The Biggest Problems Challenging DeFi, and How we’re Solving It.

The economic narrative of the year has revolved around one concept: inflation. Minute by minute, hard-earned savings laying in banks accounts are steadily losing value. This issue was exacerbated during the covid-19 pandemic as governments printed more money to save many businesses and individuals from bankruptcy. This problem of inflation seems insurmountable, but first why is inflation such an issue.

Inflation

Inflation, from a monetary perspective, is where the circulating supply increases. This is often paired with increasing prices and a reduced purchasing power..

Inflation in Blockchain

Inflation in blockchain is how a decentralized economy incentivizes it’s users, community, and participants. Everything from staking in Blockchain’s, to rewarding liquidity in Decentralized Finance (DeFi) is created through inflation.

Almost every Blockchain or DeFi platform, releases a native token into circulation. This use of inflation enables the following :

· Incentivizing Blockchain use cases (e.g. consensus, block-rewards, staking). Network participants receive newly released tokens (e.g. BTC).

· DeFi : Most DeFi features use some form of a token, which is issued as a liquidity reward to those supporting it’s decentralization.

· Participation : Many DApps and DeFi platforms further incentivize user’s to participate by allocating rewards to the community.

Major flaw of today’s DeFi

However, the Blockchains and DeFi of today often create hyperinflation:

A new protocol or platform will set a high reward-rate to attract early users and liquidity. This early period of low-demand, coupled with a high inflation rate, creates a hyperinflationary model — where most tokens die.

A period of a bearish market, or decline in demand. As the inflation rate remains the same.

Hyperinflation creates volatility & harm in growth

The MoonKat model

Moonkat is programmed to reward holders while increasing in both liquidity and value, it does this by applying a 5% tax per transaction (buy/sell/transfer)

5% Tax breakdown

Earn BNB

3% of every transaction is taken and re-distributed to all OUR TOKEN holders in $BNB. You collect BNB weekly by accessing the OUR dashboard page. We incentify our token holders without releasing more of our native token into circulation.

Automatic Liquidity Pool.

2% of every transaction contributes toward automatically generating further liquidity on Pancake Swap. Benefiting long term for OUR TOKEN holders the most.The initial liquidity is locked away forever. For the auto-added liquidity by our smart contract, we burn the LP Tokens (think “ticket to liquidity pool”) regularly so that it’s technically impossible to remove liquidity at any time.

We believe that together we can build the future of DeFi one Moonkat ➡️BNB reward at a time.

Till next time, Happy Mooning 🐈🐈

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