Dex Liquidity (%)
Setting a minimum liquidity threshold of 51% or more is recommended to ensure sufficient liquidity depth in the pool. This threshold indicates that at least half of the total token supply allocated for liquidity provision should be added to the decentralized exchange (DEX) liquidity pool. By setting this minimum threshold, you help prevent potential issues such as high slippage and low trading volume, which can adversely affect the trading experience for users. Additionally, maintaining adequate liquidity encourages market stability and investor confidence in the token. Therefore, it's advisable to prioritize liquidity provision and adhere to the recommended minimum threshold when launching a token.
In a buyback program, you have the flexibility to allocate the total liquidity into two parts: one part for creating initial liquidity on a decentralized exchange (DEX), and the remaining difference for buybacks over tiered time periods as determined by the developers. This allocation strategy allows for active management of liquidity while also supporting the token's price stability and value appreciation.
The total liquidity allocation can sum up to 51% to qualify for the buyback program. By splitting the liquidity in this manner, you ensure that a significant portion is dedicated to providing initial liquidity on the DEX, which enhances trading opportunities and market accessibility for users. Meanwhile, the buyback component enables the project to repurchase tokens from the market over time, providing support for the token's price and rewarding investors.
Overall, this dual approach to liquidity allocation and buyback program implementation can contribute to a balanced and sustainable token ecosystem, fostering investor confidence and long-term growth potential.
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