Where most DeFi tokens rely on fees only to prop up value, GreenMoonZilla does something a little more innovative. The $GRMZilla token is defined as a rebase token, meaning that the total supply in circulation can be modified when necessary. As a result, you have an ecosystem that is both deflationary and inflationary.
At Imveste, we’re always on the lookout for exciting projects to invest in, and this one in particular caught our eye. Let’s see how it works and if it can reach the $1 desired price.
What is a rebase token?
Simply put, a rebase token system involves changing the token supply within the blockchain. Since the goal is to increase the value of $GRMZilla, this initially means gradually reducing the supply.
Because this should be happening while demand for the token is rising simultaneously, it increases the value of the token rapidly. You will also note that the number of $GRMZilla tokens you own will reduce in the process.
However, because the value of each coin is rising, the value of your investment remains stable. The best way to think of the process is like a stock undergoing a stock split – the number of shares increases but value does not change.
On the other hand, supply will be increased in order to avoid the danger of hyperdeflation. In the case of GreenMoonZilla, the goal is to reach a price of $1. Therefore, when prices exceed this target, the supply of $GRMZilla will be increased. Nevertheless, the value of the investment still remains the same.
$GRMZilla is a BEP-20 token on the Binance Smart Chain (BSC) and you can find the contract address here on BscScan. To generate fees for the network, a 15% transaction fee is charged for all transactions. Currently, you can buy the token on PancakeSwap using its contract address and a MetaMask browser extension.
Out of this fee, 4% is used to reward holders using $SHIB and 3% buys more $GRMZilla from the market to increase its value. 3% more is added to the liquidity pool and the final 5% is used for marketing. That is how community engagement is done on Twitter and Telegram.
How do investors benefit from GreenMoonZilla
Given that the network is both inflationary and deflationary, the natural question to ask is how an investor can raise financial performance. One of the best incentives is the rewards sent in the form of $SHIB to encourage holding. At the same time, deflating currency artificially raises price over time. In the price chart below from Poocoin, price of $GRMZilla has been rising ever since the presale launch on PinkSale on 1 August.
The current price on Poocoin is $0.003. Considering the rise since launch, it’s possible to lose at least one 0 by the end of 2021 – a 10x increase. The ultimate goal of reaching $1 can be theoretically reached by 2025, and that is only if the community and attention continue to grow. For now, you can keep track of the price using DEXTools and you won’t miss any critical update right on time.