What is a BEP20 Token, and why would you want to make one?
A BEP20 token is a fantastic choice if you're thinking of making your own cryptocurrency token. To launch a cryptocurrency token, it must be deployed on a blockchain. The blockchain serves as a distributed ledger for your token, keeping a verified record of all transactions. Without this transaction database, no one can genuinely trade or use your token. Because of increased transaction volumes, Ethereum is the most frequently used blockchain, yet it is experiencing congestion, low transaction speeds, and high transaction prices. On the Ethereum network, a basic token exchange can cost anywhere from $5 to $10. Binance Smart Chain (BSC) is a blockchain network that is comparable to Ethereum in terms of technology but offers significantly lower transaction costs as a result of a few adjustments. It can also process a larger number of transactions in a shorter amount of time.
BSC is currently the fastest growing blockchain, gaining investors due to its low transaction fees and high speed. You must first create a BEP20 token before using BSC to distribute your own token. These BEP20 tokens might be used as a digital currency for everything from payment of goods to community rewards. These BEP20 tokens might be used as a digital currency for everything from payment of goods to community rewards.
What should you keep in mind while you create your BEP20 token?
So, you're all excited to create your BEP20 token, but where do you start? Let's look at some of the questions you might be considering:
Anti-Whale Mechanics: Setting a limit on how much a wallet may hold is essential if you don't want someone to simply hoard all of your tokens. You also don't want to perform a massive sell transaction that drives down the value of your tokens. Setting a token's maximum transaction limit is required for this. These limitations prevent whales, or large holders, from manipulating your token.
Rewards: You want to attract as many investors as possible to your token, and holding rewards is a wonderful way to do it. To incentivize current holders to keep the tokens, you can deduct a modest charge from all transactions, say 2%, and give it to them. This works in a similar way to how equities pay out dividends, only it happens much faster and at a higher percentage. You can use the collected fee to reward users in any token of your choices like BUSD or DOGE.
Automatic Liquidity Generation: Automated liquidity generation, popularized by Safemoon, is designed to provide long-term stability. A tiny fee is charged for each transaction, which is used to improve liquidity on exchanges such as PancakeSwap, enhancing price stability and allowing for bigger trading volumes for the token.
Buyback: A few tokens, such as EverRise, have started this trend. Buyback is a term used in the stock market to describe when a corporation buys back its own stock on the open market, hence raising the stock's value. Similarly, when the market is experiencing selling, the token contract's fees are utilized to purchase back and burn tokens. These buying transactions not only add more value (BNBs) to the liquidity pool but also reduce the overall circulating supply of tokens, rapidly rising the price and averting big dumps.
It's more difficult to specify these controls in the smart contract than it is to name your token.