What is a BEP20 Token and why should you create one?
If you're thinking about creating your own cryptocurrency token, a BEP20 token is a good option.
You must deploy a cryptocurrency token on a blockchain in order to launch it. For your token, blockchain functions as a distributed ledger that keeps a verified record of all transactions. No one can truly trade or utilize your token without this transaction database. Ethereum is the most widely used blockchain, however, it is experiencing congestion, poor transaction rates, and expensive transaction costs as a result of rising transaction volumes. It can cost as high as $5 to $10 to complete a basic token exchange on the Ethereum network. Binance Smart Chain (BSC) is a blockchain platform that uses similar technology to Ethereum but has considerably decreased transaction fees thanks to a few tweaks. It can also handle a greater number of transactions at a faster rate.
With its minimal transaction costs and excellent speed, BSC is presently the fastest growing blockchain, attracting investors. When you wish to use BSC to deploy your own token, you must first create a BEP20 token. These BEP20 tokens, if issued, might be used as a digital currency for a variety of purposes, ranging from payment of goods to community awards.
What should you remember when making your BEP20 token?
Okay, so you're all eager to make your BEP20 token, but how do you go about doing it? Let's take a look at some of the questions you could be thinking about:
1. What does it mean to create or generate a BEP20 token?
Creating a BEP20 token, simply put, is just entering all of the token characteristics in accordance with the BEP20 specifications. This specification is written in the Solidity programming language, and the full specification is referred to as a smart contract. Put a line of code string public name = "MyToken" in your contract code, for example, to give the name of your token. Some of these criteria are straightforward, such as name, while others, such as those discussed in the following section, are far more complex.
2. What are the most recent best practices for BEP20 token creation?
Apart from basic requirements such as the token's name and symbol, the state-of-the-art BEP20 tokens also include:
Anti-Whale Mechanics: You don't want someone to simply hoard all of your tokens, therefore setting a restriction on how much a wallet may contain is critical. You also don't want to make a large sell transaction that will cause your token prices to plummet. This necessitates setting a token's maximum transaction limit. These restrictions prevent huge holders, often known as whales, from manipulating your token.
Rewards: You want to attract more and more investors to your token, and holding rewards are a great incentive for them. You can deduct a small fee from all transactions, say 2%, and give it to your current holders to encourage them to hold the tokens. This is similar to how stocks pay out dividends, except it happens considerably more quickly and in a bigger percentage.
Automatic Liquidity Generation: Made popular by Safemoon, automatic liquidity generation is meant to offer long-term stability. A small fee is levied for each transaction, which is used to add liquidity on exchanges like PancakeSwap. This increases the liquidity pool size, improving the price stability and supporting higher trading volumes for the token.
Buyback: This is the latest trend started by few tokens like EverRise. In the stock market, Buyback refers to a company's stock being purchased back on the open market by the company, increasing the stock's value. Similarly, when the market is seeing selling, the fees received by the token contract are used to buy back and burn tokens. Not only more value (BNBs) is added to the liquidity pool due to these buying transactions but the overall circulating supply of tokens is also decreased by the burn, rapidly raising the price and preventing large dumps.
Honeypot-Free Specification: Many scam tokens are honeypots, allowing investors to buy but not sell tokens. All of the money invested in such tokens becomes stranded. Many tools have been developed to detect honeypot tokens, and if you are not diligent in your BEP20 token definition, such tools may flag your token. As a result, a clear BEP20 specification is critical.
Specifying these controls in the smart contract is more complicated than naming your token.
3. How do I make a BEP20 token of my own?
Writing smart contract code that covers everything that a BEP20 specification requires is the most common technique to create a BEP20 token. To implement the smart contract on the BSC blockchain, you'll need to master Solidity programming. This may necessitate a large time commitment, resulting in a several-month delay in the launch of your token. Mudra Token Creator is a no-code platform to instantly create BEP20 tokens.
4. What are the benefits of using Mudra Token Creator?
The best way to create BEP20 tokens on Binance Smart Chain is to use Mudra Token Creator. No coding is required to create your token. Anti-whale mechanics, transaction fees, honeypot-free code, and hyper-deflationary mechanics with automatic liquidity and buyback - the best-in-class features are included in the token generated. All of this at a very affordable price. Not only that, but Mudra Token Creator also provides free additional services such as setting up a liquidity pool.