What makes Baby Doge Coin unique?
The main gimmick of Baby Doge Coin is a 10% fee on every trade. If you want to sell 1 million BABYDOGE, you'll pay $100,000 for the transaction fee. That fee gets split in half, with 5% going back to all the existing holders of Baby Doge Coin and the other 5% being used to provide liquidity for trading.
Simply put, if you hold Baby Doge Coin, you earn a cut of every trade. If you want to trade yours, then you'll be charged 10% of the transaction. Baby Doge Coin isn't the first crypto token to do this since several new cryptocurrencies launched in 2021 with the same type of fee.
There's nothing that sets Baby Doge Coin apart from those other cryptocurrencies. It shot up in price based on its name and a strong social media marketing campaign.
Where Baby Doge Coin came from
Baby Doge Coin launched on June 1, 2021. Unfortunately, there isn't any information about the development team on the website or in the white paper. While it was initially created as a joke, it has amassed a large community of supporters.
Although Baby Doge Coin had an initial supply of 420 quadrillion tokens, almost 43% (180 quadrillion) were burned, which means they were destroyed. Since then, the development team has continued burning tokens monthly. These burns are a way to manage the supply and potentially increase demand, but they don't always coincide with price increases.
How Baby Doge Coin works
Baby Doge Coin is a BEP-20 crypto token, which means it's built on the Binance Smart Chain (BSC). One of the benefits of the BSC is that it offers greater speed and efficiency than many other blockchains. This allows for low gas fees (transaction fees) and processing in as little as five seconds.
As noted above, the Baby Doge Protocol charges a 10% fee on every transaction. It redistributes half of that fee (5% of the original transaction) to all existing holders of Baby Doge Coin in what's called a reflection.
The other 5% is split into two equal parts again. Half remains Baby Doge Coin, and the other half is converted to Binance Coin (BNB -2.07%). Both tokens are then deposited to a BABYDOGE/BNB liquidity pool on PancakeSwap (CAKE -3.13%), a decentralized crypto exchange. This helps keep the pool funded so that people can trade between Baby Doge Coin and Binance Coin.
