📒Details of the Decentralized Price Regulation Mechanism

Decentralized Price Regulation Mechanism within CZX Finance

Key Components

🔹AMM Sales Limitation: The CZX Finance protocol imposes a prohibition on direct CZX token sales through Automated Market Makers (AMMs). Participants can exclusively acquire tokens through bonding processes or a hybrid approach involving bonding and liquid staking.

🔹Price Regulation Technique during Sales: When users engage in CZX token sales through the platform interface, a specialized price regulation mechanism comes into play. This method strategically extracts a portion of liquidity and executes compensatory buybacks to counterbalance any potential impact on the token's price due to sales activities.

🔹Compensation Parameter: A critical parameter, this variable dictates the percentage of the sale amount allocated for compensatory buybacks. This parameter ranges from 0% to 25%, where 0% implies no compensation, and 25% signifies that 25% more funds will be allocated for buybacks than the actual sale amount.

🔹Community Governance: Significant parameters, including the compensation level and the authorization to lift restrictions on AMM sales, remain subject to change through a decentralized voting process led by the community.

Operational Framework

🔹Token Acquisition: Token CZX is exclusively attainable through bonding or a combination of bonding and liquid staking processes, reinforcing a controlled and community-driven token distribution model.

🔹Token Sale Dynamics: During token sales executed via the official platform interface, the system autonomously extracts a designated portion of liquidity, utilizing it for compensatory buybacks to maintain price stability.

🔹Parameter Adjustments: The community actively participates in the governance of key parameters. Through decentralized voting processes, participants can influence critical aspects such as the compensation level or the potential to transact through AMMs.

The deployed price regulation mechanism within CZX Finance crafts a distinctive ecosystem where the CZX token's value is anchored by robust rules and dynamic interactions. This approach not only ensures decentralized control but also presents adaptability, allowing the community to play an integral role in the management and regulation of the system. The resultant structure fosters the development of a sustainable and transparent pricing mechanism, precisely tailored to accommodate the evolving needs and preferences of the community within the CZX Finance ecosystem.