Poppy Chooses to be Created as a TRON TRC10 Token
The TRON-based POS system, Poppy, has decided to be created as a TRON TRC10 token after Proposal 14 and 15 were passed.
TRC10 tokens improve the efficiency of Poppy token and would, under the new protocols, be able to achieve high precisions and interact with smart contracts. As for Poppy tokens, those created for SEEDGerminator—11,306,344 tokens, to be precise—would be the only ones which would be used and distributed in the Poppy ecosystem. Beyond those already created, no Poppy tokens would be created.
For every TRON (TRX) transaction, there would be a total fee of 2 percent. As to how the fee system works, the team explained in a recent Medium article:
“The first 1% fee is the payment processing fee for all TRX transactions. This 1% will be Poppy’s revenue. This revenue will be split with approximately 72% going to the Poppy organization itself, and approximately 28% distributed to Poppy token holders in the form of Poppy. This is described in greater detail in the Poppy Rewards to Holders section. The second 1% fee will be rewarded back to the purchaser in the form of Poppy token(s).”
Talking about rewards for holders, the team said:
“As described in the Fees section, a 1% fee is charged by Poppy per TRX transaction as Poppy’s revenue. Approximately 28% of this fee will be put into an account to be distributed to Poppy token holders. The funds in this account will accumulate throughout the monthly rewards period. All assets in this rewards account will be used to purchase Poppy tokens at the end of the reward period. Those Poppy tokens will be purchased through the Poppy Market Maker as described in the Poppy Market Maker section.”
Talking about rewards for users, the team said:
“Poppy Rewards to Users will be distributed to wallets that make purchases using Poppy. The users will receive their rewards in the form of Poppy tokens. There will be no set amount of Poppy token to be rewarded. The amount of Poppy token rewarded will be based on the value of Poppy at the time and will be determined by the Poppy Market Maker as described in the Poppy Market Maker section.”
Moving on to Poppy Market Maker, the team said:
“To provide Poppy tokens for the Poppy Rewards to Users and Poppy Rewards to Holders, the Poppy rewards system will purchase Poppy tokens on the resale market. This purchase will happen between the close of the monthly rewards period and the 7-day limit for distribution of Poppy to rewards earners. This purchasing process will be controlled by smart contracts in the Poppy Market Maker system.”
Adding to it:
“Poppy will periodically determine the most effective system to accomplish purchasing the Poppy tokens required by the rewards programs. Details of the Poppy Market Maker such as choice of exchange may be modified in the future based on this determination. All Poppy tokens purchased for a monthly reward period will be purchased through the selected method in sequential buys by the execution of a smart contract. This means all Poppy tokens will be bought from the same place at the available market rate. The exchange used or method of purchase will be announced publicly in advance of the purchase.”
Continuing with it:
“Within the Poppy Market Maker, Poppy Rewards will typically purchase Poppy tokens from a Bancor style exchange. This means the rewards programs will buy the required Poppy tokens at the available market rate. Using a Bancor style exchange means there will always be Poppy tokens for sale as one side of the listed pairing can never be completely bought out. This will cause the rewards programs to purchase fractions of a Poppy token at whatever price is available at the time the rewards program makes its purchase.”
Talking about it further:
“Within the Poppy Market Maker, the Poppy token will be paired on a Bancor style exchange only with SEED. The Poppy Rewards system will use the funds in the Poppy Rewards accounts to purchase SEED at market rate from the exchange. This SEED will then be exchanged for Poppy.
Both the SEED/Poppy and the SEED/TRX Bancor style pairings will be available to the public. In this way Poppy and SEED token holders may sell their tokens to the Exchange at the market rate. The public will be able to access the Bancor style exchange and trade using the SEED/TRX and SEED/Poppy pairings.”
Adding to that, the team said:
“The Poppy Market Maker system requires approximately 1.28% of every purchase made using Poppy to be allocated through the rewards programs to purchase Poppy tokens at the market rate.
All transactions within the Poppy Market Maker system are subject to minimum transactions amounts based on the involved currency. For example, Poppy can not be transacted in amounts smaller than 0.000001 Poppy. This means after distributions are made, accounts within the Poppy Market Maker may have small amounts of left over funds. These funds will be retained by the Poppy Market Maker until the next rewards period.”