Our Tokenomics

Total Supply & Launch Details

Infinity Protocol was launched on BSC with a fixed total supply of 1M $INFT tokens. The launch was designed to be fair and transparent:

• 100% of the tokens was added to the PancakeSwap liquidity pool alongside 2 BNB

• Liquidity Provider (LP) tokens from the initial liquidity on PancakeSwap are locked to secure the trading pool, meaning the initial liquidity cannot be rug-pulled. This gives investors confidence that the market for $INFT is here to stay.

• There was no presale or private sale (if applicable), ensuring every participant had an equal opportunity at launch to acquire $INFT at the same market price.

These launch details highlight Infinity Protocol’s commitment to fairness and security right from the start.

Buy/Sell Tax: 4% to Infinity Fund

Every transaction (buy or sell) of $INFT is subject to a 4% tax. Unlike many other tokens that split taxes into multiple destinations (such as reflections to holders, marketing, liquidity pool, etc.), Infinity Protocol takes a simpler and more powerful approach:

• 100% of the 4% tax goes into the Infinity Fund. There are no holder reflections, no direct burns from the tax, and no dev fees taken from this tax. Instead, the entire amount is captured to grow the project’s investment fund.

• This means whenever someone buys or sells $INFT, they are effectively contributing 4% of that transaction value to a communal pot that benefits the project and all holders indirectly. This tax is the lifeblood of the Infinity Fund, continuously feeding it with assets.

• The tax is programmed into the $INFT smart contract, so it’s automatic. On each transaction, 96% of the value goes to the trader (buyer or seller) and 4% is siphoned to the fund wallet. This happens seamlessly on-chain.

By directing the full tax to the Infinity Fund, the protocol ensures maximum growth potential for the treasury, which in turn maximizes the support it can provide to $INFT’s price (through investments and buybacks). Essentially, every trade funds future growth.

The Infinity Fund Growth Model

The Infinity Fund is the treasury wallet where all tax revenues accumulate. But unlike a passive treasury, the Infinity Fund is actively managed to grow over time via yield farming:

• Initial Funding: At launch, the fund started at $100. Very quickly, as people start trading $INFT, the 4% tax from each transaction begins to fill the fund.

• Continuous Inflow from Taxes: Every day, as $INFT is traded, more value flows into the fund. High trading volume = faster growth of the fund. Even in periods of low volume, any activity still contributes something. The fund thus grows in a way that correlates with market interest and activity around $INFT.

• Investing the Fund: Rather than letting the collected assets sit idle, the Infinity Fund is deployed into yield-generating opportunities. This can include:

  • Providing liquidity in other decentralized exchanges or liquidity pools to earn fees or LP rewards.

  • Staking assets (like BNB, BUSD, or other stablecoins) in trusted protocols to earn interest or farming rewards.

  • Participating in farming programs of reputable DeFi projects on BSC that offer competitive yields.

• Risk Management: (Although not visible in tokenomics numbers, it’s worth noting) the fund is managed with a focus on relatively low-risk, stable returns. For example, favoring stablecoin farms, or farms on established platforms, to minimize the chance of loss. Diversification is key — the fund will be spread across multiple pools to mitigate risk. These details might be adjusted by the team as needed to maintain performance and security of the fund’s assets.

In summary, the Infinity Fund grows in two ways:

1. Width (Tax Inflows): More transactions = more tax money added.

2. Depth (Investment Returns): Wise deployment of fund assets = more profit generated internally.

This growth model is what powers the rest of Infinity Protocol’s ecosystem rewards.

Daily Yield, Split 50/50 (Reinvestment & Buybacks)

Infinity Protocol’s tokenomics incorporate an automatic daily routine to capitalize on the fund’s earnings:

• Daily Yield Calculation: Each day, the protocol checks how much the Infinity Fund earned from yield farming.

• 50% Reinvested: Half of that daily yield is immediately plowed back into the Infinity Fund’s principal. Using the above example. This reinvestment is crucial – it means tomorrow’s yield will be calculated on a slightly larger fund, leading to compounding growth. Over time, this compound interest effect can significantly boost the fund size, even if there were no further tax inflows or if yield rates fluctuate. It’s a strategy to grow the treasury organically.

• 50% Buybacks: The other half of the daily profit is used for buying back $INFT tokens on the market. The protocol will take that 50% and execute purchases of $INFT via PancakeSwap. This is typically done as a single transaction or a few transactions to minimize price impact, and is performed at a random time.

This 50/50 strategy ensures a balance between growing the fund further and immediately rewarding holders:

• By reinvesting half, the protocol doesn’t “eat the seed corn” – it always saves some profits to keep increasing its earning power.

• By using the other half for buybacks, it delivers tangible, immediate value to the market, which can help drive positive market sentiment and holder confidence.

Buyback Mechanism & Impact on Market Cap (AMM Dynamics)

Buybacks are a familiar concept in stock markets (companies buying their own shares). In crypto, especially on an Automated Market Maker (AMM) like PancakeSwap, buybacks have a direct and algorithmic impact on price:

• PancakeSwap’s liquidity pools determine the price of $INFT based on the ratio of $INFT tokens to BNB (or whatever paired asset) in the pool. When the Infinity Fund uses BNB to buy $INFT, it removes $INFT from the pool and adds BNB to the pool.

• This action changes the ratio: fewer $INFT and more BNB in the pool means $INFT’s price goes up relative to BNB. The formula x*y=k (constant product) dictates that if one side of the pair is added (BNB) and the other removed (INFT), the price of INFT increases. In practical terms, each buyback drives the price upward.

• Market Capitalization Growth: Market cap is calculated as price per token * circulating supply. This causes:

  • Price Increase: As shown, buybacks push the price per $INFT up. Even if the number of tokens stays the same, a higher price means higher market cap.

• Cumulative Effect: One buyback might not drastically change the price if the amount is small relative to liquidity. However, Infinity Protocol is doing buybacks regularly (daily) and using substantial portions of yield for it. This creates a cumulative effect on price. Imagine a steady drip of buy pressure every day – over weeks and months, it can significantly lift the price compared to a scenario with no buybacks.

• Holder Benefits: The immediate benefit of a buyback is that if you’re holding $INFT, the value of each of your tokens increases as the price goes up. It’s as if the protocol is a guaranteed buyer that shows up consistently.

• Trust and Stability: Knowing that there is an automated system supporting the price provides a kind of price floor stability. While $INFT’s price can still fluctuate with the crypto market and trading activity, the buybacks act as a buffer against deep price drops: if the price dips, the protocol is essentially programmed to buy more (since a lower price means the yield’s BNB can buy back even more tokens, possibly having a greater effect). This doesn’t make $INFT immune to volatility, but it adds resilience.

In essence, the buyback mechanism ties the success of the Infinity Fund (via yield farming) directly to the market value of $INFT. As the fund succeeds and grows, it continuously injects value back into $INFT. This feedback loop is what makes Infinity Protocol’s tokenomics particularly robust. Instead of relying solely on new investor money to boost the token’s price, $INFT creates its own buying demand from an ever-growing, profit-generating fund.

Bottom Line: $INFT’s tokenomics are engineered for sustainability and growth. With a fair launch, a focused tax mechanism that feeds a productive fund, and a smart split of profits between growth and rewarding holders, Infinity Protocol aims to stand out as a DeFi project where the interests of the holders, the health of the project, and the token’s market performance are all aligned.