DAO. Token. IDO
The Project team has long tried to do without Token inside the Project, but, as will be shown below, this cannot be done and the main reasons are three:
  1. 1.
    The use of native coins is either expensive (ETH, BTC, etc.), or ties to other consensus-specific complexities, which is little acceptable for a standalone non-zero (L0) level cross-chain solution. Yes, of course the Token will be issued within a specific DDS, but by the fact that it will operate in a closed ecosystem, avoiding the problems of native coin blockchain solutions is possible.
  2. 2.
    The Token functionality is tied to the overall evolutionary model of the Project (see Roadmap), so replacing it with an even simpler entity is not possible.
  3. 3.
    Finally, it is the Token that enables the cross-chain operation of the Project, as it is also the unit of measurement for any other assets.
Here is the position of the Project CEO, A. Shedogubov, on this point:
  • Firstly,
    • Tokens are blocked in the Collateral, hence the simple rule: less volume - higher price. Can we do without Tokens in this case? Yes, of course. But it immediately adds the possibility of universal transfer of NFTs created on different DDS.
    • Transactional growth of the Collateral price: hence the need for a native Token, which goes into Collateral, increasing the internal price through value appreciation. That is, the dynamic part of the drive can do without a Token, but then a separate authorisation for such transactions is needed, which is not always possible in all DDS.
    • The Token is also needed for royalty payments: the rule is simple - higher demand, higher price. In this case, it is the price of the underlying asset that is at stake, and the Token is a quick digital record-keeping option. Again, you can always opt out of the Token, complicating the model of behaviour.
  • Secondly, the following approaches are also possible:
    • A "wrap" operation is followed by the purchase of a Token from the market, which on the one hand - reduces the supply, on the other - offers a universal mechanism for accounting for the turnover of funds.
    • Similarly - it is possible to offer (at the request of the Project actors) "unwrap" operations;
    • In addition, the Token can also be credited for transactions, when Collateral is topped up and royalties paid, as this has a positive effect on network effects within the Protocol;
    • But there is also an alternative approach: wrap and unwrap transactions can be charged in any assets, and a discount is given if the Token is used, as this reduces transaction and other network costs. At the same time, part of the Project's working capital can be used to buy the Token back from the market, which reduces the supply and thereby increases the value of that asset (but never guarantees an increase and/or decrease in price), without resorting to the common practice of burning, since the Token in the Project plays a purely functional role, not a role of some "fuel" (like gas in the Aether-ecosystem).
    • Finally, another way of development is to create a decentralised repository with packed NFTs that have a timelock period: these assets are used after DAO NIFTSY votes, so the Token can act as a measure of the actor's conditional "weight" in the development of the Project and/or a specific part of it.
To summarise, the Protocol can be used to automate such actions:
Payment of royalties: e.g. to songwriters, photo-artists and other creative units, including non-subjects (say AI creating films, music or digital paintings).
  1. 1.
    The distribution of commissions between the various parties in the relationship, such as: exchanges - token holders - sellers and buyers - borrowers and others; producers and creators, etc. And while royalties are a contingent bonus, in the case of commissions, it is primarily a question of possible discounts for each party by optimising trading schemes (see Cases).
  2. 2.
    Formalisation of the various collateral histories, both within purely online entities and their connection to offline solutions.
  3. 3.
    Rapid transfer of assets between different DDS, including - at the expense of Token-only functionality.
  4. 4.
    Solving the problem of Impermanent Loss Explained.
  5. 5.
    Objective (quantitative) with valuation of assets in derivatives through Oracle's network commission.
  6. 6.
As we can see, Token plays a key role in the project, but also - can be replaced through complex WUM and other models. Therefore, let us briefly consider it as an element of the Project, in order to then move on to a full description of DAO NIFTSY and the initial decentralised asset allocation of this autonomous, decentralised organisation.
Last modified 4mo ago
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