How does the xMoney (UTK) coin redistribution system work?

The xMoney (UTK) Coin Redistribution System employs an automated process to distribute accumulated fees to eligible token holders, fostering community engagement and providing passive income opportunities.

Dec 23, 2024 at 11:59 pm

Key Points:

• Understanding xMoney (UTK) Coin Redistribution Mechanism
• Steps Involved in the Redistribution Process
• Advantages and Implications of the Redistribution System
• Frequently Asked Questions (FAQs) Related to UTK Redistribution

How xMoney (UTK) Coin Redistribution System Works

1. Transaction Fee Collection

• When transactions occur on the xDai blockchain, a fee is charged to the sender.
• A portion of this fee, typically 0.2%, is automatically redirected to the UTK coin redistribution pool.

2. Accumulation of Redistribution Pool

• Over time, the redistribution pool accumulates UTK tokens as fees are collected.

3. Automated Token Distribution

• At predetermined intervals, the smart contract governing the redistribution system automatically distributes the accumulated UTK tokens to eligible wallet addresses.

4. Eligibility for Distribution

• Users who hold UTK tokens in their non-custodial wallets on the xDai network are eligible to receive the redistributed tokens.
• The number of tokens received is proportionate to the amount of UTK held and the duration it has been held.

5. Regular Token Distributions

• The redistribution cycle operates on a preset schedule, ensuring regular distributions to eligible holders.
• This encourages long-term holding of UTK and fosters community involvement.

Advantages and Implications of UTK Redistribution System

• Passive Income Generation: Holders receive additional UTK tokens through regular distributions, providing a passive income stream.
• Rewarding Early Adopters: The system encourages early adoption and loyalty to the xMoney platform by rewarding those who hold UTK for extended periods.
• Community Building: By incentivizing long-term holding, the redistribution system builds a strong and engaged community around the project.
• Market Liquidity Enhancement: The introduction of new UTK tokens into the market increases liquidity and supports trading activity.

FAQs Related to UTK Redistribution

1. How often are the redistribution cycles?

The redistribution cycles are typically set for every 24 hours, ensuring regular token distributions.

2. What is the minimum number of UTK required to be eligible?

There is no minimum UTK holding requirement to be eligible for redistribution. However, the amount of UTK received is proportionate to the holding amount.

3. Are custodial wallets eligible for UTK redistribution?

No, only non-custodial wallets where users have full control over their private keys are eligible for UTK redistribution.