JustMoney: Time to take the next step
Dear community of JustMoney,
I wanted to write this article so we could easily let everyone know everything we want to say, because this time there is a lot to tell.
We have recently made a discovery that affects (and has been affecting) greatly our token and all the tokens on Tron Network that support taxation/fee mechanism.
I will split this article into two sections — 1. the problem and 2. the solution.
The Problem
There are several swaps where we are currently listed: JustSwap, Uswap and Iswap. With the 2 latter ones we had an issue (that was already known by our community members) which is that their router contract does not support tokens that have taxes/fees (they use code from Uniswap/PancakeSwap V2.0 and taxed tokens support came only with v2.02).
We had to turn our taxes down to 0 % for those swaps in order to list us there. The problem is that having 0 % tax in some places and not others, is unfair to our community, which is why we balanced it in a way that we had the most liquidity in JustSwap and on the others we kept less liquidity to maintain higher price impact.
In JustSwap it seemed that the taxation was working properly since people were always getting more passive income every time a transaction was made there. Their contract is using an older version of Uniswap/Pancakeswap — version 1.
All looked good but then we discovered something that shocked us. We noticed that when people sell on JustSwap, they receive the full amount of TRX for the sale (meaning the sells are actually tax-free for the user).
If the seller gets full amount for their sell, where is the passive income coming from then?
When a person sells, let’s say 10000JM, the tax will be taken out before it enters the swap, meaning that the LP pool will get 9100 JM.
The issue is that the amount of TRX that JustSwap will send to the person is equivalent to 10000JM value and not to 9100 JM. This means that on every sell transaction we lose 9% of the transaction value.
What does that actually mean and how does it affect us?
The tax in this case is actually paid by the liquidity providers: JM and also those who’ve added liquidity there. This means that all the liquidity providers are actually losing instead of gaining. Since there are more TRX coming out from the pool than value of JM that it goes in, it is constantly pushing the price down and the size of the LP pool decreases.
You might have noticed that we’ve been quite busy and haven’t had too much time for chats etc. With this tax problem at our hands, we had to act fast and find a solution quickly. Solving this issue also gives us an opportunity for additional business since we are not the only token suffering from it. Most likely the other tokens on Tron with taxation functionality don’t even know that this is happening, but the issue is a serious one, this will eventually drain the LP and hence push the price down.
Executive summary: currently all tokens with a transaction tax on the Tron Network have TAX FREE sells and when transacting on JustSwap the liquidity pool is losing money on every sell transaction and pushing the price down.
We have created another article with more in-depth explanation and proof of the issue. Read it here.
The Solution (and the opportunity)
The only option (that we saw) to overcome the issue was to actually create our own swap that will support tokens with fees/taxation.
We also realized that this creates an opportunity for us to be first ones in Tron to fix the issue. There are now other tokens also facing the same problem, without even knowing about it. After this article the news will surely spread to them as well. With a draining LP, the LP providers are losing money on every sell transaction and the token prices are decreasing. This will force them to act quickly and as soon as possible find a provider who can stop this happening.
We also noticed some bugs / missing functionalities in swap platforms on BSC and ETH chains like Uniswap and Pancakeswap. We fixed those issues in our swap.
We are the only swap platform (at least that we know of) where the transactions for adding and removing the liquidity can be set tax-free. Normally those transactions are taxed as well and it discourages people to provide any liquidity.
Let us introduce you to the JustMoney.exchange:
This will be our first real product of our product family and a game-changer. It is the first product that will bring us an external revenue stream. From each swap that people make on our swap platform we will collect a fee. We will use those fees periodically to buy JM from the pool and then burn them: increasing the price, growing TRX amount in the LP pool and decreasing supply at the same time.
We will immediately move most of our liquidity to JustMoney.exchange swap whilst still leaving some in the other swap platforms.
We will also have a component (widget) for other projects to add on their own website.
This will allow any of their users to buy their token directly from their site. It will make it easier for us to offer the swap to others projects.
Later, we will also make our swap platform available for use on the BSC and ETH networks.
This swap product is not just one product, but actually an important part of the foundation for our whole product family. We have secured domain names like justmoney.store, justmoney.exchange, jmswap.io, justpayments.io and justcheckout.io. The same codebase and design will be utilized in our other products.
Next steps to grow our product family
We have renamed our social media accounts to JustMoneyIO, removing the TRX from the end. One of our next goals will be to update our Token Contract to support bridging JM to other chains. At a later stage when we are ready, we will release a new contract with the support of bridging and we will create the same token on BSC and Ethereum chain as well.
The total supply between all the chains will stay the same so it won’t affect our price.
We will build a bridge where anyone can swap JM between all 3 chains. This will keep the value of JM close to the being the same.
Once we have this in place we will have the ability to grow our community immensely and immensely enabling us to become a project that can really create an impact in the crypto landscape globally.
For all Tron fans, this does not mean that we will be moving away from Tron, it actually means that we will be introducing Tron to the global crypto community.
The payment systems on our roadmap will be using Tron network because of its speed and smaller fees.
Best,
Tobias Silverhawk and the JustMoney team
Read also: Explanation and proof of the issue with taxed tokens on Tron
