CW20 Reflection Token
Last updated
Last updated
It is a CW20 compliant token, which means DAPPs and CEX can easily use the token standard like a normal CW20 token
The key innovation is to allow a CW20 token to apply taxes. Weโve not seen a proper taxed CW20 in all of Cosmos chains
To have a โreflectionโ token means that the taxes wil be used to automatically complete a few tasks:
Automatically buy and burn a parent token of choice
Automatically buy and acquire more liquidity for the current reflection token to build deeper liquidity over time to create price floors
Automatically buy parent token to be reflected/redistributed to reflection token holders.
Essentially, the CW20-Reflection standard is a modified CW20 standard that can uniquely function in 2 ways:
As a pure taxed token: Users are taxed per token transfer, where the taxed portion is burnt. OR, the taxed portion goes towards a treasury contract that can be withdrawn. This opens up interesting use cases for developers who wish to create โtax-on-transferโ tokens where taxes can be used for their tokenomics.
As a reflection token: Taxes are used to buy a target token via the DojoSwap DEX. These tokens are to be distributed back to the reflection token holders.
All the above functionalities can be mixed and matched flexibly to create your own unique implementation for your unique project. All parameters can be tweaked, such as the tax rates, target token to purchase, etc. The net effect of such a token is to promote the creation of an entire class of new financial derivatives. As we rapidly approach the beginnings of a new bull market, we are highly certain of the potential demand for these financial primitives. By laying the foundations together with the Injective team, in anticipations of renewed interest from the crowd โ Dojoswap aims to become the trendsetters, where we attract the developers, we attract the users.
The standard was built to be compatible with the CW20 standard, allowing it to be used on AMMs Dexes
Taxes are applied on transfers. We have the ability to whitelist addresses to prevent taxes on whitelisted addresses
The CW20-Reflection token can also be wrapped into a bank version. This effectively removes the transfer taxes, allowing it to be used on order book DEXes such as Helix. This also opens up the possibility of the token being listed on CEXes if required.
