Below are some of the frequently asked questions we receive regarding ACYC - we aim to outline the answers to those here.
Q: Is there a tax on transfers of $ACYC?
A: Yes, any transfer of ACYC experiences the 10% sales tax coded into the contract! This is so people don't circumvent reflecting to other holders and filling the treasury with OTC sales. So if you want to move it elsewhere, you'll just need to take some time to reflect afterwards.
Q: If the team is talented at making money, why bother creating ACYC rather than simply growing their own wealth?
A: Working together as a community, we can grow our treasury to an amount unattainable by any individual person or small team. Having the backing of the $ACYC token to help fund the treasury provides a consistent flow of revenue we can compound with investments. With a sufficiently large treasury, it becomes possible to generate consistent, lucrative, and long term yield at a greater scale than would be possible alone or within a small team. We would also like to share our abilities and tool suites with the community of people involved with ACYC - providing means for exposure to these volatile markets with less effort and knowledge than investing individually.
Q: How do reflections work on a technical level, without needing staking or claiming?
A: Many smart contracts that operate tokens will store within the smart contract a balance of tokens for each address that holds the token. Then when a wallet, DEX, or any other system needs to understand that balance, the smart contract will look up the amount of tokens held by that address. However, ACYC’s contract operates differently. When the smart contract was deployed, the developer team created an impossibly large number (think the amount of atoms in the universe to the power of the amount of atoms in the universe), which is called the “total reflections”. When someone purchases $ACYC, our smart contract does not store the amount of tokens they purchased as many smart contracts do. Our smart contract stores the total tokens purchased multiplied by the ratio of the total tokens in circulation to the impossibly large number (which we call “total reflections”).
Then when a wallet, Uniswap, or any other system needs to understand an addresses’ balance we look up that saved amount of reflections for the address, and apply the ratio of the total tokens in circulation to the total reflections. In order to perform a “reflection” (either automatically or manually), what the smart contract will do is to take the amount of tokens to be reflected and it will apply the magic ratio of total tokens to total reflections. This will provide the amount of reflections to apply. Then it will subtract this number from the “total reflections” number. In turn what happens is that the magic ratio of total tokens to total reflections is altered such that everyone’s balance goes up by an amount proportional to their holdings at the time the reflections were applied!
The tokens in the liquidity pool will reflect, so the whole liquidity pool will get more $ACYC over time. But your percentage of the pool is what matters. If you have 1% of the pool and you withdraw you'll get 1% of the total tokens, which will include reflected tokens.
Q: What is the relationship between the treasury size and $ACYC's price?
A: There is no direction correlation-gains in treasury size do not necessitate upwards price action on the $ACYC token. However, treasury size is a key metric in the health of any IaaS or FaaS protocol. The larger the treasury size, the larger yield being produced to reflect back to holders. And in ACYC's case, a sufficiently large treasury size will allow us to manually reflect on a daily basis. So in this way, the treasury size is a major component of the intrinsic value of the $ACYC token. A large, healthy treasury means there is much yield to be reflected, and therefore accumulating the token becomes attractive in order to secure that yield, and therefore that should lead to buying pressure from investors who want a piece of that yield.
Q: Does ACYC only invest in cryptocurrencies and NFTs?
A: Currently, we see the most opportunity in cryptocurrencies and NFTs, and thus have exclusively focused our investments on these sectors. However, philosophically, we are "profit maximalists"-meaning we will direct our investments towards whatever sectors stand to yield the most profit. Because of this philosophy, we remain openminded about exploring any sector and if our analysis indicates we should begin allocating our portfolio towards it, we are prepared to take those steps.
Q: How can I get involved with ACYC?
A: We have a robust community that lives on Discord, Twitter, Telegram, and beyond that would love to welcome you in! Additionally, we welcome good feedback and suggestions, so feel free to reach out in our "Suggestions & Ideas" channel in our Discord and we will be sure to read it. Beyond that, if you are interested in contributing as an ACYC team member, there is an application you can fill out on this page.