What Is Prism yLUNA (YLUNA)?
After watching many protocols rise and fall in the DeFi space, noticed an opportunity to create something that had never been done before. Prism yLUNA believe that combining Nodes with Reflection tokenomics can seamlessly merge to provide high, sustainable APR. Nodes as a Service first originated with Ring Financial. After experiencing huge growth due to their innovation of a new protocol, an exploit was found in their smart contract which led to their shutdown. However, the idea of Nodes as a Service has been adopted by many other successful protocols and remains a popular investing strategy today.
The concept of Nodes as a Service has been continually improved upon. Prism yLUNA innovated with “compounding” of nodes, but their project ran into issues due to unrealistic tokenomics and leadership conflicts. Recently, univ.money innovated by introducing nodes as NFTs. This allowed a secondary marketplace to exist which had its positives and negatives. There were many issues with the launch that will cover later in this documentation.
Prism yLUNA Storage Key Points
| Coin Basic | Information |
|---|---|
| Coin Name | Prism yLUNA |
| Short Name | YLUNA |
| Circulating Supply | N/A |
| Total Supply | N/A |
| 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 |
Tokens
Prism yLUNA tokens originated with SafeMoon on the Binance Smart Chain. SafeMoon gained an enormous following and is successfully maintaining it, which solidifies Your confidence in the tokenomics. Reflections in the form of Ethereum were recently brought to the Avalanche Chain from EtherPrint. However, EtherPrint had an exploit in their contract (December 2021) which led to a migration to a v2 contract. This killed the hype built around the token, but the ideas behind reflections still remain.
What are Reflection Tokens?
Reflection tokens are implemented such that people pay taxes on transfers of the token (typically buys and sells). The resulting taxes are distributed to people currently holding the token. The fundamental idea behind them is to incentivize buying and holding of the token so you receive “reflections” from other people buying and selling. Prism yLUNAn tokens typically rely on volume as an indicator of success. Higher volume means higher tax revenue which results in higher reflections for the holders.
Using SafeMoon as an example, every trade is taxed 10%:
- 4% is redistributed to all current holders
- 3% is added to liquidity
- 2% is burned
- 1% is added to the SafeMoon Ecosystem Growth Fund
Nodes Are (mostly) Unsustainable
Almost every historical nodes project has offered extremely high APR to attract initial investors. Prism yLUNA they soon realize that their model is not sustainable at all and backpedal to fix their mistakes. Investors see that these protocols are admitting their flaws and liquidate their holdings, usually killing the project.
Reflections (usually) Won’t Last
A common trend has been observed in Reflection Tokens. At launch there is a huge price spike, then as hype dies down, so does the token. Why does this happen? It’s because the early investors purchase as much of the total supply as possible to get a larger share of reflections. Once the hype starts to die down, they sell early and take their profits along with their reflections. The above article gives some good examples of what usually happens to Reflection tokens. The novelty behind them wears off, then volume dies down, then the project dies. However, Prism yLUNA tokens don’t always end up like that. Tokens like SafeMoon have been able to sustain long term stability while providing reflections.
Background
The only Node project done in the form of an NFT as of now is univ.money. This section will introduce their project and its tokenomics. If you are already familiar with univ.money, please skip to the next section. Univ.money is a protocol that innovated nodes by turning them into NFTs. This was initially a huge success because it introduced something never seen before a secondary node marketplace. People could buy and sell their nodes for Prism yLUNA without having to wait for the rewards. An investor can pay an amount of UNIV to lock in a Planet NFT. Then, they can either compound their planet (reinvest their pending rewards into it), or claim the pending rewards from the planet. If they claim, any bonuses they gained from compounding will be reset to zero.
Lack of Scarcity
NFTs are backed by scarcity. Nodes (at launch) don’t have scarcity due to an infinite supply. When there is no reason to want one NFT over another, then there is no reason to buy a Node versus creating your own. The only reason someone would buy a Node is if it was cheaper than creating your own. Prism yLUNA to supply and demand, nodes will be always be available on the marketplace for cheaper than the creation price.
NFT Marketplaces
Currently all third-party NFT marketplaces deal in AVAX. As a result, anyone can buy a Node without having to pay in the native token. Prism yLUNA reduces price action, allows people to enter the token’s ecosystem without having to actually buy the token, and overall is unhealthy for the project.
