Snowball Token's performance on the BSC chain continues to attract attention. This project launched by the Flap platform adopts a similar operational concept to the SOL ecosystem Snowball, but has its own unique mechanism design.
From a tokenomics perspective, a 3% transaction tax is applied to both buy and sell transactions. This tax is used for two main purposes: the contract automatically triggers a buyback mechanism, removing some tokens from the market; simultaneously, the bought-back tokens are sent to a black hole address for permanent destruction, reducing circulation from the source. This "transaction and burn" model theoretically supports long-term price stability.
It is worth noting that the automated market maker mechanism ensures continuous liquidity replenishment, keeping trading pairs active at all times. The entire architecture revolves around a deflationary logic—through transaction-driven automatic buybacks and burns, aiming to create an expectation of "more trading leads to greater scarcity."
While such mechanisms are not innovative on BSC, the details of execution often determine the project's lifecycle performance. Token holders need to pay attention to the actual execution of the contract code to ensure that the taxes truly go toward burning tokens rather than other channels.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
8 Likes
Reward
8
4
Repost
Share
Comment
0/400
AlphaBrain
· 4h ago
Is it deflation and buyback again? Can it really support the price? Or does it depend on whether the team runs away or not?
View OriginalReply0
SandwichVictim
· 5h ago
Once again, the old trick of deflationary burning, it's everywhere on BSC...
---
A 3% tax sounds significant, but how much actually flows into the black hole? Have you checked the contract?
---
Projects like Snowball are quite eye-catching in the early stages, but the key is who will take the final baton.
---
Auto buyback sounds great, but in reality, it's just to increase volatility for whales to dump.
---
Continuously adding liquidity? Basically, the more frequent the transactions, the more tax revenue.
---
The contract code needs to be thoroughly examined; avoid those tricks where taxes secretly flow into the operational wallet.
---
I've seen too many projects like this on BSC; they usually don't last more than a month.
---
Transacting while burning sounds good, but can token holders really make money? That's the core issue.
View OriginalReply0
GasGrillMaster
· 5h ago
It's the same old trick of deflationary burning; it's been everywhere on BSC for a long time.
View OriginalReply0
SocialFiQueen
· 5h ago
It's both deflationary and a buyback again. It sounds great, but can it really be destroyed? I still need to see the code to be convinced.
Snowball Token's performance on the BSC chain continues to attract attention. This project launched by the Flap platform adopts a similar operational concept to the SOL ecosystem Snowball, but has its own unique mechanism design.
From a tokenomics perspective, a 3% transaction tax is applied to both buy and sell transactions. This tax is used for two main purposes: the contract automatically triggers a buyback mechanism, removing some tokens from the market; simultaneously, the bought-back tokens are sent to a black hole address for permanent destruction, reducing circulation from the source. This "transaction and burn" model theoretically supports long-term price stability.
It is worth noting that the automated market maker mechanism ensures continuous liquidity replenishment, keeping trading pairs active at all times. The entire architecture revolves around a deflationary logic—through transaction-driven automatic buybacks and burns, aiming to create an expectation of "more trading leads to greater scarcity."
While such mechanisms are not innovative on BSC, the details of execution often determine the project's lifecycle performance. Token holders need to pay attention to the actual execution of the contract code to ensure that the taxes truly go toward burning tokens rather than other channels.