FAQ
Frequently Asked Questions
How does the 1% fee work?
Every trade through the $Dongzhi pool generates a 1% fee via the PancakeSwap V3 AMM. This fee is collected periodically by the contract and split into two equal parts. The fee structure is predictable, consistent, and fully on-chain, ensuring that liquidity grows and market structure improves with every cycle.
Breakdown:
50% → Used for buyback (WBNB → $DONGZHI)
50% → Stored as WBNB reserves Both parts will later be used together to form balanced liquidity.
What triggers the liquidity cycle?
The system is designed to execute its cycle automatically every 10th trade. This prevents constant micro-adjustments and instead allows fees to accumulate into meaningful amounts before reinvestment. The tenth trade becomes the “checkpoint” where the system collects, splits, buys, and reinjects liquidity.
What happens during the cycle?
Once the cycle is triggered, the contract performs a multi-step reinforcement process:
Collects the 1% trade fees accumulated so far
Splits fees into two equal parts
Half becomes buyback fuel
Half stays as WBNB
Executes a buyback using 50% WBNB
Combines the newly bought tokens + the held WBNB
Injects them into liquidity as a balanced pair
This ensures liquidity grows evenly, with both assets increasing together.
Why is only 50% used for buybacks?
A 100% buyback system would create imbalance—many tokens but not enough WBNB to support liquidity growth. By using only half, the system:
pushes upward price pressure
collects fresh tokens
preserves WBNB for liquidity pairing
avoids creating an unbalanced pool
This results in smooth, sustainable liquidity expansion.
Why maintain WBNB before adding liquidity?
Because liquidity must be injected in balanced pairs. The buyback side gives the token half, but the pool also needs WBNB to match it. The system holds WBNB to ensure that when liquidity is added, it is properly balanced, strengthening the price structure instead of distorting it.
Does $Dongzhi burn tokens?
No. The buyback tokens are not burned — they are used as liquidity material. This ensures the supply remains stable and the pool grows in depth instead of shrinking through deflation.
Can the team divert fees?
No. The system is designed so all fee outputs are automatically routed into:
buyback execution
liquidity pairing
liquidity injection
There are no external wallets receiving any portion of the 1% fees.
Why every 10 trades?
Because fee cycles are more efficient when executed in batches. Doing it per trade would create unnecessary gas load and noise. With 10-trade batching:
fees accumulate more meaningfully
swaps have higher impact
liquidity injections are more significant
activity logs become clearer and easier to track
This creates a clean, predictable rhythm for the liquidity engine.
What happens if there are heavy sells or buys?
The fee system works identically regardless of direction. Heavy volume simply means more fees, which results in a stronger liquidity cycle once the 10th trade threshold is reached. The cycle strengthens the pool no matter whether the volume is bullish or bearish.
Is the liquidity removable?
No. Once added, liquidity is locked inside the contract-held position. It cannot be withdrawn or extracted, creating a permanent and fully transparent LP foundation.
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