How are UNICOIN and PIXYDUST Sustainable Tipping Tokens

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This post is not financial advice

Though I have many posts explaining how these tokens work I still come across folks that don't fully understand the concept. that makes sense, I do thngs differently than other tokens so I get it. Also just for refernce GLITTER is also sustainable but is not a tipping token.

@uni-coin and @pixydust work the same way. I will do my best to explain the sustainability aspect for not just the tip bots but the rewards in the LPs as well.

Before tokens are minted they are backed by HIVE/swap,hive or Hive-engine assets. For the most part my brain calculates this as HIVE/HP (or HSBIDAO) but you get the jist. Once tokens are minted the backing tokens remain in the account for buybacks. I have regular and guaranteed buybacks on all my tokens so assets backing the tokens need to be held.

In the case that the tokens are backed by hive-engine tokens, those tokens are sold/swapped for swap.hive for buybacks. Once tokens are bought back, some are burned, some are recycled back to the tip bots or used as rewards for the LP.

I also use assets to balance the LP in case they ever go off balance I keep the value within 10% of the token pair usually it's within 1-2% to keep the price relatively stable. The goal is to have the token pair be 1:1 but there is some variance based on market activity.
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The tip bots work differently than other tip bots. Instead of folks needing to hold a certain amount of tokens to use the tip bots, folks delegate HP in increments of 25 hp per call per day to back new minted tokens through curation. Delegations are NOT for upvotes, just to use the tip bot. Both tip bots pay out to the sender and receiver. The PIXYDUST bot slightly favors the sender.

This allows new tokens to be minted and paid for through curation earnings as well as post earnings on the accounts. This keeps the token sustainable and solves the problems I see with a lot of tipping tokens which is oversaturation/hyperinflation.

Both tip bots tip an additional token to both sender and receiver. The UNICOIN bot tips UNICOIN and CENT. The PIXYDUST bot tips PIXYDUST and HSBIDAO. As of right now both bots are completely self sustaining meaning they generate enough funds to afford for the token distributions on the bot accounts themselves. The CENT tokens mainly come from LP rewards from being in the CENT pool but I have been buying some with earnings lately mostly to increase the holding in the CENT LPs to generate more CENT daily.

The HSBIDAO tokens are generated through div earnings. I made sure to acquire enough tokens to make that possible. The @pixybot also now purchases PIXYDUST via the LP to top off the balance as needed. That account also earns PIXYDUST tokens from being in the LP

Both tip bots are stocked right now with enough tokens to cover over a year worth of tips at current distribution rates in addition to being self-sustaining.

I also maintain LP rewards for both tokens. At first some of these rewards came from outside sources to get things going, but these rewards are now self sustaining as well. I top off the rewards periodically to maintain a standard APR %. Those tokens come from post earnings, curation and other LP rewards.

It gets better tokens are not just backed on a 1 :1 ratio, I lost count, but on average, there are 3x the assets backing the tokens than tokens in circulation for EACH token account. This ratio is increasing as tokens are burned and HP and other assets increase. I only mint tokens when they are needed and I burn tokens as frequently as it makes sense to.

Not only is it sustainable, it's scalable. I hope this explains how things work. Let me know if you have any questions.