Zoocoin protocol is an innovative and decentralized financial protocol deployed on the Binance Smart Chain. Where the need is, they can also buy assetized cryptocurrency packages tethered to different valuable portfolios on the broader altcoin market. The platform integrates mainstream and innovative Decentralized Finance products and cutting-edge Non-Fungible Tokens mechanisms. Not just that, you are going to find excellent implementations across DEX, Oracle, Swap Lending, insurance, and much more.
Four primary features make up the Zoocoin protocol ecosystem. Zooter – a decentralized Twitter-like platform for users to like/dislike posts through burning Ζoocoin (Ζ00). Zooswap allows users to swap from one token to another using Pancake swap, and there is ZooNFT.
At the heart of the ecosystem is a transparent and on-chain mechanism for boosting the liquidity of the native token and a repurchase profits system for rewarding users. Zoocoin Protocol implements the static reward system, ensuring its most loyal investors get more profit based on their token holdings.
This system also ensures the amount of rewards is proportional to the volume of the associated trade. To support your understanding of the platform’s basic economics, let’s first discuss the functionalities of Zoocoin Protocol’s native token, Zoocoin.
Functions of Zoocoin
Like most Defi ecosystems, Zoocoin Protocol has a native wallet. Any transactions taking place within the Zoo Wallet are charged fees. These fees are paid in ZooCoin.
Any service rendered to users, investors, or adopters of the platform’s token is discounted in Zoocoin.
The Zoo Passport System
Zoocoin’s developers have also incorporated a ZPass application into the platform’s ecosystem. Zpass is an NFT token that shares the dividend of Zootopia DeFi yield earnings. The ZPass has an upgrading mechanism where ZOO holders can purchase a pass then move up the system’s levels through invites — there are seven levels.
This system allows the Zoocoin community to receive value-added services and buy NFT blind boxes using ZOO to gain rare NFT entries — depending on their ZPass level.
Zoocoin Protocol has deployed its governance infrastructure on the structural protocols of the Decentralized Autonomous Organization (DAO). A mechanism that automates distributes, and decentralizes decision-making. These decisions are made through asset voting, and one’s vote is validated based on the amount of Zoo tokens they hold.
Repurchasing transaction fees
When a transaction takes place, a charge of 10% is imposed as a fee. 5% of this fee is redistributed to existing token holders based on their percentage stake on the Zoocoin token. The rest of the half is split by half. One half is exchanged for Binance Coin (BNB), and the other half is used for repurchasing the BNB and adding liquidity to the platform through a Pancake Swap.
How repurchasing of transaction fees takes place on Zoocoin Protocol.
The development team behind Zoocoin Protocol wanted to create a Decentralized Finance platform without the inherent challenges of fluctuations that face the average token. Their main idea was to eliminate downward selling pressure that usually has a bearish effect on the price of the token.
Hence, even if Zoocoin’s early adopters were going to rake in millions of the tokens – selling the token without opening long-term positions would only result in loss. Therefore, they implemented a reward system based on imposing penalties on transactions when one sells their positions. This would prevent day trading and encourage token holders to hold on to the coin as a long-term investment.
The team went ahead to implement a manual burn strategy based on the economies of demand and supply. This manual burn will provide occasional checks on the supply of Zoocoin to ensure scarcity and, at the same time, high demand. Which subsequently drives the price high.
To make this possible, the platform employs the following tri-functional system:
Reflection + LP acquisition + Burn-In each trade
LP stands for liquidity pool acquisition which will support Zoocoin’s stability to prevent price fluctuations in the long term. An increase in the amount held in the LP will lead to a proportional increase in the strength of the token’s price floor.
The Zoocoin team has burnt the LP tokens for permanent lock-in. There are no chances of rug pull. Zoocoin can be bought in PancakeSwap here. You can buy ZPass here