Dayvidende 1.0 (DVE Token Sale Phase)
In the initial phase of the project, called Dayvidende 1.0, we focus primarily on generating yield from investments in DeFi to cover the guaranteed 30% APR for DVE token holders. From the surplus, half of the tokens are used to buy back DVE from the liquidity pair we created and burn those tokens by sending them to a zero address, from which they can never be retrieved. The remaining half stays within the project, either as a reserve held in BNB tokens or, depending on the Bitcoin cycle, partially invested in mid-term altcoins to grow the BNB reserve.
BNB tokens in the reserve do not remain idle but are utilized in Binance Launchpool or standard staking, increasing the final return rate by several to over a dozen percent annually. The distribution period is crucial— the longer it lasts, the higher the initial valuation of the DVE token in Dayvidende 2.0. This is because the DVE token is designed to reflect and represent a share in the entire project’s treasury. Thus, the longer the distribution period, the more valuable the treasury becomes, and the fewer tokens remain in circulation.
For example, if at the end of the distribution period (after the DVE token issuance is complete), 5 million of the 10 million tokens have been burned and the treasury is valued at $15 million, the initial valuation of the token upon transitioning to Dayvidende 2.0 would be $3 per token ($15M ÷ 5M DVE). Similarly, as profits increase, so does the number of tokens burned daily, and as the circulating supply decreases, the amount of money needed to ensure the guaranteed 30% APR also decreases.
As tokens are burned through buybacks from the liquidity pair, the DVE token price in the BNB pair rises. Combined with the ability to purchase continuously available DVE tokens from our website, this creates arbitrage opportunities. For example, after significant profits and token buybacks for burning, the price in the pair might rise to $1.10. Savvy traders could sell their DVE tokens, driving the price back down to $1.00, and then repurchase tokens from our website at $1.00, generating a profit. With their help, a value roughly equivalent to the burned tokens returns to the project and is reinvested.
New tokens requiring coverage under the guaranteed BNB interest are only theoretical because their approximate equivalent has already been burned. Thus, the financial cycle closes, and the equivalent value of the burned tokens generates returns without needing to cover the interest on the tokens used to purchase them.
An additional benefit of this system is that the trading volume generated by these buybacks produces a 1% transaction fee for the liquidity pair holder, which in this case is primarily us. Profits from these fees are split, BNB is reinvested into liquidity to gradually increase it, reducing price impact for sellers and facilitating easier exits for investors. On the other hand DVE is simply burned.
Expanding on DVE token arbitrage, since it is valued in BNB rather than directly in dollars, fluctuations in BNB’s value—independent of our buyback efforts—create opportunities to profit from trading DVE tokens between our website and the liquidity pair. This generates additional sales volume for us and ensures the eventual completion of DVE token issuance, even without fresh external capital.
As part of Dayvidende 1.0, we also plan to introduce a classic order book for trading DVE tokens paired with stablecoins. Alongside this step, we will implement a minimum token purchase requirement directly from our website to increase volume on the order book and liquidity pair using the capital of smaller investors. The order book will feature a fee payable in DVE tokens, which will be burned immediately. Our daily token burn will be equally distributed between the order book and the liquidity pair.
If we list tokens for sale on the order book, those tokens will continue to generate BNB for us. Even if the sale is listed at $1.10, for example, our buyback activity may cause the order to be fulfilled, enabling traders to repurchase tokens from our website at $1.00 for a profit.
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