Butter Token: An Ecosystem of Decentralized Governance and Charitable Rewards

What is Butter Token

Friends, imagine you have a special membership card in your hand. This card not only lets you enjoy certain benefits, but also allows you to participate in a community dedicated to “doing good.” In the world of blockchain, the “Butter Token” (abbreviated as BUTTER) is a bit like this special digital membership card. It’s not a standalone entity, but the second member of the “Milk and Butter” family—just as milk becomes richer with butter.

Simply put, BUTTER is a digital asset based on blockchain technology, operating on the Binance Smart Chain (BSC). You can think of BSC as an efficient, low-cost digital trading platform, like a busy but low-fee supermarket. BUTTER’s main target users are those who want to participate in cryptocurrency projects while also contributing to charitable causes. Its core scenario is to support charitable donations through transaction fees, and to allow holders to participate in project governance, deciding where these donations go.

A typical usage flow looks like this: you purchase some BUTTER tokens, and every time you make a transaction, a portion of the transaction fee is automatically collected. These fees are pooled into a dedicated charity fund. As a BUTTER holder, you can also vote to decide which charity organizations these funds should be donated to, such as “Food For Life Global” or “Action Against Hunger.”

Project Vision and Value Proposition

The vision of the Butter Token project is to use the power of decentralized finance (DeFi) to create a fun and meaningful way for token holders to give back to society.

The core problem it aims to solve is how to combine cryptocurrency trading activities with real-world social good, making digital assets not just investment tools but also effective channels for charitable donations. It acts as a bridge, connecting the wealth of the digital world with the needs of the real world.

Compared to similar projects, BUTTER’s uniqueness lies in its built-in charity donation mechanism and governance model. Many crypto projects may also engage in charity, but BUTTER makes charitable giving a core part of its tokenomics, and gives token holders the right to vote on donation destinations, enhancing community participation and transparency.

Technical Features

Butter Token is a BEP-20 standard token, which means it’s built on the Binance Smart Chain (BSC). You can think of BEP-20 as a “universal language” or “standard format” on BSC, ensuring that BUTTER tokens can be smoothly created, traded, and managed on this network.

Its technical features are mainly reflected in the design of its smart contract. Smart contracts are like “digital protocols” that automatically execute on the blockchain—once certain conditions are met, preset actions are carried out automatically. BUTTER’s smart contract includes the following key mechanisms:

• Auto-liquidity: Every time BUTTER tokens are traded, a portion of the fee is automatically converted into BUTTER/WBNB (Binance Coin) liquidity pairs and locked in the liquidity pool. This is like providing a constant “fuel” for market trading, ensuring smooth buying and selling of tokens and reducing the impact of sharp price fluctuations.
• Deflationary Mechanism: Although the whitepaper summary mentions deflation, the specific burn mechanism is not detailed in the available information. Typically, deflationary tokens reduce total supply by burning some tokens, which may increase the scarcity of the remaining tokens.
• Staking Rewards: If you hold Milk tokens (another token in the Milk and Butter ecosystem) and stake them (Staking—you can think of it as locking up tokens to support network operations and earn rewards), you can receive a portion of the rewards from BUTTER transactions. This encourages users to hold and support the ecosystem long-term.
• Governance Function: BUTTER token holders have voting rights and can participate in deciding important project matters, especially the allocation of charity donations. This is a form of decentralized governance, meaning community members collectively manage the project rather than a few centralized entities.

Tokenomics

The economic model of BUTTER is designed to support charitable causes through transaction fees and incentivize community participation.

Basic Token Information

• Token Symbol: BUTTER
• Issuing Chain: Binance Smart Chain (BSC), BEP-20 standard
• Total Supply: 1,000,000,000,000 BUTTER (1 trillion tokens)
• Current and Future Circulation: CoinMarketCap reports the project claims a circulating supply of 0 BUTTER, but CoinMooner shows a circulating supply of 999,989,006,892 BUTTER. There is a clear discrepancy in this data that needs further verification.

Token Utility

The main uses of BUTTER tokens include:

• Charitable Donations: 5% of every transaction fee goes to the charity fund, with BUTTER holders voting on which charities to donate to.
• Governance: Holders can participate in decentralized project governance and vote on important decisions.
• Staking Rewards: Milk token holders who stake Milk can earn rewards from BUTTER token transactions.
• Liquidity Provision: 2% of transaction fees are automatically added to the BUTTER/WBNB liquidity pool, enhancing token liquidity.

Token Allocation and Unlock Information

According to available information, BUTTER token transaction fees are distributed as follows:

• 5% for Charity: This portion is collected for donation to charity organizations.
• 2% for Liquidity: This portion is automatically added to the BUTTER/WBNB liquidity pool.
• 2% for Milk Holder Staking Rewards: This portion is distributed to users who stake Milk tokens.
• 1% for Operations and Marketing: This portion is used for daily operations and marketing of the project.

Details on initial token allocation and unlock plans are not found in the currently available public information.

Team, Governance, and Funds

Core Members and Team Characteristics

Public information does not clearly list the names or detailed backgrounds of Butter Token’s core team members. The project emphasizes its community-driven nature and cooperation with charity organizations.

Governance Mechanism

Butter Token adopts a decentralized governance model. This means BUTTER token holders can influence project decisions through voting, especially regarding the allocation of charity donations. This model aims to increase transparency and community participation, allowing members to collectively shape the project’s direction.

Treasury and Funding Runway

The project supports operational and marketing expenses through a 1% fee collected from each transaction. Additionally, 5% of transaction fees go into a charity wallet for donations. Specific details about the size of the project treasury and funding reserves (runway) are not found in the available public information.

Roadmap

According to a report from December 2021, the Milk and Butter team released the Alpha version of its NFT game and announced future goals. This indicates that the project had early plans related to NFTs and gaming. However, a detailed timeline of historical milestones and future plans is not listed in the available public information.

Some information mentions that Butter Token has migrated to the Milk and Butter ecosystem. This may be an important historical event.

Common Risk Reminders

Investing in any cryptocurrency project comes with risks, and Butter Token is no exception. Here are some common risk reminders:

• Market Volatility Risk: Cryptocurrency market prices are highly volatile. The price of BUTTER tokens may be affected by market sentiment, macroeconomic factors, regulatory policies, and more, with the possibility of significant rises or falls.
• Liquidity Risk: Although the project has an auto-liquidity mechanism, if trading volume is insufficient, token liquidity may still be low, making buying and selling difficult or causing large price slippage.
• Smart Contract Risk: Smart contracts may have vulnerabilities. If attacked or flaws are found, it could lead to loss of funds. Although the project has an auto-liquidity mechanism, whether its smart contracts have been independently audited is not clearly mentioned in the available information.
• Project Execution Risk: There is uncertainty as to whether the project team can execute the roadmap as planned and realize its vision.
• Regulatory Compliance Risk: The global cryptocurrency regulatory environment is constantly evolving, and future policies may impact project operations and token value.
• Information Transparency Risk: Lack of transparency about the core team, untimely updates or lack of detail in key documents like the whitepaper, can increase investment risk. For example, the circulating supply of BUTTER differs across platforms, which investors need to verify themselves.
• Not Investment Advice: This introduction is for informational sharing only and does not constitute investment advice. Before making any investment decisions, be sure to conduct thorough independent research (DYOR) and consult a professional financial advisor.

Verification Checklist

Before delving into Butter Token, it is recommended that you verify the following information yourself:

• Block Explorer Contract Address: Confirm the official contract address of BUTTER token on Binance Smart Chain (e.g., 0x0110ff9e7e4028a5337f07841437b92d5bf53762), and check its transaction activity, holder distribution, etc. on BscScan and other block explorers.
• GitHub Activity: Look for the project’s GitHub repository (if public), and assess code update frequency and community contributions for development activity.
• Official Website and Social Media: Visit milktoken.net, as well as the project’s Twitter, Telegram, and other official social media channels to learn about the latest developments and community atmosphere.
• Audit Report: Check whether the project has undergone third-party security audits, and carefully read the audit report to understand the smart contract’s security assessment results.
• Whitepaper: Read the project’s full whitepaper (https://www.milktoken.net/files/whitepaper.pdf) to understand its detailed technology, economic model, and development plans.

Project Summary

Butter Token (BUTTER) is a BEP-20 token in the “Milk and Butter” ecosystem, combining decentralized finance innovation with charitable causes. Through its unique transaction fee allocation mechanism, BUTTER aims to provide a sustainable source of funds for charitable donations and empower token holders to participate in charity decision-making through governance. It features auto-liquidity, staking rewards, and governance, operates on Binance Smart Chain, and is committed to building a community-driven philanthropic ecosystem.

However, like all emerging crypto projects, BUTTER faces risks in market volatility, smart contract security, project execution, and regulatory compliance. Before considering participation, it is strongly recommended to conduct comprehensive independent research, carefully review its whitepaper, community activity, audit reports, and fully understand the risks involved. Remember, this is not investment advice; any investment decision should be based on your own judgment and risk tolerance.

For more details, please conduct your own research.