SkyFuel Fees Distribution

Second, the reflecting mechanism encourages holders to hang onto their tokens to accumulate higher kick-backs based upon a percentage carried out and dependant upon the total tokens held by the owner.

LP Acquisition

We have implemented in SkyFuel a function that acts as a two-fold beneficial implementation for holders. First, the contract absorbs buyers' tokens thru the 5% fee and adds them to the LP, creating a solid price floor.

Second, the sellers' 25% fee acts as an arbitrage-resistant mechanism that secures the volume of SkyFuel as a reward for the holders. The goal is to prevent the more significant drops when whales decide to sell their tokens later in the game, keeping the price from fluctuating.

This strategy plans to alleviate some of the troubles we have seen with the current DeFi reflection tokens. We are confident that this model and protocol will prevail over the outdated reflection tokens.

Burns

SkyFuel aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term. We have implemented an auto-burn and also plan to have manual burns if necessary. Furthermore, the total number of SkyFuel burned thru auto-burn can be seen in the total supply, and the SkyFuel manually burned will be featured on our website. This strategy allows for further transparency in identifying the current circulating supply at any given point in time.

Auto-Burns

A continuous burn for any protocol can be excellent in the early days. However, this generally means the burn cannot be finite or controlled in any way. But this is not the case for SkyFuel. We have added a 90% auto burn limitation (to a maximum of 72 Billion) to the contract, limiting the total amount of SkyFuel that can burn. Adding the auto-burn ensures that the token's final total supply will not exceed 8 billion tokens.

Fair-Hodl

The entire SkyFuel protocol was designed and built to be highly fair to holders. We achieve all this by using the transfer fees to motivate holding and penalize liquidation. We have separated the sell and buy fees to be paid by the seller and the buyer separately. The selling fee is added to the amount the seller want's to liquidate, and the buy fee is subtracted from the amount the buyer gets. With only a 5% fee on all buys and a 25% fee on all sales, the SkyFuel protocol is fair to holders. The selling fee is paid only by the seller, and we use the entire sell fee in part for statically rewarding holders and part for burning to increase the overall value of the token, thus favoring the holders.

No Impulse-Liquidation

The way the fees are distributed makes it impossible for the seller to liquidate his entire portfolio just from an impulse. Because the selling fee is added to the total amount the seller wants to sell, the seller must first calculate the amount before transferring the token. For example, if a seller wants to liquidate his entire portfolio of 1000 tokens, he cannot sell 1000 tokens. He must first calculate the 25% fee from the total amount and must have 1250 tokens in his wallet to liquidate 1000 tokens.

We have added this function to the SkyFuel protocol to incentivize the seller not to sell but instead, hodl the token. Our basic philosophy behind this approach was simple: If you cannot operate heavy machinery, you should not be allowed to liquidate your SkyFuel portfolio. Or at least we will make it more difficult and mathematically challenging to liquidate your entire portfolio. This way, we can make sure that all users have to think twice (and do some math) before deciding to liquidate their entire SkyFuel portfolio.

Anti-Bots

Another advantage of the way we have distributed the fees is that the Bots will hate it. We cannot stop bots and automated scripts from buying and dropping the token, thus influencing the price, but we can make it more difficult and financially not feasible at scale for them to operate. We designed the token like this to ensure that bots and automated programs do not influence the price.

Merchant Addresses

The way we have distributed the fees may generate problems in the future if we plan to use the token for transactions. To fix this, we have created a particular type of wallet address, called Merchant Addresses, that are excluded from paying the selling fee themselves or any other address interacting with the merchant address. We can give the Merchant status to any wallet address.

We will start with just two merchant addresses, one for donations and one for our internal payments for all our services. By using the merchant status, any payment to buy one of our services is excluded from the selling fee, and any donation to the donation address is also excluded.

We will extend this functionality in the future as we plan our payments system. We will announce on our website any future developments in this direction.

SkyFuel Protocol

SkyFuel employs six simple principles: Reflection + Burn + Anti-Bots + No Impulse-Liquidation on each sell and LP acquisition + Fair-Hodl on each buy. The seller is taxed a 25% fee for each trade and the buyer a 5% fee. The fees are distributed as follows:

The 5% buy fee is automatically subtracted from the amount the buyers buy and is distributed as follows:
• 2% send to the Marketing and Dev fund to help us maintain and future develop this project.
• 3% is split 50/50, half of which is sold into BNB, while the other half of the SkyFuel tokens are paired automatically with the previously mentioned BNB and added as a liquidity pair on Pancake Swap.

The seller must manually add the 25% sell fee on top of the amount he wants to sell, and this fee is distributed as follows:
• 5% is redistributed to all existing holders
• 20% is automatically burned and subtracted from the total supply. The auto-burning process will happen until 90% of the total supply is burned. After this stage, the community will vote to remove the 20% or redistribute it to all holders.

SkyFuel Distribution

• Total initial supply: 80 Billion SkyFuel
• Pre-sale supply: 40 Billion SkyFuel
• Ambassadors Reserve: 1 Billion SkyFuel
• Marketing Reserve: 1 Billion SkyFuel
• Airdrops Reserve: 1 Billion SkyFuel
• Auto-Burn: 90% of the Total initial supply up to 72 Billion SkyFuel

• Initial LP Lock: approximately 37 Billion SkyFuel (or the Initial LP Lock = Total initial supply - Pre-sale supply - Ambassadors Reserve - Marketing Reserve - Airdrops Reserve)

• Final Total Supply: 8 Billion SkyFuel

SkyFuel Safety

Our step by step plan to ensure 100% safety of the SkyFuel protocol:

1. There are no tokens not accounted for. The dev team has received 0 tokens, and all the tokens are divided approximately 60/40 between pre-sale and LP lock.
2. Fair launch thru pre-sale. All the management and dev team members can buy tokens just like any other community member thru the pre-sale stages. All community members can buy the SkyFuel tokens and receive various bonuses based on each pre-sale stage.
3. The Initial LP is locked for three years.
4. LP is generated with every trade and locked on Pancake Swap.
5. After 90% of the total supply is burned, the community will vote on the final fees and their distribution. After the final changes are made, we will lock the contract forever.