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.
The income generated by selling freshly minted coins to the market will be added into and managed through Rising Coin Treasury. As Rising Coin’s production price is set with respect to USD, we plan to pair RC with stable USD coins first and add different pairs due to demand. RCT will hold any coin RC is paired with.
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, 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 initially. RCT will be community-managed in a decentralized model, so these can be changed by voting.
During the project lifecycle, it will be crucial to create good trading conditions, especially in the early days. Any RCT fund that is not spent elsewhere will be assigned to liquidity pools in an automated way; a matching amount of RC with the cryptocurrency entering RCT will be minted and added to the liquidity pool within the same transaction.
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.
A small percentage of RCT funds will be spent on expenses related with development of the project, like coding, advisers, legal fees, taxes, etc.
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. As RC part of RCT funds are awarded to liquidity providers, the other side of the pairs in RCT (USDT, USDC, ETH, etc) will be directed into marketing activities.