What is the definition of a reward token?
A reward token encourages users by rewarding them for completing specific tasks. HODL is the most common example of this type of task, in which users are rewarded for just holding tokens. The way it works is that a fee equal to a percentage of the tokens transferred is collected for each transaction.
After that, the tokens are utilised to distribute dividends to current holders. Your token or another popular cryptocurrency, such as BUSD or DOGE, can be used as rewards.
What are the many types of reward tokens available?
Reflection tokens are the most commonly created reward tokens. In this mechanism, u Users gain more of your tokens over time just by HODLing the tokens. This is well-liked for a variety of reasons. To begin with, it is incredibly efficient since it uses a technique known as reflection. Reflection does not require explicit distribution of reward tokens to keep things simple; instead, it adjusts the user’s balance based on their current holdings, which saves a lot of transaction gas. Furthermore, because you are distributing your own tokens, you eliminate the need to sell tokens in order to obtain BUSD or other tokens, which could cause your token’s value to drop.
Another type of reward token known as “baby” tokens, such as babyDOGE or babyBUSD, has recently acquired popularity. These tokens pay out in DOGE or BUSD to their owners. While they use more gas and require token exchanges to buy BUSD/DOGE, investors find them quite enticing.
How do you go about putting one together?
Programming them yourself is one method for making such a token. Reflection and baby reward tokens are both intricate. A large investment is necessary to understand blockchain programming, create, and test such coins. Even after that, bugs in your token are likely to exist, allowing for possible hacker exploitation.
However, using the fantastic no-code platform Unicarve, there is now a far easier way. Unicarve’s BEP20 token creation allows you to produce BEP20 tokens with modern tokenomics features like BUSD or other token rewards, liquidity generation, marketing and charity wallets, and hyper-deflationary buyback. It not only allows you to create tokens on the Binance Smart Chain utilising modern controls, but it’s also extremely easy to use and one of the most cost-effective token generation platforms accessible. Visit https://unicarve.app today to know more.