PAMP Network is a project build around the idea of rewarding the brave and punishing the weak as a way to prevent inflation by incentivizing token holders to keep holding while deterring sellers.
While reward and punishment might look like an overused conditioning technique that has no place in the crypto world, the fact is that the protocol is pretty useful to foment a healthy ecosystem that benefits all users.
For this reason, the project has received overwhelming support from the crypto community, evidenced by the $560.000 worth of volume traded upon the 24 hours after trading went live back in June on the PAMP/ETH trading pair.
This represented an early milestone for the young project as it was able to become the highest volume pair on Uniswap V2 just on its first day.
A Project Meant to Stop Deflation in its Tracks
PAMP is a decentralized price-reactive cryptocurrency that uses different mechanisms to adjust its inflation rate based on market demand, providing a more stable coin without the need of pegging it to a Fiat Currency.
PAMP network’s token contracts reward holders when the price increases and penalizes sellers when it doesn’t, which serves as an incentive for investors to hold tp the token and increase scarcity, effectively increasing its value based on supply and demand.
When the token price appreciates, token holders receive staking rewards based on numerous factors including the percentage the price increased, how long they have been holding PAMP for, and how many tokens they hold.
These rewards are distributed daily, which means even holding the tokens for a short time will provide its holders with rewards for helping the token appreciate, which is ultimately favorable for them too.
PAMP is deflationary as all token transfers have 8% of the transfer burned, which is the process removing a network’s tokens from circulation to reduce the total supply and prevent the inflation of the currency, equating the share buyback process seen with stocks.
Both the burning and the incentives to hold make the coin extremely resistant to losing value, as scarcity is constantly increased by the two mechanisms as well as providing investors with benefits when long-time investing.
Punish the Weak and Reward the Brave
Holders of PAMP are strongly incentivized to buy tokens and hold for as long as possible to maximize their profit and stability of the token, being penalized for not doing so.
If the token price fails to appreciate for the day no rewards are minted for users who did hold, while sellers who moved their tokens around have their stakes reset, negating any bonus rewards they may receive when the token does appreciate.
In addition to being deflationary, the Pamp Network embodies a similar value structure to Bitcoin and Ethereum 2.0 as the system has incentive structures built in to promote holding the token, thereby acting as a proper hedge against inflationary fiat currency.
One downside with PAMP is that sellers pay high fees and lose future staking rewards as they are not holding, which prevents day traders and forces users to consider more factors when they decide to cash-in their earnings.
However, this downside can only be considered as such depending on the situation and from the person who is considering selling, as it acts as a deterrent for day trading but benefits long-tome investors.