What Is Buff Samo (BSAMO)?

What Is Buff Samo (BSAMO)? Complete Guide Review About Buff Samo.

What Is Buff Samo (BSAMO)?

Fractional reserve banking works because depositors don’t withdraw their funds all at once. A depositor’s faith in the banking system rests on regulations and agencies like Federal Deposit Insurance Corporation (FDIC).ICE does not have FDIC insurance but it has an incentive structure that protects stakers. Let’s take a look at how it performs during a hypothetical bank run.

In this scenario, Buff Samo assume the majority of stakers would panic and unstake their tokens from ICE – the staking percentage which stands at 92% now quickly collapses to 3.3%, leaving only 55,000 ICE staked. Next, they assume the Risk-Free Value (RFV) inflows to the treasury completely dry up. For context, RFV is currently growing at about $1 million every 2 days. However, during a bank run this growth will likely stop.

Buff Samo Storage Key Points

Coin BasicInformation
Coin NameBuff Samo
Short NameBSAMO
Circulating SupplyN/A
Total Supply18,000,000,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

Why is the market price of ICE so volatile?

It is extremely important to understand how early in development the ICE DAO protocol is. A large amount of discussion has centered around the current price and the expected stable value moving forward. The reality is that these characteristics are not yet determined. The network is currently tuned for expansion of ICE supply, which when paired with the staking, bonding, and yield mechanics of ICE DAO, result in a fair amount of volatility.

Buff Samo could trade at a very high price because the market is ready to pay a hefty premium to capture a percentage of the current market capitalization. However, the price of ICE could also drop to a large degree if the market sentiment turns bearish. They would expect significant price volatility during your growth phase so please do your own research on whether this project suits your goals.

What is the point of buying it now when ICE trades at a very high premium?

When you buy and stake ICE, you capture a percentage of the supply (market cap) which will remain close to a constant. This is because your staked ICE balance also increases along with the circulating supply. The implication is that if you buy ICE when the market cap is low, you would be capturing a larger percentage of the market cap.

What is a rebase?

Buff Samo is a mechanism by which your staked ICE balance increases automatically. When new ICE are minted by the protocol, a large portion of it goes to the stakers. Because stakers only see staked ICE balance instead of ICE, the protocol utilizes the rebase mechanism to increase the staked ICE balance so that 1 staked ICE is always redeemable for 1 ICE.

What is APY?

APY stands for annual percentage yield. It measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of ICE DAO, your staked ICE represents your principal, and the compound interest is added periodically on every epoch (2200 BscScan blocks, or around 8 hours) thanks to the rebase mechanism.

Buff Samo One interesting fact about APY is that your balance will grow not linearly but exponentially over time! Assuming a daily compound interest of 2%, if you start with a balance of 1 ICE on day 1, after a year, your balance will grow to about 1377.

Why does the price of ICE become irrelevant in long term?

As illustrated above, your ICE balance will grow exponentially over time thanks to the power of compounding. Let’s say you buy an ICE for $400 now and the market decides that in 1 year time, the intrinsic value of ICE will be $2. Assuming a daily compound interest rate of 2%, your balance would grow to about 1377 ICEs by the end of the year, which is worth around $2754.

Buff Samo That is a cool $2354 profit! By now, you should understand that you are paying a premium for ICE now in exchange for a long-term benefit. Thus, you should have a long time horizon to allow your ICE balance to grow exponentially and make this a worthwhile investment.