Smart Contracts

To implement Rising Coin, the following smart contracts will be deployed:

Adjuster

Adjuster is a smart contract that executes the following functions:

  • Calculates the target production cost, i.e. the top price for the day, mints and sells the right amount of coins to bring the price back to production cost.

  • Depending on the funds generated by the first step, mints the matching amount of RC and sends RC and the paired coin to the liquidity pool on Uniswap.

  • Sends a reward to the wallet address which called it.

Below is an example Adjuster operation on RC-USDT pool. All numbers are dependent on size of the liquidity pool; they are rounded to make the example simpler.

  1. Assume daily set production cost is $2 and market price is a little lower than that.

  2. A trader buys enough RC to push RC-USDT price to 2.2.

  3. A community member realizes the opportunity and runs Adjuster.

  4. Taking into account factors such as market price and current pool size, Adjuster calculates that it has to mint and sell 500 RC to bring the price back to $2.

  5. Adjuster mints 500 RC and sells on Uniswap. From this operation 1,000 USDT is generated and added to RCT.

    At this point the market price is adjusted to match production cost and is now back to 2 USDT. Rest of the operation is to assign RCT funds into liquidity pool and reward the wallet which called Adjuster.

  6. Adjuster spares %10 of the funds, i.e. 100 USDT as reward to the wallet which called itself and spares 900 USDT to RCT.

  7. Adjuster mints another 450 RC and adds 450 RC and 900 USDT to the pool; liquidity of the pool increases.

  8. As the final step of the transaction, Adjuster sends the reward funds to the wallet which called itself, to compensate the community member who initiated the price adjustment.

Adjuster can be called by anyone and the caller will be rewarded high enough to make it worth to pay the gas price to call it. As the reward is a function of the size of the adjustment, the higher the market price is, compared to the production cost, the higher the reward will be. In other words, the further from production cost the market price moves, the higher the incentive will be to bring it back to production cost.

Adjuster should be called only when the market price is higher than the daily production cost, otherwise it will exit after calculating that it doesn’t need to run, and a minimal gas fee corresponding to this calculation will be wasted.

Marketeer

Marketeer is the smart contract which will manage allocation and spending of RCT funds into marketing activities.

After good trading conditions are met, the funds accumulated in RCT will be spent for marketing of the project. The marketing material and the medium to display them will be supplied by the community. The voting process to pick the right ads for the right medium and the expenditure will be controlled by Marketeer. This way we will make sure that the marketing of the project continues forever, independent from any centralised player, including the project team.

Target of the project is to minimize and eventually remove project team’s intervention at every point of the process. Even the community’s intervention such as voting and submission of new ad and video materials will become optional rather than necessary.

An example might be helpful to imagine the process:

  1. Let’s assume that at a certain date, RCT has marketing funds worth 200,000 USD.

  2. Volunteers from the community prepare and submit ads in various forms such as banners, full pages and videos to Marketeer.

  3. Data about how much lead each medium generated is shared with the community.

  4. Marketeer holds a community vote to ask which ad should be used on which media and what percentage of the funds should be allocated to it.

  5. Let’s assume results of the vote turn out to be: Google AdSense 20%, YouTube 30%, Facebook 15%, Instagram 35%.

  6. Marketeer calculates that it needs to keep advertising for 10 months, removes funds from the liquidity pool, exchanges them into 20,000 USD for the first month and sends respective percentages to each medium.

  7. Efficiency of ads are read through oracles, fed to Marketeer, reported to the community and the cycle repeats.

Marketeer smart contract will be deployed as phase 2, after project reaches good trading conditions, i.e. reasonable liquidity on Uniswap.