Shortage.finance Review: Exploring Scarcity through Burning and Backing
There is a thin line between the current state of success associated with cryptocurrencies and the volatility they come along with. This year has seen the crypto market cap cross beyond the 2 trillion line, introducing more projects beneficial to investors. Currencies like bitcoin and Ethereum, among others, have breached previously set all-time highs in a few months.
While the crypto community expects more from other sectors like DeFi and NFTs, there are still issues linked to crypto investments. One of them is inflation, which in most cases affects the value of the currencies negatively. However, the concept of deflationary tokens through burning and asset-backed currencies may be a solution to the issue.
Shortage is a new project in the market hoping to utilize burning and backing to increase its token’s value intrinsically. In this article, we will get a deeper look into what the project entails and how it might benefit users in the long run.
What Is Shortage.finance?
Shortage defines its entirety as a ‘safe asset,’ backed by Ethereum. While the crypto-verse is used to stablecoins backed by other assets, such as fiat currencies, precious metals, or oil, Shortage is taking a different approach. This step proves beneficial to its token value as Ethereum shows potential in the markets and has a long-standing blockchain.
The project wishes to reduce the supply of its token while constantly increasing the Ethereum backing it. The more the backing, the higher the opportunity for the coin’s value to increase exponentially in the future.
For this reason, the Shortage token is not your best chance around getting quick money. It stands as a better long-term investment opportunity rather than a trading asset or for short-term investments. However, you can expect more if you hold your coins for a longer period to derive the most out of your Shortage investment.
The Shortage Token (RTG)
Shortage’s token RTG is an ERC-20 token, responsible for the staking services Shortage offers. According to the project’s team, the coin will have no initial coin offering or any crowdfunding in general. Uniswap V2 recently listed its main pair, RTG/ETH, on its platform on December 27. It will also be the best place for you to acquire the coin if interested.
The token has a maximum supply of 2 billion tokens, where 50% is already locked into liquidity in the Uniswap liquidity pool. The liquidity locked will be in the pool forever, as per the etherscan report. The team sent the other half to a burning address, a vital step to achieve its objective.
To build trust between the project and its users, the Shortage team has relinquished its ownership on the smart contract handling the RTG transactions and dynamics. The setting ensures that the team does not tamper with the liquidity locked or the smart contract code.
In that way, investors are assured that the team will not steal their funds through a rug pull or a pump and dump scam. The details of the whole process are available on etherscan.io, showing the current liquidity in the pool, the team’s nullifying their hold on the smart contract, and the amount sent to the dead address.
Another interesting fact about the project is that it has not allocated any tokens to the marketing of RTG. It believes that the stronghold its community creates will be the way forward for the token. Therefore, it depends on users to make an effort and advertise the coin on different platforms and introduce it to their friends and family.
RTG Ethereum Backing and Burning
To ensure a constant increase in the RTG price, the project ensures that the Ethereum backing is always higher than the tokens in the liquidity pool. You might be wondering how the project achieves this. When anyone purchases or sells the RTG token from the liquidity pool, Ether tokens replace the same amount.
In the long run, there is an amount of ETH tokens that remain incapable of withdrawal from the amount taken from every transaction. In turn, there will always be a surplus of ETH to cover the available RTG circulation supply for sale.
Another factor to consider is that 10% of every transaction is deducted to cater for transaction fees. Moreover, 50% of the transaction fees goes to burning while the rest is distributed to RTG holders.
How to Get Started
The whole project is easy for users to understand, eliminating complicated processes that could confuse new investors in the crypto space. As a user and RTG holder, you should not have any worries about how to get your rewards during distribution. The process is automatic as long as you have a wallet compatible with the RTG/ETH pair.
To begin the process of the buy or sell orders, you need to create a wallet for you to hold your coins. There is a variety of compatible wallets to choose from, including the Coinbase wallet, Portis, Formatic, Trust wallet, to mention but a few.
The next step is funding your wallet as per your preference. You can use an exchange or peer-to-peer services to get the amount you require for your RTG investment. Afterward, link your wallet to Uniswap and set the slippage at 12%. Confirm that everything is set and begin your purchase or sale on the exchange.
There are endless possibilities in the backing of a cryptocurrency today, as we see in stablecoins in the market. Additionally, a quality investment coin needs to reassure its holders of a positive outlook in its future to avoid unnecessary losses.
Deflationary mechanisms such as burning have become a popular way to ensure projects achieve this goal. In the same way, Shortage is taking the same pathway to give its users the value they wish to get from cryptocurrencies over time. The project hopes to make the most out of its Ethereum backing to ensure that the value of RTG increases, adding more convenience to investors.
Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Furthermore, Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site.