Mercury Protocol
Website
  • Abstract
  • Unpacking the challenges
  • TBS - Intelligent MEME Alternative
  • Value Proposition
  • Mercury Launchpad
    • The Premier MEME Launchpad
    • The Challenges of Meme Economics
    • Our Solution: The Mercury Protocol
    • The Role of ME Token in Our Ecosystem
    • Our Vision for Meme Economics
    • Exclusive $ME Private Sale
  • User Guide
    • Wallet Setup
    • Private Sale Participation
    • Smartphone Guide
  • Protocol Dynamics
    • Whitepaper
    • Precheck Regulation
    • Flow Charts
    • Burn Vault
    • Time-Lock Sell Mechanics
    • TBS - Features
    • Tokenomics
    • Roadmap
    • Conclusion
  • SOCIAL MEDIA LINKS
    • Twitter / X
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    • Medium
    • Youtube
    • Website
    • Pitch Deck
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  1. Protocol Dynamics

Time-Lock Sell Mechanics

Let's examine the application of time-lock mechanics and Automatic Liquidity Provision (ALP) in various scenarios using Sam's wallet with 20,000 ME tokens:

Scenario 1:

Sam initiates a transaction to sell 1000 tokens in the exchange

Validation: PRECHECK (FAILED)

The transfer amount is 5% of his wallet balance, exceeding the acceptable 1% daily limit. As a result, the contract will not allow the transaction

Scenario 2:

Sam initiates a transaction to sell 100 ME tokens in the exchange

Validation: PRECHECK (PASSED)

The transfer amount is 0.5% of the wallet balance and is within the acceptable 1% daily limit. As a result, the contract approves the transaction after performing the following six protocol operations

  • Increases the daily transaction counter by 1

  • Lock the Wallet for 12 hours since it reaches 50% of the 1% limit

  • Accumulates 1% (1 ME token) of the transaction amount in Burn Vault.

  • Send 1% (1 ME token) of the transaction amount to the exchange liquidity pool.

  • Burn 4% (4 ME tokens) of the transaction amount forever from circulation.

  • Distributes 4% (4 ME tokens) of the transaction amount as rewards equally among holder

Scenario 3:

Sam initiates a transaction to sell 200 ME assets in the exchange

Validation: PRECHECK (PASSED)

The transfer amount is 1% of the wallet balance and is within the acceptable threshold of 1% daily limit. As a result, the contract approves the transaction after performing the following six protocol operations

  • Increases the daily transaction counter by 1

  • Lock the Wallet for 24 hours since it reaches 100% of the 1% limit

  • Accumulates 1% (2 ME tokens) of the transaction amount in Burn Vault.

  • Send 1% (2 ME tokens) of the transaction amount to the exchange liquidity pool.

  • Burn 4% (8 ME tokens) of the transaction amount forever from circulation.

  • Distributes 4% (8 ME tokens) of the transaction amount as rewards equally among holders

Scenario 4:

The investor initiates three sell transactions of 50 ME tokens, each consecutively with the exchange

TRANSACTION 1:

Validation: PRECHECK (PASSED)

The 1 st transfer amount is 0.25% of the wallet balance and is within the acceptable 1% daily threshold. The contract approves the transaction after performing the following five protocol operations

  • Increases the daily transaction counter by 1 (Total Transaction in 24 hours = 1)

  • Accumulates 1% (0.5 ME tokens) of the transaction amount in Burn Vault.

  • Send 1% (0.5 ME tokens) of the transaction amount to the exchange liquidity pool.

  • Burn 4% (2 ME tokens) of the transaction amount forever from circulation.

  • Distributes 4% (2 ME tokens) of the transaction amount as rewards equally among holders.

Note: There won't be any wallet lock since the % of the transaction amount is less than 0.5%

TRANSACTION 2:

Validation: PRECHECK (PASSED)

The 2nd transfer amount is 0.25% of the wallet balance and is within the acceptable 1% daily threshold. The contract approves the transaction after performing the following six protocol operations

  • Increases the daily transaction counter by 1 (Total Transaction in 24 hours = 2)

  • Lock the Wallet for 24 hours because the total transaction reaches the 24-hour threshold

  • Accumulates 1% (0.5 ME tokens) of the transaction amount in Burn Vault.

  • Send 1% (0.5 ME tokens) of the transaction amount to the exchange liquidity pool.

  • Burn 4% (2 ME tokens) of the transaction amount forever from circulation.

  • Distributes 4% (2 ME tokens) of the transaction amount as rewards equally among holders.

TRANSACTION 3:

Validation: PRECHECK (PASSED)

Though the transfer amount is within the acceptable 1% daily threshold, the wallet is locked after the 2nd transaction; hence, the contract will not approve the 3rd transaction

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Last updated 1 year ago

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