The success of any crypto project relies on its adoption. The more users it has, the more chances of the project surviving and, ultimately, its token value rising to an acceptable level. To that end, one of the most common tactics used by decentralized projects all over the world is to have a token issuance method where early adopters are rewarded either by cheaper coins or issuance of a greater number, higher staking rewards, bounties, and other incentives to hold on and drive up the value, causing more people to join in. However, Dafi is one platform that believes that this method is ultimately flawed and comes straight with a solving solution.
DeFi is Broken Too
Decentralized Finance (DeFi) has seen its biggest growth in the last 12 to 15 months, with more than $40 billion locked up in different platforms across every conceivable chain. Incredible as it is, the farming and yield in the industry have created a few significant problems:
- Oversupply: In a low-demand period, such as starting a project, the token supply is hyper-inflated. This drives down the value rather than create adoption. The oversupply becomes even more harmful when the demand drops, later on, creating shocks as people sell off the token in mass, crashing the value.
- Unlimited Supply: Bitcoin, the forerunner of modern cryptocurrencies, created what is called a deflationary economy. Farming in DeFi projects is all about issuing new tokens constantly to stakers and pool providers, eventually leading to an inflationary economy, something that cryptocurrencies fight against.
- Instant Profit Takers: Initial adopters of projects simply enter the market to seek out new platforms and join it as an early adopter only to sell off the tokens when they believe the initial rise has reached the maximum. These short-term investors and backers create more harm than benefit.
- Market Crash: Remember what happened post-2017, the second last crypto rush? As demand for coins and tokens fell, people mitigate their losses by selling in mass, contributing to the already increased selling pressure, leading to a massive market crash.
Sustainable Adoption Through Dafi
The game in the long term for any project to survive is to tie down its token issuance in line with its network adoption. In the initial launch phase, when the network is in its growth stage and sees a lower adoption, the early adopters will be incentivized, but this time with reduced rewards.
Over time, as the network adoption increases as more users join the platform, the token issuance will increase in line, creating a delicate balance that sees a connection between these factors, leading to the platform’s healthy growth. If the network experiences a decline in demand, the Dafi protocol will again reduce the token issuance, constantly adapting in a response to ensure that oversupply of tokens is not caused.
In this way, any blockchain project can use the Dafi protocol to create a sustainable adoption plan of their platform and move away from the broken and flawed system currently being used by almost all of the crypto industry.
Synthetic Dafi Tokens
Dafi is unique in its method in that it allows any platform to deposit their native tokens onto the Dafi network and receive synthetic tokens in return. These synthetics are based on the Dafi protocol and then can be used by the original network, allowing them to link their network adoption with their token issuance.
The synthetic tokens can be used in several different DeFi and other platforms, with each platform capable of creating different flavors of tokens aimed towards their specific requirements, such as staking, liquidity provisions, bounty programs, etc.
DAFI and dDAFI
Dafi even uses the same synthetic token controlled issuance in its Dafi staking. The DAFI is the native token of the platform and as a utility token is used for both staking on the network and Dafi’s governance model.
When DAFI is added as collateral (or staked), users are an issue with the synthetic dDAFI tokens as rewards, which are pegged to the network demand and adoption using its own Dafi protocol, thus rewarding long term users more than short term users, regardless if they are early adopters or not. The DAFI users can also use the tokens for voting in all changes made to the network and protocol, thus taking part in a truly decentralized economy.
Dafi Private Sale, SHO, and BitMax Listing
DAO Maker is a world-renowned crypto platform dedicated to weeding out the get-rich-quick schemes of short-term investors who put in a large influx of money in a project and then sell off as soon as the token gets a boom, ultimately crashing the value. The greedy investors walk away with their profits and a perfectly good project crashes and burns. You can find DAO Maker`s one-pager research on Dafi here and Dafi`s Litepaper here. Dafi`s notable private sale investors and partners are LD Capital, Moonrock Capital, AU21 Capital, Elrond Network, and the Royal Bank of Scottland.
DAO Maker counters this with its innovative Strong Holder Offering (SHO). Only individuals and parties that have shown their long term interests in projects can only take part in the SHO, meaning that every project that does its SHO is backed by people who are sincere to the platform and are not in the game of making a quick buck by dumping their tokens into the markets. My Neighbor Alice, whom we have introduced to you earlier was also a DAO Maker Strong Holder Offering prior to the Binance Launchool offering.
Dafi ran a successful SHO with DAO Maker collaboration on 10th March 2021 and will be listed on the leading crypto exchange, BitMax, today, Wednesday the 17th March at 1 PM UTC, with the DAFI/USDT trading pair. Dafi`s token DAFI is already listed on CryptoRank.
The Crypto-KOL Altcoin Buzz has featured Dafi as one of the hottest upcoming 100x crypto moonshots earlier this month. Risk warning: Do Your Own Research! Cryptocurrency trading is subject to high market risk. Please make your trades and purchases cautiously.
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