🧢NOCAP Token
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The $NOCAP token is the backbone of the NoCap ecosystem, functioning as a versatile utility token that powers DeFi operations, incentivizes participation, and bridges the protocol to real-world revenue streams. This document provides an in-depth explanation of the $NOCAP token’s mechanics, utility, and role in creating value for participants.
Token Overview
Token Name: $NOCAP
Total Supply: 100,000,000 tokens
Network: Ethereum (ERC-20 compliant)
The $NOCAP token is designed with sustainable tokenomics to reward holders, stakers, and liquidity providers, while ensuring long-term ecosystem growth. Its built-in tax, burn, and reward mechanisms create a dynamic and self-sustaining economy.
Core Utilities of $NOCAP
Staking: Users can stake $NOCAP to earn rewards in WETH (Ethereum).
Governance: Token holders can participate in decentralized decision-making for the NoCap ecosystem.
Burn and Redemption: Holders can burn $NOCAP tokens to redeem their proportional share of the token’s backing in ETH and LP tokens.
Reward Distribution: $NOCAP token taxes fund various rewards, including NFT pools and liquidity provider incentives.
Backing Value Growth: Real-world profits from cannabis operations, AI computing, and cryptocurrency mining reinforce the token’s backing and increase its intrinsic value.
Tokenomics and Tax Mechanism
The $NOCAP token features a 6% transaction tax on all buy and sell transactions. The tax is distributed as follows:
Tax Allocation:
1% to the Team: Funds operational costs and ongoing development of the ecosystem.
1% to Backing: Reinforces the token’s intrinsic value, providing stability and security.
1% to Revenue Share: Distributed to $NOCAP stakers in WETH, incentivizing long-term holding and participation.
1% to LP Staking Rewards: Rewards liquidity providers, ensuring deep liquidity for the token.
1% to NFT Rewards Pool: Allocated to NO CAPPERS NFT holders, providing consistent rewards.
1% to Treasury for Liquidity: Maintains and grows the liquidity pool for the token.
Transaction Flow Example:
A user buys 10,000 $NOCAP tokens. The 6% tax deducts 600 tokens, which are distributed to the respective pools.
The remaining 9,400 tokens are credited to the user’s wallet.
This tax structure ensures continuous rewards for participants and supports the ecosystem’s operations.
Burn Mechanism and Redemption Events
The burn mechanism plays a crucial role in maintaining the token’s deflationary nature and intrinsic value. During redemption events, users can burn $NOCAP tokens to claim their proportional share of the ecosystem’s backing.
How Burn and Redemption Work:
Burning Tokens:
Users send their $NOCAP tokens to a burn address, permanently removing them from circulation.
Proportional Redemption:
For every token burned, the user receives a proportional share of the token’s backing, including ETH and LP tokens from the treasury.
Redistribution Bonus:
10% of the burned amount is redistributed to remaining $NOCAP holders, incentivizing long-term holding.
Example Redemption Event:
The treasury holds $1,000,000 in ETH and LP tokens, backing 100,000,000 $NOCAP tokens.
A user burns 10,000 $NOCAP tokens, representing 0.01% of the total supply.
The user receives $10,000 worth of ETH and LP tokens (0.01% of the backing).
Additionally, 1,000 $NOCAP tokens (10% of the burned amount) are redistributed among remaining holders.
Backing and Value Stability
The $NOCAP token’s value is supported by the NoCap treasury, which grows through:
Real-World Asset Revenue: Profits from cannabis growing, distribution, and hardware operations.
Ecosystem Revenue: Taxes on token transactions and NFT sales.
Treasury Allocations: A portion of each transaction tax directly funds the backing pool.
Treasury Composition:
ETH Holdings: Provides liquidity and ensures backing stability.
LP Tokens: Strengthens token liquidity in decentralized exchanges.
This dual-layered treasury ensures a sustainable value proposition for $NOCAP holders.
Staking and Rewards
$NOCAP Staking:
Stakers earn rewards in WETH (Ethereum) from the 1% tax allocated to the Revenue Share pool.
Rewards are proportional to the amount staked and the user’s staking weight.
Multiplier Mechanism:
The longer users stake, the higher their staking weight grows, thanks to the multiplier mechanism.
Example: Staking 10,000 $NOCAP with a 2x multiplier earns rewards as if 20,000 tokens were staked.
Unstaking Penalty:
Unstaking any portion resets the multiplier for that amount, incentivizing long-term staking.
Economic Sustainability
The $NOCAP token’s ecosystem is designed for long-term sustainability:
Circular Economy: Taxes collected from transactions are reinvested into rewards and backing.
Real-World Revenue: Cannabis operations and AI infrastructure profits provide additional funding for the treasury.
Deflationary Model: Burning tokens during redemption events reduces supply and increases value for holders.
Key Benefits for Participants:
Holders: Gain from redistribution bonuses and intrinsic value growth.
Stakers: Earn WETH rewards and benefit from growing staking multipliers.
Liquidity Providers: Receive $NOCAP rewards and contribute to the token’s stability.
Future Growth of $NOCAP
The $NOCAP token is at the heart of NoCap’s ambitious expansion into:
Decentralized Finance (DeFi): Enhanced staking mechanisms and community governance.
Real-World Assets (RWA): Cannabis operations generating consistent revenue streams.
AI and DePIN (Decentralized Physical Infrastructure Networks): Leveraging AI computing and cryptocurrency mining for additional treasury growth.
By aligning tokenomics with real-world profits, $NOCAP ensures a sustainable and rewarding experience for all participants.
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