tl;dr — Pseudoabflation for Dummies
What makes Pseudo different from every other deflationary protocol, even ones with treasuries implemented? It’s our distribution and dedication to post-launch fairness — a concept many DeFi platforms have struggled with and one that has yet to be provably solved. It’s our completely new mechanism known as PseudoAbflation. Pseudo because its kind of like deflation and inflation but really its there’s no change, just movement. Abflation because its Abstracted In/Deflation.
Assume for a second that there are 100 $PSEUDO in circulation.
WHALE CHAD sends 90 (!) Pseudo to DOUG.
DOUG receives 89.1 Pseudo and 0.9 Pseudo are burned (recall the 1% burn fee).
KAREN with her 10 Pseudo(10% of the protocol here), unrelated to that transaction and on the opposite side of the crypto world, gets her 10% of that 0.9 Pseudo burn from WHALE CHAD’s transaction. KAREN now holds 10.09 Pseudo — the original 10 Pseudo plus (0.9 burned Pseudo x her 0.1 ownership in the protocol). She didn’t have to claim or stake anything. By simply holding Pseudo in her wallet, they increased instantly as passive income.
But the key to all of this? The reason why YOU should care is because Karen’s account isn’t the only one going up thanks to WHALE CHAD paying DOUG for beer money. All accounts holding Pseudo go up. Instantly. With no need to claim tokens.
In fact, we actually oversimplified. Accounts performing the very same transactions triggering burns are also receiving part of the burn fee. So the burned Pseudo will even still appear in WHALE CHAD’s and DOUG’s accounts! DOUG in reality will get a fraction more than 89.1 Pseudo (adding his share of the protocol-wide burn fee) and yes, WHALE CHAD gets a tiny fractional rebate in the form of his share of the protocol-wide burn fee.
So now you understand how PseudoAbflation works, how it affects your transactions and your balance. Allowing you to get your fair share of the networks fees. Now you hopefully can see how this fundamentally flips the current inflation of central banks. Where the poor pay the rich through inflation, without receiving any of it to their own holdings. By redistributing the wealth generated through the fees fairly, all holders are incentivised to use a currency which isn’t inflationary since the actual circulating supply is contstant, isnt deflationary causing anyone to feel like the need to hold their money without spending it, and allows for wealth redistribution in a fair way.
We hope this first in our series of TLDRs has helped you understand the complicated mechanism of PseudoAbflation. Follow us for more explainers simple enough that a child could understand and for updates.
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