Anti-whale mechanisms on Polygon: Avoiding pump and dump

The concept of "whales" in the cryptocurrency ecosystem refers to individuals or entities that hold large amounts of a particular token.

While the presence of whales can bring certain advantages (many token creators pact with whales to increase their marketcap), they can also pose risks to the stability and fairness of a token's ecosystem.

To address these concerns, several anti-whale mechanisms have been implemented, which can be resolved using the anti-whale tool at Smithii.

In this article I will tell you about anti-whaling mechanisms and then we will look at some potential positive aspects of having whales in your token ecosystem.

Anti-whaling mechanisms

The main and most widespread anti-whaling mechanisms are based on setting a maximum for token transfers.

Setting a maximum limit on the number of tokens that can be transferred in a single transaction helps prevent drastic price movements, but there are also other types of mechanisms:

1. Ownership Limits: Setting a maximum percentage of the total token supply that any one address can hold ensures a more equitable distribution of tokens. This prevents whales from having excessive power over the token ecosystem.
2. Temporary locked Contracts: Using smart contracts to lock tokens for a specific period can prevent whales from selling large quantities of tokens in the market simultaneously. This ensures a more gradual release of tokens, promoting price stability.

Anti-Whale configuration for your token

You can configure the anti-whaling mechanisms with the tool by Smithii tool by following the steps below:

1. Connect your wallet: Use the button on the top right to connect your wallet.
2. Select the token you created
3. Sets the limit per transaction: Indicates the maximum amount per transaction to limit the whales.
4. Set the limit per lock: Similar to the previous step.

Advantages of having whales in the trading of your token

I don't want to leave this post without explaining that there are also positive aspects of having whales trading your token.

So, keep in mind that it is not always a bad thing to have whales within your Liquidity Pool, since they may be the ones providing liquidity or a large part of it.

In addition, many people design programs and are very attentive to the movements of wallets detected as whales. This can cause that once a whale enters trade your token, many more people follow in its footsteps.

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Ale Watters

Industrial Engineer. Member of the Smithii's marketing team. Solana trader. Collaborator in the $SHRIMP memecoin launch.