Daddy Doge is a deflationary cryptocurrency used as a value storage device on Binance's smart chain. The tax on every transaction is used to distribute tokens to holders, boost funds in the marketing wallet, and add liquidity to the pool.

As a deflationary DeFi token, Daddy Doge is taxed 9 percent from every transaction. Daddy Doge's tax is intended to benefit the project as a whole by putting 3 percent in the liquidity pool for a stable price floor, 3 percent proportionally reflected by all DaddyDoge token holders, and 3 percent added to marketing/dev wallet to ensure success over the long term. The tax is also intended to discourage large token holders from transacting quickly and damaging prices.

According to its whitepaper, the Daddy Doge contact incorporates an automatic liquidity pool algorithm in its core logic. Each transaction contributes 3 percent to the PancakeSwap (a DEX) liquidity pool. When larger wallets sell their tokens at any time, one of the core goals is to reduce price impact. This algorithm reduces the price fluctuations seen in other tokens by reducing large price swings. With tokens and BNB added to the liquidity pool, a more stable price floor is created.

Because Daddy Doge holders receive 3 percent of each transaction, the token is deflationary. Forty-three and four tenths of a percent of the initial supply was burned in a dead wallet. As this wallet is not excluded from reflections, a proportion of it is added to the burn wallet over time, thus decreasing the circulating supply. Cryptocurrency is burned to ensure several tokens are permanently removed from circulation to elevate the token’s price by bringing down supply against demand.

In a dead wallet, tokens are entirely lost and are effectively burned. When demand is high enough, lowering the circulating supply can increase the token's price over time. The circulating supply is deflated at a safe rate, which promotes growth.

The platform's main focus was to create a level playing field for all participants in presale and launch. The presale was hosted on the DxSale platform with a hard cap of 500BNB, which was completely sold out. A total of 100 percent of the PreSale liquidity was added to the PancakeSwap liquidity pool and locked for five years.