Vanilla Bet: A new dawn, a brand new token protocol

The infamous Ethereum Chain vanilla token was born in an era of trending hyper deflationary tokens built to combat inflationary pressures, mainly influenced by events in the centralised world whereby governments were using quantitative easing (essentially printing money) to help boost failing economies.

Vanilla Network at the time of DeFi summer, in August 2020, had a further counter measure. Instead of simply producing a deflationary token, why not also introduce demand side protocols? Therefore, going back to the founding principals of economics a reducing supply & increasing demand should in theory result in a higher price.

Thus, the VNLA token was born, a deflationary token whereby each transaction would burn 2.5% from supply, and 2.5% would go to a constant staking pool (known as the vanilla staking pool) for users to obtain rewards. Although extremely innovative, the protocol had distinct limitations:

(1) Liquidity provisioning on decentralised exchanges would become squeezed through buying & selling.

(2) High rates of deflation also induced high fees. Meaning trading volumes were at times marginalised and limited to decentralised exchanges.

The New Vanilla Bet Token ($VNLA)

Many new defi protocols have been developed, but none capturing all the elements required to create a sustainable ecosystem. The Vanilla Bet token (ticker: $VNLA) has been created to capture all the vital ingredients for a sustainable & successful ecosystem alongside its innovative but simple to use betting and staking dApps!

Liquidity provisioning. All decentralised exchanges require token & associated stable token liquidity in order to produce a healthy trading environment; thus eliminating the need for manual market making as seen on centralised exchanges as no clearing house is required to facilitate a trade. However, without sustainable benefits for users to add liquidity can cause substantial drainage from excessive buy or sell orders in the liquidity pool, this impairing the trading environment. The new $VNLA has an integrated smart contract that allows for a 0.5% fee on each buy & sell order to be automatically be added to the liquidity pool. Thus, formulating an automated liquidity adding mechanism to help facilitate a stable trading environment.

Deflation. As seen in the recent gas supply crisis, global economies are experiencing widespread inflation. Inflationary pressures can reduce the spending power of fiat currencies and therefore, placing pressures on various monetary policies to control potential economic uncertainties. The Vanilla token has gone one step further, and has an auto-generated burning mechanism integrated into the token protocol. With each transaction, 0.5% is burned from supply forever. With supply under control, this is likely to “help” absorb significant demand side shocks.

Ecosystem sustainability. Many gaming, or play-to-earn tokens chose to list a secondary token to allow for a sustainable economy. From research performed, this is likely to create inflationary pressures as more tokens are minted for game players to use. Also, it leaves the host token as a ‘governance’ token leaving it almost redundant in the ecosystem as real utility is introduced. In order to combat sustainability issues we have created an ecosystem recycling system.

From each transaction, a 0.5% fee will go to the ecosystem wallet. Whether it’s interacting with our staking or betting dApps. These fees will be recycled back into the system through various staking rewards or the creation of strategic partnerships. Creating a healthy and stable ecosystem — very much like a community fund.

To Summarise the initial fees:

Burn fee: 0.5%

Liquidity fee: 0.5%

Ecosystem fee: 0.5%

Reflationary benefits: 1%

A total of 2.5% will be charged initially per transaction.

What about Vanilla Staking? 🤷‍♂️

High yielding staking pools will be introduced soon after listing. These staking pools will also provide various additional benefits which will be of benefit for the Vanilla community. More details coming soon!