BinStarter is a decentralized insurance protocol, a mining-style approval mechanism that claims to bring together projects and liquidity providers. The protocol is created to examine the projects according to specific criteria for thirty days and safeguard liquidity providers from possible damages against any negativities. The network aims to secure start-ups and liquidity providers from fraud with a decentralized protocol.
The popularization of the decentralized structure came along with some risks and caused damage to project owners or liquidity providers. As per its whitepaper, these risks include software errors, token and fund-related errors, cases arising from people and traders (overselling of tokens to users), and exchange-based cases (fake volume or price) that cause negative impacts on the growth rate of ecosystems. BinStarter hence created an insurance protocol that protects liquidity providers from probable fraud cases. The network acts as an approval mechanism like an "evaluation pool" designed to solve such issues without fundraising concerns of project owners. The asset features insured fixed swap pools, a clearing pool that offers a fixed price, fast, transparent, cheap exchange, and insurance coverage against a possible fraud case. The carried transactions seek to be fair, transparent, and secure and provide low transaction charges.
BSR is the utility token of BinStarter that is built on the Binance Smart Chain and runs on the BinStarter ecosystem. The importance and utility of the BSR coin depend on the holding of tokens and the holding duration. BSR token sets each holder's role in the ecosystem that creates the governing body of the protocol. BinStarter has burned 15,200,000 BSR coins. Cryptocurrency burning is when a fraction of tokens are sent to a wallet with no private key. This means the tokens are lost forever. Tokens are usually burnt to reduce availability and increase market value. The token allocations go to seed sale (20 percent), public sale (25 percent), private sale (20 percent), developer team (10 percent), marketing (10 percent), foundational reserve (10 percent), pool rewards (10 percent), and marketing (10 percent).
