Earlier this week, Y5 Crypto launched their Tokenomics CEX, one of the several revenue generating utilities that will feed back to the holders of their Y5 Wealth Token (Y5WT) through buy back and burn.
What does this mean for current and potential holders of both the Y5 Wealth Token (Y5WT) and the Y5 Trader Token (Y5TT)?
The short answer is (with adoption – see below) increased value and continuous passive income.
To look at this in more depth, we should take a look at both tokens and how they can achieve this.
– A circulating supply of under 6.5 million and only 450,000 left for sale and a current market price of $0.50 per token. Although this means higher volatility in price with the low supply, higher adoption means a sharp increase where value can possibly one day rival BNB.
– The Y5 Blockchain will use the Y5TT in the same fashion as BNB is used on the BSC. Projects launching and listing on the Y5 CEX will be incentivized to provide LP in Y5TT. As more projects fund their LP’s in Y5TT, the supply will dwindle and value will shoot up.
– All revenue generating utilities feed back to the Y5WT through periodic buy back and burn. This includes volume on both its CEX (est. 0.1%-0.3% of volume) and DEX (0.3% of volume), listing fees on the exchanges and launchpad, and volume driven from both Y5TT (0.8%-1% of volume) and Y5WT (4% of volume). Currently, the team is burning, on average 2-3 trillion tokens per month. Approximately 70T tokens are left for sale. As the revenue generating utilities ramp up in volume, the team hopes to achieve a daily buy back and burn value of $100,000. This daily burn would constantly reduce supply increasing token value while increasing your share of BUSD rewards explained below.
– Holding Y5WT means you will be receiving a share of all volume of this token in the form of BUSD. This token was built to be purchased and held, not traded, as it has a 20% tax with 13% going to BUSD rewards. As volume ramps up, so do the rewards. As mentioned in the point above, a daily buy back and burn of $100,000 would produce $180,000 in volume. This in turn would provide a $2.75 in BUSD rewards DAILY from an investment of approximately $1,000 (based on today’s value of the Y5WT). This would mean that you would receive your investment amount, in BUSD, in exactly 1 year. This assumes no other volume takes place (highly unlikely) and does not factor in the increase of your share of rewards with each daily burn.
The above sounds great on paper, but how does it work in real life?
To date, Y5WT holders have been paid just shy of $4 million in just under 8 months of being live. Going forward, it is up to the Y5 Crypto team to ensure their products are well marketed and therefore adopted. In releasing a tokenomics CEX, they are introducing projects that have never stepped foot out of DeFi and into the laps of millions of CEX users who have never seen the concept of “tokenomics”. The future looks extremely bright but adoption will be the key factor in ensuring the projects success.
That goes without saying that there is still work to be done. The Y5 CEX is currently seen as a “barebones” CEX (this was built in 4 months after all). Future enhancements to the CEX will include a more robust platform for traders with various trading options, additional stable coins native to Y5 backed 1:1 with fiat, a Y5 Debit card to spend anywhere Visa/Mastercard is accepted, a Round-Up app which will tie in with Google and Apple pay in order to top up everyday purchases made with crypto, as well as others. The Y5 Blockchain has being early development and is slated to be released within the next 12 months.
More on Y5 Crypto
The Y5 Crypto project launched in January 2022 with their flagship token Y5WT and later their Y5TT in May 2022. Their Tokenomics CEX was in development for the last 4 months and considering the speed they are working at, it is entirely possible that their blockchain will not be too far behind. With their blockchain in place, their ecosystem will be complete thus allowing them to focus solely on enhancements and larger marketing campaigns. Their goal is to make crypto accessible, safer and make the entire crypto environment a better place for the future.
For more on Y5 Crypto, including website, subreddit and telegram links, feel free to DM me.