Income and Spending
When the market price is higher than the production cost, i.e. the highest targeted price for the day, a reward condition is created so that someone will run the smart contract which will mint and sell coins to the market. This event will create income for the project.
The income generated by selling freshly minted coins to the market will be added into and managed through Rising Coin Treasury. Due to Uniswap’s pairing mechanism, RCT will hold only ETH apart from RC.
|On Uniswap, traders can swap any crypto to any crypto and ETH is used as the intermediary. For example, a trader can opt to exchange USDT to RC. On Uniswap this is equivalent to a conversion of USDT to ETH to RC. As the final transaction always happens in ETH-RC pool, only ETH can enter RCT, not USDT or any other cryptocurrency.|
RCT funds will be spent on the following items:
A small percent of RCT funds will be spent on expenses related with development of the project, like coding, advisers, legal fees and taxes. In the early phases of the project, %20 of RCT will be directed to development efforts.
In the early days of the project, it is crucial to create good trading conditions, so a high percentage of RCT funds will be used to provide liquidity. In the early phases, %80 of RCT will be directed to the Uniswap liquidity pool. In order to provide liquidity, matching amount of RC with the Ether in RCT will be minted and added to the liquidity pool within the same transaction.
When good trading conditions are established, with more investors providing liquidity, RCT may not need to provide liquidity. When we reach this phase, the funds sitting in Uniswap liquidity pool may be removed and returned to RCT. The ETH that returned to RCT will be directed to marketing activities and the RC returned to RCT will either be spent on marketing activities like airdrops or be burned.
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, all the income left after development costs will be spent on marketing to ensure continuous public awareness.
Once good trading conditions are created, RCT funds will be shifted from liquidity pool to marketing activities. In the long run, we plan to stop adding funds into the liquidity pool and spend %80 of RCT funds on marketing.