Math

Minting and Buyback Mechanism

• Every time new Moome tokens are minted, the system automatically buys back a portion of Moome tokens from the public pool.

• In a bearish market, where token prices drop and demand slows, the system acts conservatively. No new Moome tokens are issued. Instead, the system directs all user transactions to the buyback pool, which utilizes existing tokens instead of creating new ones. This approach prevents oversupply during low-demand periods, helping stabilize the price and support the ecosystem.

• This mechanism increases the SUI liquidity in the buyback pool, enhancing the pool's ability to support the market price of Moome.

Dynamic Staking Pool

• As the system grows, the staking pool value increases with each new collateral addition. This increases the value backing each Moome token, enhancing its perceived and actual worth.

Market Integration with DeX Pools

• Moome's smart contract algorithm checks liquidity pools for pricing during each minting transaction.

• It ensures that the system aligns with current market prices in DeX pools, preventing price manipulation and maintaining healthy market conditions.

No Pre-Minted Tokens or Team Allocation

• Moome starts with no pre-minted tokens for developers or marketing pools, making its price entirely community-driven.

• This prevents early sell-offs or dumps by project insiders, ensuring fair market dynamics.

Fee Collection for Market Activities

• The smart contract collects a 1% fee on every minting and burning transaction.

• These fees are not held by the team but are reserved for:

  • Marketing initiatives to increase visibility and adoption.

  • Adding liquidity to Moome pools, which can stabilize and potentially increase its price.

  • Other strategic activities to benefit the community, such as purchasing assets to enhance the ecosystem.

These mechanisms create a balance between supply and demand growth, which are essential for supporting long-term price increases in Moome. However, as with any crypto project, market conditions and community adoption ultimately determine the actual price trajectory.