Dogecoin was originally created as a joke. However, it has since grown to attract billions of dollars in US and the attention of Elon Musk. A lot of other crypto projects are inspired by Dogecoin’s logo featuring a Shiba Inu dog. The most recent example is Cliff, although it hasn’t been designed as a purposeful parody. Cliff has an image of a dog and is trying to provide investors with large returns through a deflationary approach.
Cliff: What is it and how does it work?
Cliff is the token that has a real burn function. This allows for instant and direct price increases by burning the circulating supply. Cliff is able to eliminate excess liquidity by using the burning mechanism. Each time the event occurs, it pushes each token’s price up by a percentage. Besides this, the token’s value also increases as Cliff has exposure to yield-bearing assets with the goal to provide value to token holders.
Cliff thus seeks to function as a hedge-fund token and grows continuously thanks to two key mechanisms: investing in yield-bearing assets and burning a proportion of the circulating stock.
The burn function is explained below:
- Each trade placed on Uniswap, or any other DEX, incurs a liquidity charge. Currently, the tax is set at 5% for buys, and 8% for sells but it’s subject to change based on the market conditions. Once a specified threshold is reached, the smart contracts releases any fees accumulated and injects them into the liquidity.
- The contract removes a portion of the supply from the market and then sends it to the address. The process works in a similar way to stock buybacks. Companies purchase stock from secondary markets to decrease the share supply.
- As a consequence, every token immediately gains in value upon the burn.
Cliff has access to assets that could increase in value as a result of investing. Every trade is subject to a liquidity pool tax of 6% on buys and 7% for sells. This tax can be used both as a marketing tool as well as as for yield-generating investments. Cliff currently has investments in stablecoins, which are used to stake, land assets and other non-fungible tokens. The ecosystem members will eventually get the wealth generated.
Cliff Features
To encourage bullish trends, Cliff token uses a hyperdeflationary model. Here are the token’s main features that you should know about:
- True burns predetermined and set up automatically – one of its unique features is the code that is programmed to unpeg a small percentage of tokens from the pool and burn it on a regular basis, creating a higher price floor over time.
- Oversaturated liquidity can cause manual burns – the manual burn is used by the Cliff team to unpeg the excess liquidity, thus pushing the token price higher immediately after the burn.
- A stable liquidity pool – unlike other liquidity pools, Cliff holders are not required to stake their tokens. To ensure Cliff’s stability over the long-term, each trade is subject to a tax. This goes to the liquidity pool address.
- Anti whale – During the launch phase, the maximum amount a wallet could hold was .1% of the total supply, ensuring a well-distributed supply across the holders.
- Marketing incentives – a marketing tax is applicable on each buy and sell to ensure the team has enough funds for the marketing campaigns as well as to invest and donate to charities.
- Security – the security of the Cliff token is based on the Ethereum architecture itself. CERTIK has audited the smart contract. This is an internationally recognized platform that monitors and audits blockchain projects and decentralized financing (DeFi). Programming the code ensures that no initial burnt liquidity is ever pulled and any additional liquidity tokens created will be sent to an address of death.
Cliff is a gateway to RED
Cliff has an opportunity to expose to another token, which will soon be part of the ecosystem. It’s called RED. This token will serve as a governance- and yield-bearing asset.
Cliff investors will have a great asset in RED. The only way to get it is to stake Cliff. RED holders will have the ability to vote and submit ideas for investment proposals by the team. RED can also be used to earn yield from invested assets.
Two tokens that provide value will fuel the ecosystem.
Image: Pixabay