All decentralized economies distribute tokens to customers. Dafiprotocol.io trouble is that dispensing tokens while adoption is low, creates an extra deliver & devalues the economy. There isn’t anyt any hyperlink among the discharge of community deliver and the community’s adoption. This harms longer-time period customers and most effective favours short-time period participants. Dafi introduces the primary opportunity when you consider that Bitcoin, to apply community rewards for constructing a decentralized economy.
Instead of at once issuing tokens for staking & liquidity – Dafiprotocol.io ties synthetics to every community’s adoption. This manner that the token release & community call for is proportional. Meaning customers are nonetheless incentivized while adoption is low, however with the aid of using being rewarded later, now no longer earlier. By linking those factors, it draws longer-time period customers to be incentivized longer, assisting adoption. Dafi permits each protocol and platform to create a artificial flavour from their local token. This is then algorithmically pegged to the call for in their community and dispensed to customers.
Every decentralized economy since Bitcoin, is forced to distribute large amounts of tokens to their network.
This incentive model creates an excess supply. Nobody likes this, it simply devalues the economy, without supporting early-users.
Instead of distributing a token directly, the Dafi protocol enables networks to create a synthetic in a reduced quantity. As demand rises, the synthetics (dToken) increase in quantity.
Dafi can incentivize early-users and maintain a network in bearish markets, without issuing large quantities of tokens.
The Dafiprotocol.io token is staked for synthetics – which increase in quantity only as demand rises.
Every blockchain and cryptocurrency can create a synthetic to incentivize their users better.
Dafiprotocol.io rewards users even when demand is low, by actually enhancing scarcity – dToken rewards these users later by increasing in quantity when network demand rises.
What is network inflation?
To create any decentralized economy, issuing out tokens is required for nodes, staking and liquidity. It is the very foundation, which has not been changed since Satoshi. The Dafi protocol creates flavours of network-pegged synthetics for any protocol or cryptocurrency. In Dafi, inflation is pegged to the demand of the network, for every token – incentivizing users in lower quantity when demand is low, but then greater when network demand rises.
DAFI Token Sale
The Dafiprotocol.io token is staked for synthetic dDAFI, each pegged to the demand of the protocol. Decentralized economies creating synthetics on Dafi, transact a DAFI fee which is returned to the staking reserve.
The flawed model
Dafiprotocol.io only way to reward a network is to release large volumes of native-tokens directly. Nobody likes this, it devalues an economy. Until Dafi, decentralized economies were forced to create hyperinflation & an excess supply. There is no trustless way for users to be rewarded less when network demand is low, but rewarded later – protecting longer-term users.
Networks with synthetic tokens
dTokens (or DFY) are network-pegged flavours of existing tokens. Any project can lock their tokens to mint dTokens using Dafi, and issue them out in a reduced quantity. They are not tradeable – they are minted to later be burned for the native-token. Flavours of these synthetic assets use price & volume oracles to algorithmically change in quantity relative to demand.
How will Dafi be adopted?
Bounty –Dafiprotocol.io method that once worked to attract new users, now every protocol can issue synthetics that increase in quantity only for longer-term users.
Liquidity – enabling any DeFi application to reward liquidity using Dafi’s synthetics in a reduced quantity, further promoting scarcity.
Staking – Dafiprotocol.io issuing network pegged synthetics to nodes can maintain a network even in low-demand phases, without a large volume of tokens.
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