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October 5, 2022
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Altcoin

Safemoon V2 – Did You Know?

Considered one of the most successful tokens, launched in 2021, Safemoon now has two versions. The old one, called Safemon [OLD] and a new version, called Safemoon V2.

New Safemoon Protocol brings News and Differentials to Safemoon Army.

The SafeMoon Token was launched in March 2021, with a great job of marketing and a lot of hope to make new millionaires, the so-called Safemoon Army was soon formed. Featuring a starting price of $0.0000000010 and a total supply of 777 trillion tokens. In short, SafeMoon had a huge inventory and a ridiculously low price. Someone who had purchased just $100 of SafeMoon at the time of launch would have an initial reserve of over 1 million tokens.

What is the Safemoon Protocol?

according to White Paper, the SafeMoon protocol aims to solve past cryptocurrency issues, including mining rewards and liquidity provisioning. Mining equipment can be expensive and harmful to the environment, but mining remains interesting because of the opportunities it offers.

As an easy alternative to mining rewards, they propose to allow users to
participate in a “chain reflection” of tokens from smart contracts, generating new tokens within their own wallets. Another challenge remains to facilitate and maintain liquidity in decentralized pools. By nature, decentralized exchanges require liquidity for the user to have a stake, so the responsibility for providing it lies with the developers. Historically, developers have created incentives for users to provide liquidity, which can be outweighed by risk, due to the subjectivity of impermanent loss.

As a solution, they propose the use of a smart contract function to automatically capture the liquidity to be used in the decentralized exchanges, keeping them in custody regardless of the user’s possession. Furthermore, a smart contract that provides the ability to write tokens can promote their scarcity, reducing the total supply. Together, the combination of so-called “tokenomics” can provide benefits to the ecosystem as a whole within this decentralized environment. Allow these functions to be amplified and dependent on
volume also provides an ideal incentive to accelerate adoption and drive new coin/token use cases.

And what is the real need for a new version?

Improved security and accessibility:

Whenever someone makes a Safemoon transaction, they are charged a 10% transaction fee.
5% of this fee is shared among all Safemoon holders, and is called “reflection”.
The other 5% goes to liquidity pools that help people buy and sell Safemoon on decentralized exchanges. Many Safemoon investors praised this feature. But, some networks lack the structure to allow Safemoon holders to get their share of the “reflection”. The Safemoon Protocol V2 hopes to make it easier for Safemoon holders to get their share of reflection.

Increase in token value:

Another important feature of Safemoon V2 is the introduction of a 1000:1 consolidation of tokens.

In cryptography, consolidation happens when a project decides to increase the value of its tokens.

Imagine 1 Safemoon = $1. To buy 5,000 tokens, you would need $5,000. Given the coin’s structure, that doesn’t make it that valuable. That’s where consolidation comes in.

To increase its value, Safemoon developers are introducing a 1000:1 consolidation. This means that every 1000 Safemoon you had before in v1 will now count as 1 Safemoon in v2.

If you had 5,000 Safemoon before, just divide 5,000 by 1,000. That means you now have 5 Safemoon V2, worth $5,000. In this case, the consolidation will increase the value from 1 Safemoon to $1,000. It changes the number of tokens you have without changing their actual value.

In general, your money will not go up or down. The only change will be in the number of tokens you have.

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Old Safemoon Protocol
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New Safemoon V2 Protocol

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