xWhat is a reward token, exactly?
A reward token rewards users for completing various tasks. The most prevalent instance of this type of activity is HODL, which rewards users for simply holding tokens. It operates by charging a fee on each transaction equal to a percentage of the tokens transferred.
The tokens collected are then used to reward existing holders. To receive the rewards, you can use your token or another popular cryptocurrency, such as BUSD or DOGE.
What types of reward tokens are available?
The most frequently created reward tokens are reflection tokens. The collected tokens are distributed as a reward in this mechanism. Users accumulate additional tokens over time by simply HODLing the tokens. This is popular for a number of reasons. To begin, it is extremely effective because it makes use of a technique called reflection. To keep things simple, reflection does not require explicit distribution of reward tokens; rather, it updates the user’s balance based on their current holdings, which saves a significant amount of transaction gas. Additionally, by distributing your own tokens, you avoid the need to sell them in order to acquire BUSD or other tokens, which can result in a decline in the value of your token.
Another type of reward token, dubbed a “baby” token, has recently gained popularity, such as babyDOGE or babyBUSD. These tokens pay their holders in DOGE or BUSD. While obtaining BUSD/DOGE requires more gas and token exchanges, they are extremely appealing to investors.
How does one create one?
One method for creating such a token is through self-programming. Both reflection and baby reward tokens are fairly complicated concepts. To learn blockchain programming, create, and test such tokens, a significant investment is required. Even after that, there is a possibility that your token will contain bugs, allowing for possible hacker exploits.
However, a much simpler method exists now that makes use of the incredible no-code platform Unicarve. Unicarve’s BEP20 token generator enables you to create BEP20 tokens with modern tokenomics features such as reflection or rewards in BUSD or another token, liquidity generation, marketing and charity wallets, and hyperinflationary buyback. It not only enables the creation of tokens on Binance Smart Chain through the use of modern controls, but it is also extremely simple to use and one of the most affordable token generation platforms available.