What are phantom tokens?
Phantom tokens are a concept that was coined by the developers at Diamond Hold, which are loosely based on the idea of bonus issues.
The basic definition is:
Phantom tokens are tokens that are temporarily taken out of the circulating supply, which will then be returned to the supply at a later stage.
They are managed using a protocol called phantomization. This is a decentralized protocol which takes a percentage of each $DHOLD transaction and “phantomizes” it. These tokens then get “materialized” back into regular $DHOLD at a later stage.
How does it work?
The phantomization protocol was created by the developers at DiamondHold and is built on top of the existing reflection system.
Each transaction is subject to a reflection tax, where a cut of the transaction is then “reflected” back to every existing holder based on a percentage of the total supply they own. Each holder automatically receives a portion of this, which is called the “reflection reward”.
The phantomization protocol takes that “reflection reward”, and phantomizes a portion of this based on your wallet tier.
Phantom tokens are effectively $DHOLD (they have a 1:1 value relationship) which exist inside your wallet, but you cannot see, access or trade them until they are materialized. The phantom tokens will materialize into $DHOLD each time your wallet advances a tier.
It is important to note that if you decide to make a sell, you will forfeit a portion of your phantom tokens based on the percentage of the balance that you sold.
Due to this, two wallets (a Tier 1 and a Tier 4) with the same amount of supply will mean that the Tier 1 wallet will have more phantom tokens than the Tier 4 wallet. This is because the Tier 4 wallet will have access to the full amount of $DHOLD, and not gain any phantom tokens. This means that they can access and trade their tokens before the Tier 1 wallet can.
Conclusion
If you have any questions or would like further clarification, please join the Discord or the Telegram and message one of the developers!
