The characteristics of Grizzly.fi's Tokenomics.
The Dynamic Honey Creation (short DHC) is what mints the $GHNY tokens of the platform. These tokens are then paid out to the users of the platform (mining or staking) as rewards.
In order to understand the Dynamic Honey Creation, we would like to explain to you the Bee Efficiency Level first:
The Bee Efficiency Level determines how many new $GHNY get created per $BNB collected in the 50% Dynamic Honey Creation. Let’s show this with some numbers:
- BNB is at a Price of $500
- GHNY is at a Price of $10
- The Bee Efficiency Level is set to 50
The Bee Efficiency Level is 50, that means that per BNB ($500), 50 GHNY at a price of $10 are minted and distributed to the Liquidity Miner.
If the $GHNY token price increases (for example to $15) but the Bee Efficiency Level stays at 50, the Dynamic Honey Creation still mints the same number of tokens which are now worth 50% more. This means the DHC actually gives back more value than collected in the DHC.
The Bee Efficiency Level is not set in stone but is adjusted on a weekly basis to ensure a well-balanced distribution of new Honey Tokens. As the platform progresses, the minting of new Honey Tokens is decreased to increase its scarcity and reward early Beelievers.
Now we know how new $GHNY is created and given to Grizzlies. But what happens with the 50% which are not reinvested into the Hive? Simple – the 50% collected are used to buy GHNY-BNB LP tokens.
10% of the GHNY-BNB LP tokens are sent to the dev team to ensure steady growth of the project. Over time Grizzly.fi will become more and more decentralized and the 10% fee will be reduced and also given back to GHNY stakers.
40% of the LP Tokens are then given to Grizzlies that stake Grizzly Honey as rewards. When the staking Grizzly claims his rewards, the LP tokens are converted into $GHNY and $BNB. This means Grizzlies staking $GHNY will receive BNB’s as well as more $GHNY as rewards.
Grizzlies aren't afraid of the Bear Market - and the Grizzly Honey Token isn't either.
What happens when the BNB/GHNY ratio drops under the Bee Efficiency Level? If this happens the Safety Net applies; The 40% don’t go to the staking Grizzlies but are used to buy $GHNY on the open market to give back to the farming Grizzly. Additionally 10% extra tokens are minted. This makes sure the $GHNY price always stays above a certain ratio (above the elected Bee Efficiency Level) between BNB/GNHY.