What does it mean to be a reward token?
A reward token motivates users by rewarding them when they complete specific tasks. The most common example of this type of task is HODL, in which users are rewarded simply for holding tokens. It works by collecting a fee equal to a percentage of the tokens transferred for each transaction.
The tokens are then used to distribute dividends to current holders. As rewards, your token or another popular cryptocurrency, such as BUSD or DOGE, can be used.
What are the various types of reward tokens?
The most common reward tokens are reflection tokens. Users gain more of your tokens over time simply by HODLing the tokens in this mechanism. This is popular for a variety of reasons. To begin, it is extremely efficient because it employs a technique known as reflection. To keep things simple, Reflection does not require explicit distribution of reward tokens; instead, it adjusts the user's balance based on their current holdings, saving a lot of transaction gas. Furthermore, because you are distributing your own tokens, you eliminate the need to sell tokens in order to obtain BUSD or other tokens, which may cause the value of your token to fall.
Another type of reward token, known as "baby" tokens, has recently gained popularity, such as babyDOGE or babyBUSD. Owners of these tokens receive payments in DOGE or BUSD. While they consume more gas and require token exchanges to purchase BUSD/DOGE, investors find them appealing.
How do you go about creating one?
One method for creating such a token is to program it yourself. Both reflection and baby reward tokens are complex. To understand blockchain programming, create, and test such coins, a significant investment is required. Even after that, bugs in your token are likely to exist, allowing hackers to exploit it.
However, there is now a much easier way, thanks to the fantastic no-code platform Unicarve. Unicarve's BEP20 token generator platform enables you to create BEP20 tokens with modern tokenomics features such as BUSD or other token rewards, liquidity generation, marketing and charity wallets, and hyper-deflationary buyback. It not only allows you to create tokens on the Binance Smart Chain using modern controls, but it's also extremely simple to use and one of the most affordable token generation platforms available. To learn more, go to https://unicarve.app today.