The standard or network used by a crypto token is very important. This token standard plays an important role in the cost of facilitating transactions with the said token.
Safemoon Cash is doing something out of the norm. This crypto token is using a BEP-20 standard instead of ERC-20, which is commonly used by many other crypto tokens.
I will tell you the reason why Safemoon Cash shunned the latter and the relevance of the BEP-20 token standard to the success of this project.
THE PROBLEMS WITH ERC-20 TOKEN STANDARD
A couple of things have gone wrong with the ERC-20 token standard. With the current state of things, it doesn’t look like this crypto token standard is seriously positioned to address the issue.
These are some of the challenges with using a crypto token based on the ERC-20 token standard:
1- HIGH GAS FEES
Gas fees, also called network fees are very important in any cryptocurrency transaction. These are the fees traders or investors in a cryptocurrency project are expected to pay before their transactions can be completed.
However, most of the crypto tokens based on the ERC-20 token standard tend to accrue lots of network fees.
2- TOKEN STANDARD MEANT FOR INVESTMENTS AND NOT FOR PROFIT-TAKING
One of the first things any cryptocurrency trader masters is the Act of Taking Profit. Taking profits is very important, because the cryptocurrency market is very volatile. As such, it will be quite difficult to predict the direction of the market.
Thus, the ERC-20 token standard is designed to be used for cryptocurrency investors and not cryptocurrency traders. This is because those investors tend to leave their crypto assets for long to accumulate more profits instead of the traders who make small profits and will have to pay higher amounts before they can swap their assets.
THE BEP-20 APPROACH AND WHY SAFEMOON CASH IS BETTER
So, why is Safemoon Cash taking a different turn by using the BEP-20 token standard, instead of the ERC-20?
The following reasons show why this project is leveraging the BEP-20 token standard:
1- DESIGNED FOR TRADES
The first reason why Safemoon Cash opted for the BEP-20 token standard is because it wants to help cryptocurrency traders the more.
At this point, taking profits is very essential. So, it makes sense that this project used the BEP-20 token standard because this token standard charges only a minimum amount of money.
Besides, the Safemoon Cash project makes it more attractive by cutting down on the cost of transactions. All you need to pay is 4% of the transaction you make.
This is commendable, considering that most ERC-20 token standard projects tend to charge more.
2- FEE FOR EVERYONE
The other unique advantage of the BEP-20 token standard used by Safemoon Cash is that it redistributes the 4% transaction/tax fee.
The redistribution is done in a way that Safemoon Cash 2% of the fee is automatically sent to the liquidity pool while the other 2% is redistributed to the wallets of the token holders.
CONCLUSION
Safemoon Cash is doing an awesome job of reducing transaction fees while building an innovative project that will shake the cryptocurrency community.
For more insights, follow the links below:
Website: https://safemooncash.org/
White paper : https://drive.google.com/file/d/1YZyTJteAVpaHna13UU2sZBJkIBB4 K 702/view
Twitter : https://twitter.com/safemooncash
Telegram : https://t.me/safemooncash
Discord: https://discord.com/invite/fDp6pQ4Hbd
Reddit : https://www.reddit.com/r/SAFEMOONCASHCommunity/
Youtube : https://www.youtube.com/channel/UC15-d8hPAs30OxAUX9VRdng
Tiktok: https://www.tiktok.com/@safemooncash
Instagram : https://www.instagram.com/safemooncash
AUTHOR
Bitcointalk Username- Dividesug
Bitcointalk Profile- https://bitcointalk.org/index.php?action=profile;u=2767685;sa=summary
Bsc Chain Wallet- 0x96C9cFfEa9328D6aC96160B515D293915A0b88f7