🖇️Risk prevention mode

The LGDAO model solves the problem of market slump.

1. Mechanism background

More than 80% of the reasons for the failure of most previously successful projects are that a large proportion of token holders sell tokens, resulting in a rapid decline of the disk, a total sell-off in the disk, and finally a complete loss of faith, resulting in the project's failure.

2. Mechanism principle

LGP DAO will incorporate a risk prevention mechanism into the LGP Token code agreement and use contract to control human greed and fear. The risk prevention mechanism will be activated during the decline of LGP Token when the decline is greater than or equal to 20%, 30%, and 50%. If the money holder continues to sell his tokens, he will incur a maximum loss of 32% in interest.

LGP Token Risk Prevention Mechanism

1. When the 20% risk prevention mechanism is activated, LGP holders will sell and destroy 5%, including 2% tax on normal transactions, and keep the remaining 2% in the pot (penalty tax), for a total of 9%.

2. When the risk prevention mechanism of 30% is activated, if LGP holders continue to sell LGP, 10% will be sold and destroyed, including the 2% tax of A's normal transaction, and 5% will be returned to the pot (penalty tax), for a total of 17%.

3. When the 50% risk prevention mechanism is activated, LGP holders will sell and destroy 20%, including 2% tax on normal transactions, and return 10% to the pot (penalty tax), for a total of 32%.