📣 Why the 2.0 model is sustainable 📈
📣 It is highly recommended to read these links before proceeding:
👉🏻 2.0 launch
The 2.0 model is very powerful because you no longer need investors who will yield-farm with the sole intention of dumping the token non-stop. In the new model, the protocol (in this case, BeGlobalDAO) purchases its own treasury which are different tokens that are used as reserve to back up the protocol’s token (GLBD). For example, if there are $10.000.000 in the treasury and 1.000.000 tokens, we could say that each token is backed by $10 in the best-case scenario, should the protocol decide to use all its assets to back those tokens. But let’s not mix that up with the minimum value that they can have, which is set at $1, as the protocol works like this:
▶️ The protocol can only create tokens (GLBD) if there is $1 (BUSD) backing it in the treasury. Otherwise, tokens cannot be created.
▶️ Consequently, if the treasury does not back each token with $1, the only possibility for the protocol to keep working is to use the treasury to buy GLBD and burning it (raising its price).
We believe that it was necessary to make this distinction, since it is a point commonly misunderstood by the community.
Having said this, let’s circle back to the initial question. We have already seen how many DeFis that are alike have dumped hard (Jade, Midas, GG, etc.). Why? On the other hand, Time (Wonderland), OHM (Olympus) and Spartacus are holding on smoothly, with solid projects behind. What is the difference between these two kinds of 2.0, the ones that disappear after a few days and the others that have been ongoing for months? The answer is pretty simple. The first ones promised a 5%-15% every 8 hours! Everybody threw themselves into them like crazy. “If I hold for 3 days, I’ll withdraw the initial investment and leave the rest as a moonbag”. The problem is that those protocols require constant inflow of capital to maintain the token price up. So, when there is no more euphoria in the market, not enough capital flows in and the token simply dumps. Hard. In plain terms, they are very, very ponzi protocols. No plan, no vision, no product. Just surfing the euphoria wave trying to become something out of thin air. A lottery ticket that will leave most people fucked up in most cases.
This does not mean that, once they are out and they have acquired a decent-size treasury, they cannot become legitimate projects. They have money to establish themselves in the market if they know anything else apart from spamming marketing, which is the only thing they do when they start. But let’s not lose sight that when they launch, promising such profitability is far from being remotely sustainable. It is like playing musical chairs. There weren’t any real projects at all. No value. Just... Hype, marketing, Twitter… but nothing else. Unfortunately.
🔥 In BeGlobalDAO, we will follow the same philosophy as in BeGlobal: product and vision comes first.🔥
- The APY offered in both bond and staking won’t be outrageous. To keep the token price healthy, buys should equal sells. To achieve such thing, people cannot be cashing out constantly.
- Overflows of 12h are most likely to happen. We will try to remove people’s needs to keep constantly monitoring the price all day waiting for the next epoch. We might change this in the future.
- GLBD will have many use-cases. Different articles will be published in more detail. GLBD will be used for many things and not just one.
- Treasury. Here is one of the main subjects of the 2.0. Most of them just focus on acquiring a huge treasury and they do not profit from it. OHM, TIME… The “good 2.0” DeFis use their treasury to generate MORE value, which reverts favourably to benefits to their investors. While BeGlobalDAO’s grows, it will be used for different effects. Another article will also be published in more detail, but you can count on the money working for the protocol at all times shortly after launch. Some quick ideas: the treasury can be used in our swap, for lending, for farming in different platforms and use the rewards for buybacks… And all of this just playing safe. What is more interesting is yet to come, but for privacy reasons and NDA, we cannot explain it just yet. The project S, which is still not 100% confirmed, but we are fighting to pull it off, is going to be better than anything before. All in all, there are 3 big projects associated with the treasury. First one will be disclosed soon. The second one, in January. And project S, probably in February.
Yes, we know that the treasury management is kinda vague at the moment and it’s actually the most important point. We have pointed out a few things but the real stuff has yet to be disclosed. You will know more very soon and we are sure you are gonna love it. Hell, we can’t wait to tell you already!
🔥 Long story short, as you can see, the sustainability of BeGlobalDAO 2.0 is almost guaranteed. 🚀
🚀 Official references and All things about BeGlobal🚀
🌐 Discord: https://discord.gg/ZSHSxTrmar
💬 TG Chat: https://t.me/BeGlobalFinance
📣 News Channel: https://t.me/BeGlobalAnnouncements
🕊️ Twitter: https://twitter.com/Beglobaldefi