the token has the property of the deflationary token, which gradually decreases the amount of distributed token. In addition, it is designed to reduce the market influence of some participants who hold a large amount of tokens, by making them pay up to 50% of the tax and contribute to the continuous growth of the network through the introduction of the Whale Tax. ([Note] Features of Zombie Network > Deflationary Token)
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