The actual offer is the amount of minted RHT depending on the deposited amount of BUSD. RHT is therefore theoretically unlimited. However, this lack of limitation has no effect on its value due to the 100% coverage.
Goal: increase in value
If the RHT is moved, up to 1% of the respective trading volume of RHT is burned. For larger quantities, the amount of trade volume burned decreases to 0.1% for 500,000 RHT sent, or 0.05% for 1,000,000 RHT. This reduces the number of RHT in relation to the deposited BUSD. The value of RHT increases.
We believe that the portion burned is affordable for everyone. At this point it is particularly important to note that a real increase in value also requires real equivalent value. Instead of many people losing a lot of money uncontrollably, as is usual with a cryptocurrency price slide, we have opted for this burn mechanism. So everyone who moves the RHT contributes to the increase in value: but in a free decision. In addition, transactions that tend to be less popular, especially from a tax point of view, have a positive side effect. Long-term investors, on the other hand, only need to hold the RHT to make profits.
Goal: boost trade
A mechanism has been built into the contract, which we call the price mechanism. It will be triggered once the total amount of 5,000,000 RHT is reached. From this moment on, each additional RHT that is mined is imaginarily doubled. This artificially increased amount is reduced again over a countdown within 9 weeks until no more imaginary RHT exists, provided no one mintes within these 9 weeks. This temporary imaginary multiplication will continue to increase in proportion to the total amount of RHT up to an amount of 5,000,000,000 RHT. For example, from 10,000,000 RHT, each additional RHT that is mined is quintupled. From a quantity of 5,000,000,000, the regulator is 1000. This imaginary increase is reduced again as the total quantity of RHT decreases.
Due to the pricing mechanism, there are many uses for playing with the RHT. The amount that is issued to BUSD in the contract cannot be calculated in advance when the price mechanism is running, the current payout value is displayed in the contract under “Read Contract” in the form field “21. ValueForSell” is displayed. If a large quantity is mined, but the circulating supply is relatively low, the price of RHT falls many times more than when a small quantity is mined and a high circulating supply.
The consequences of this lowering of the token value have an impact on trading. If the payout price in the contract is lowered, the price achieved for an RHT on the exchanges may be higher than the amount of BUSD received by redeeming the contract. Holders wishing to sell the RHT at this time may choose to sell on the exchanges rather than redeem in the contract.
In addition, this mechanism stimulates trade. With a constant price comparison of the RHT according to contract and exchanges, traders can work specifically with the RHT in order to generate profits. Since the RHT increases with movement and is also 100% covered with BUSD, the risk of loss is calculable.