Place/Date: - July 8th, 2022 at 9:03 pm UTC · 4 min read
Source: Oil Club
Oil club is a smart contract miner that adheres to the oil and gas sectors’ norms. Club members can earn up to 14 percent in daily prizes and engage in continuously developing techniques to maximize earnings based on market conditions. Ziyen Energy pioneered the notion of oil sector tokenization through the ZiyenCoin Security Token Offering.
Ziyen Energy founded Energy Tokens in 2019 in conjunction with renowned blockchain, data analysis, tokenization, regulatory, and trading experts to build the Energy Tokens Asset Trading Platform. The Energy Tokens Asset Trading Platform uses permission-based blockchain technology to tokenize ownership interests in energy-producing assets.
The world’s confirmed oil reserves are 65 trillion barrels, which, based on current usage, is enough for 47 years, ignoring current oil extraction of roughly 80 million barrels per day.
Because the price of oil is primarily determined by scarcity and geopolitical ties, the price margin is very speculative and overstated. Despite the fact that the world possesses 47 years of oil reserves, artificial scarcity, sanctions, logistical bottlenecks, and increasingly speculative approaches push up the price. The same idea applies to the oil club smart contract, in which members with OIL decide whether to accept immediate gains from their WELLS extraction share and drive down the oil price or to create scarcity by reinvesting in the lease of the WELLS and driving up the price.
WELLS are virtual shares of an oil drilling well that are used to extract oil in petroleum, or in the setting of a smart contract to mine rewards in the form of OIL, which is displayed in its price connection to BNB. The more WELLS a leaseholder has, the more OIL is mined.
WELLS are leased and so cannot be sold.
The price of OIL and WELLS varies according to market conditions. If you reinvest the OIL value in leasing more WELLS, their market value rises, earning you more BNB incentives on sale.
The sale of OIL has no effect on the number of WELLS lease shares you possess. However, selling too frequently can alter the OIL price and reset your extraction rate to default (8%), thereby reducing your earnings.
To encourage the club’s long-term strategic thinking, the individual percentage rate will increase by 2% for each successive 7 days of leasing WELLS without selling OIL, but will be restricted to 14% per day to ensure sustainability. Members do not earn BNB; instead, they extract OIL, which has a predetermined extraction rate. The ultimate reward will be determined by the price of OIL, which is now rising and will surpass the projected amount.
Even if you did not invest, you can refer friends. You’ll receive 5% of their investments (new leases). The referral rate may appear lower than industry standards, but a larger amount has been shown to undermine the contract’s sustainability and lead to the referral program being exploited and draining earnings from other members.
There are no restrictions on your actions; the reward is recalculated every 3 seconds, and a new BSC chain block is created; however, you must be wary of network expenses.
There is a 2% club fee, which is entirely invested in marketing and partnerships to help develop the community and raise knowledge of our club.
An optimized smart contract, validated by the detection of algorithmic flaws in prior projects, ensures assured contract growth and stability.
Although the Oil Club smart contract does not provide you with actual oil barrels, oil wells, or land to own, it may provide you with reliable returns ranging from 8% to 14% each day provided you follow their investing rules. Given that there are no restrictions on taking gains or reinvesting, compounding will play a significant role in deciding the number of your returns. Is it, however, too late?
The smart contract’s algorithm regulates the price of the club’s “tokenized asset,” OIL, in such a way that if too many members sell their OIL instead of leasing more WELLS and stocking OIL, their returns diminish by temporarily lowering their rate, and the OIL price, allowing new investors to enter at a favorable price and count their profits from there.
The aforementioned algorithm develops a long-term financial model that allows new members to join at any point and begin earning money.
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