What Is Park Star (PSTAR)?
The Park Star ecosystem consists of the Parkstar APP and the project token. The application connects the B2B platform for individual parking space use with the Blockchain technology. The users of the app can offer their parking spaces via the APP and pay with crypto currency. The Parkstar token is not just a means of payment but also a reward system for the users. A lot and good user behavior is rewarded with the ecosystem token. But there are also many other advantages within the application that make use of the P-S-T-A-R token attractive. Recognizing this, developers have attempted to satisfy these conditions by using various tokenomic structures with incentives for the user to supply liquidity into the pools.
An automatic liquidity acquisition can be featured as an alternative solution compared against the traditional “farming reward” structure. An automatic liquidity acquisition function where users are offered rewards (via reflection) in lieu of traditional farming rewards. These reflections would act to distribute tokens proportional to volume, and could thus provide a more reasonable incentive for holding. Although reflection and automatic liquidity acquisition may contribute to stability, an inherent burn which can achieve token scarcity with a depreciating token supply.
Park Star Storage Key Points
| Coin Basic | Information |
|---|---|
| Coin Name | Park Star |
| Short Name | PSTAR |
| Circulating Supply | 1.60B P-S-T-A-R |
| Total Supply | 2,000,000,000 |
| Source Code | Click Here To View Source Code |
| Explorers | Click Here To View Explorers |
| Twitter Page | Click Here To Visit Twitter Group |
| Whitepaper | Click Here To View |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
How PARKSTAR and the Distribution Algorithm Works
Park Star Protocol aims to solve the problems of prior cryptocurrencies including mining rewards, farming rewards, and liquidity provisioning. Mining equipment can be both costly and harmful to the environment, but mining remains of interest due to the opportunities afforded by it. As an easy alternative to mining rewards, they propose allowing users to participate in a smart contract token reflection to produce tokens inside their own wallet. Another challenge remains to facilitate and maintain liquidity on decentralized exchanges.
By nature, decentralized exchanges require liquidity for user participation, thus the responsibility is on the developers to provide it. Park Star Historically, developers created incentives aimed at users to provide liquidity which can be outweighed by risk due to the subjectivity of impermanent loss. As a solution, they propose utilizing a smart contract function to automatically capture liquidity to be used on the decentralized exchanges and held in custody independent from user possession.
Additionally, a smart contract that provides the capability to burn tokens can promote scarcity by reducing the total supply. Together, the combination of these tokenomics may afford far superior benefits for the community within the decentralized venue. Allowing these functions to be amplified and dependent on volume provides an ideal incentive to expedite adoption and foster new use cases.
Automated Liquidity Acquisition
Park Star understand that liquidity is crucial in any trading environment. By definition, decentralized liquidity is simply the accessibility of tokens operated and controlled by a smart contract hosted by a decentralized exchange. Historically, market makers have been used to provide a service for buyers and sellers on traditional order book exchanges for a better user experience. The main function of these market maker services was to fill buy and sell orders promptly and reduce overall market volatility caused by large orders.
Park Star traditional order books have long been outdated by newer technology, and have been replaced by liquidity pools in a decentralized venue. Just as market makers are compensated for providing a service in the order book environment, proper incentives for adding liquidity are a key factor in any decentralized environment.
Token Reflection
Traditional mining is both costly and inconvenient for the user. Frictionless, static reflection rewards accrue by simply holding your tokens, and features an innovative hold-farming reward structure that stands out from conventional poolfarming rewards. Park Star models of decentralized finance tokens such as pool farming are costly and rely on user action to manually compound rewards. As a solution, they propose the utilisation of a compounding reward structure that requires no additional fees in a smart contract function, also known as token reflections.
Park Star achieve this, reflection must happen without cost or impact to the user. Considering the static rate of reflection set at 3%, the volume of market activity will directly impact the quantity of token reflection based upon the percentage of tokens held by the user relative to the overall supply. The idea behind this function is to eliminate token dependencies that have created problems in the past, including, but not limited to:
- Pooling funds in unverified 3rd party smart contracts;
- External website interfaces;
- Transaction fees needed to claim rewards.
