g8kept Launches
All tokens deployed on g8keep are g8kept at the smart contract level immediately after deployment.
The g8keep snipe protection mechanism introduces several novel features to token launches that promote fair distribution over insider sniping, improve liquidity of tokens, and accelerate the memetic flywheel.
Protection Window - A period of time after launch that purchases will be subject to snipe protection.
Linear Distribution Without Penalty - As time elapses, the amount of tokens eligible to be purchased without incurring a penalty increases. This amount applies across all buyers and cannot be circumvented by using multiple wallets.
Early Snipe Period - Penalties are enhanced during the early stages of snipe protection to allow for greater distribution of tokens.
Penalty Tax - Buyers that exceed the max buy without penalty will incur a penalty that increases based on the amount of tokens purchased beyond the expected balance of the pool. During the Early Snipe Period, the percentage out is raised to a large exponent that decreases linearly. After the Early Snipe Period, the percentage out is squared. Penalty taxes rebase the linear distribution of tokens without penalty to allow the continued distribution of tokens.
Tokens are released for purchase without snipe protection penalty linearly during the snipe protection window and penalties increase exponentially when exceeding the expected balance of the Uniswap V2 Pair.
These features prevent insiders and snipers from accumulating large positions early, promote price discovery by allowing users to accept penalties to buy ahead of schedule while still limiting the amount that can be accumulated early, and allow for rewards through [redacted].
There are 3 parameters passed to every g8keep token smart contract that play a factor in our snipe protection:
_snipeProtectionSeconds: The total amount of time (in seconds) that snipe protection will be enabled for. For the initial g8keep launch, this is set to 14400 (4 hours)._heavySnipeSeconds: The total amount of time (in seconds) that heavy snipe penalty is enabled. For the initial g8keep launch, this is set to 7200 (2 hours)._heavySnipeExponent: Starting exponent for heavy snipe protection. For the initial g8keep launch, this is set to 60.
Calculating Purchases That Incur Penalties:
The following formula is used to calculate the expected tokens out for a buy that exceeds the maximum fair buy:
As mentioned above, we have a _heavySnipeExponent parameter. This exponent starts at the initial set value, which in our initial launch's case, is 60. This exponent linearly decreases to 2 over the course of the _heavySnipeSeconds duration.
Essentially, the earlier after a token is deployed, the larger your penalties are, assuming you attempt to do a purchase that exceeds the current maximum buy without penalty.
Let's see it in action...
A user attempts to purchase 20M tokens (20% of the total supply) from a brand new token with 100M starting tokens in the Liquidity Pool.
Let's assume they tried to do a buy this large immediately, where the current expected pool balance is 99M tokens, and the current Snipe Exponent is 60.
Original Attempted Purchase Amount: 20,000,000 Tokens
Actual Tokens Received: 16 Tokens
Penalty Incurred: 99.99992%
Tokens Sent To Penalty Receiver: 19,999,984
g8keep Penalty Receiver:
Penalty Tokens are immediately transferred to the g8keep Penalty Receiver smart contract.
These tokens are locked, and will be used for [redacted]. These tokens are not owned by g8keep and will be used to foster the life of the token on an ongoing basis.
(We will be announcing the mechanics of the Penalty Receiver at a later date)
More Examples...
Example 1:
A token with 100,000 tokens in the initial LP and snipe protection time of 60 minutes will have 25,000 tokens available to purchase without penalty after the token has been deployed for 15 minutes for an expected LP balance of 75,000 tokens.
A buyer that attempts to purchase 62,500 tokens would result in a 37,500 token balance in the LP which is 50% of expected balance.
Their adjustedAmount1Out would equal 62,500 * 0.5^2 = 15,625 tokens (75% penalty).
Instead of attempting to buy 62,500 tokens, the user should buy the 25,000 tokens that are available without snipe protection to avoid penalty.
Within the regular snipe protection window there is also a heavy penalty window. During the heavy penalty window the exponent for applying the penalty starts at a higher value and decreases linearly until it reaches the base exponent of 2.
Example 2:
Using the example from above with a heavy snipe window of 10 minutes and a starting penalty exponent of 12.
After 6 minutes, there will be 10,000 tokens available to purchase, expected balance 90,000 tokens, and the snipe penalty exponent will be 6.
A buyer that attempts to purchase 55,000 tokens would result in a 45,000 token balance in the LP which is 50% of the expected balance.
Their adjustedAmount1Out would equal 55,000 * 0.5^6 = 859.375 tokens (98.5% penalty). Instead of attempting to purchase 55,0000 tokens, the user should buy the 10,000 tokens that are available without snipe protection to avoid penalty.
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