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bvdaniel.base.eth
@bvdaniel
If you aim for your token to eventually be listed on any centralized exchange (CEX), including Coinbase, do not make the buyback of your fees the core of your product. This is the reason why Virtuals was never listed, and the reason Clanker got the listing. Learn how to play the game, don't cry if you don't understand it.
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Keithereum
@keithereum
What do you mean the buyback of the fees as the core of the product? Can you give an example?
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bvdaniel.base.eth
@bvdaniel
like if your product makes fees by any means, and you have baked in your product that those fees are used to buy back your own token, then that's a nono. For example, Clanker fees are not used to buyback $clanker, virtuals does it and thus, cannot be listed: "Value Accrual for AGENT and VIRTUAL Tokens: As AI agents generate increasing amounts of revenue within the ecosystem, their market cap grows through a buyback-and-burn mechanism. Revenues from user interactions and app payments are used to buy back AGENT tokens from the open market, followed by a burn to reduce supply, which creates upward pressure on the price of each AGENT token. This value appreciation extends beyond AGENT tokens and directly impacts the value of the VIRTUAL token... ...As AGENT tokens appreciate due to revenue growth and supply reduction, the VIRTUAL token also benefits from higher demand and increased liquidity."
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Keithereum
@keithereum
Is this bad in Coinbase’s eyes b/c it makes the token a security? I would think buybacks are an indication of smart tokenomics for buyers. Why does it prevent listing? Does it mean that BNKR cannot be listed either? What about using transaction fees to reward stakers, as @deployer mentioned?
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bvdaniel.base.eth
@bvdaniel
1. Yeah, i think the securities issue is the key. 2. I would think about that too, in fact i love buyback & burns. 3. I think the stakers rewards are are way to circumbent this, and probably why they chose that after starting doing just buybacks in the beggining.
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