Income and Spending
When market price moves higher than the production cost, new coins must be minted and sold to the market. This will be managed with a smart contract which anyone can call and get rewarded for calling it. This event will create income for the project.
Rising Coin Treasury (RCT)
The income generated by selling freshly minted coins to the market will be added into and managed through Rising Coin Treasury. RCT will have separate wallets assigned for each purpose but for simplicity we will refer to them as RCT. As Rising Coin’s production price is set with respect to USD, it will be more logical and efficient to pair RC with stable USD coins first and add different pairs due to demand. RCT will hold RC and any coin RC is paired with, most probably stable USD coins.
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On Uniswap v1, even though traders can create pairs and swap any crypto to any crypto, ETH is always used as the intermediary between pairs. On Uniswap v1, ETH would be the only coin in RCT. On Uniswap v2, PancakeSwap or QuickSwap, any pair can be created and no intermediary like ETH is used. Therefore, RCT will hold cryptocurrencies from all pairs RC is paired with and production cost is adjusted against. |
The following are where RCT funds will be directed automatically, as income occurs. RCT will be community-managed in a decentralized model, so the wallets and percentages may be changed by voting in the future.
Liquidity Pool
During the project lifecycle, it will be crucial to create good trading conditions, especially in the early days. It must be considered that Rising Coin is a project which lives together with an exchange, so the liquidity pool is an inseparable part of the project. Therefore the largest portion of RCT will be directed to the liquidity pool.
Whenever income occurs, a matching amount of RC sold for the income will be minted and added to RCT wallets. The portion of RCT spared for liquidity will also be added to the pool within the same transaction.
Liquidity Reward Program
To incentivize the community to provide liquidity, a Liquidity Reward Program will be established. Instead of sitting in the liquidity pool, the RC in RCT funds will be used as rewards for the liquidity providers. With time, RCT’s portion of the liquidity pool will decrease while the community’s portion will increase. This will enable a decentralized liquidity pool and remove any concerns about rug-pulls while rewarding long term coin holders and liquidity providers.
Development
A small percentage of RCT funds will be spent on expenses related with development of the project, like coding, advisers, legal fees, taxes, etc.
Marketing
During the lifecycle of the project, marketing will be the major expenditure. To recruit more investors for years to come, a continuous amount will be spent on marketing. We expect the project to be viral at some point. Even after that, a high amount of funds will be spent on marketing to ensure continuous public awareness.