Motivation and Applications
Understanding the motivation and applications of your assets is important for a more assertive decision-making.
Last updated
Understanding the motivation and applications of your assets is important for a more assertive decision-making.
Last updated
On March 21, 2021, the most successful memecoin appeared in Brazil, whose most ambitious goal was to have some billboards spread across the country. Since then, this copy/paste contract embedded with a cool message - the protest against the R$200 bill - has been seen by its investors as a project with the power to positively impact the financial scenario throughout the country.
The REAU is a deflationary reflection token. This means that the current total of REAUs reduces with each transaction and a percentage of each transaction is redistributed among all those who have REAUs in the wallet (holders).
Além disso, o contrato foi renunciado pelo seu desenvolvedor original. Esse procedimento é comum para angariar a confiança dos investidores a curto prazo, porém impõe restrições para um projeto flexível a longo prazo. Esse é um dos motivos para a criação do token Auro.
Uma outra forma de passar credibilidade ao token é a realização de auditoria do seu código. No caso do REAU, a auditoria foi realizada pela Certik e está disponível nesse link.
Also, the contract was renounced by its original developer. This procedure is common to build investor confidence in the short term, but it imposes restrictions for a flexible project in the long term. This is one of the reasons for creating the AURO token.
Another way to give credibility to the token is to audit your code. In the case of REAU, the audit was carried out by Certik and is available at this link.
REAU's value creation was initially due to its comparison with Dogecoin and the potential of a Brazilian meme currency. By having a deflationary and reflective contract, this in theory would be able to create enough movement to generate enough burnout and redistribution to increase marketcap to up to a small fraction of DOGE.
Even so, Viralata Finance's project understands that this valuation mechanism (memecoin only) is not enough to maintain a healthy token and, as we have seen, it tends to be associated with pump and dump projects and, by those more uninformed, a pyramid scheme.
Therefore, Viralata Finance seeks to create opportunities for the appreciation of REAU without losing the power of the meme, social criticism and charity. This is possible thanks to three mechanics:
By using the REAU as a governance token of the Viralata Finance ecosystem, it is possible for people to seek to hold their REAUs in order to have voting power in the governance actions of the Viralata ecosystem.
Viralata's investment platform (farm) will allow users to apply their REAUs to receive the AURO token (second token of the Viralata ecosystem). If the return on this investment remains high, investors will naturally seek to buy REAU to invest and receive AURO free of charge.
As a form of reward for those who are supporting and building the ecosystem, a small portion of the AURO transaction will be used to buy and burn REAUs, slowly reducing the amount of circulating REAUs. This fee is still to be defined and should be small, so as not to overload AURO's transaction cost. Ideally, AURO will be a high rate, low rate token (unlike REAU, which has a high rate and low rate).
