A Brief History of Currency Circle Model Coins: A Long Article of 10,000 Characters Sorts the Past and Present of the Currency Circle "Model"
Editor's Note: This article comes fromBlockArk, reprinted by Odaily with authorization.
Editor's Note: This article comes from
, reprinted by Odaily with authorization.
In the past two weeks, a large number of practitioners in the blockchain industry have come to Shenzhen to participate in various conferences. Although there is no such gimmick as the "Blockchain Week" in Shanghai or Silicon Valley, practitioners from all over the world have gathered in Shenzhen, which is quite interesting. Strange, because this is a rare thing since the industry broke out in 17 years. Most of the time, when everyone comes to Shenzhen for a meeting, they leave after speaking without leaving any souvenirs. This time is different, as short as a week, as long as it starts to build a Shenzhen team on the spot. When asked why they all come to Shenzhen, many people will answer: "Come to learn the model and find the community to cooperate." If Beijing and Shanghai are two cities because of The gathering of project parties and investment institutions has formed a unique currency circle culture. The city of Shenzhen does not leave a too Shenzhen impression in the currency circle, or the impression left is not very good. Most people come to Shenzhen, just to transfer to Hong Kong, or go to Huaqiangbei to wholesale mining machines. But this time is different. Because of its deep ZJP resources, Shenzhen attracted a large number of people to "come to learn from" when the two circles merged.
According to the data of Grayscale Investment in May, 73% of institutional investors accounted for 94% of its Bitcoin positions. It can be deduced that the Bitcoin bull market that started in March was due to the entry of institutional investors. Growth, most retail investors have missed this round of the market, and retail investors urgently need to find a new "investment (machine) target" to regain their own income.
The "model currency" with high risk and high return has caught the eyes of retail investors at this time. Altcoins lack continuous hematopoietic function, and funds are constantly being lost. Even if Bitcoin rises, altcoins that have fallen 100 times will find it difficult to turn around.
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The Past and Present of Model Coins
3M and ETHTrade
Although the term model currency is a new word born this year, the model itself has a long history in the currency circle. Its early representatives are "3M" which uses Bitcoin to participate and "Ethereum Trade" which uses Ethereum to participate.
The full name of "MMM" is Mavrodi Mondial Moneybox. It first appeared in the public eye in 1994, and it promised high returns to attract people's funds. In 1997, it declared bankruptcy (run away). In 2011, Mavro, who was released from prison, resumed his old business and started a new round of illegal fundraising in "financial mutual aid". In 2015, 3M entered China, spread rapidly in China with the help of its "pyramid" model, and supported payment in Bitcoin. "Using Bitcoin instead of traditional currency will be more beneficial, faster and safer". Its huge influence has greatly increased the purchasing power of Bitcoin. In that "dark" bear market, it actually pushed Bitcoin from less than $200 in September 2015 to more than $500 in early November.
In 2017, the Ethereum trade that appeared on Ethereum was also such a routine. Although Ethereum, as a POW currency, did not have any model itself, the use of Ethereum for deposits and withdrawals contributed to the rapid development of Ethereum trade.
Dividend model (ANS and GXS) and buyback model (BNB)
"Model" was originally a neutral word, until recently "mode" was equated with "ZJP mode". If we talk about the blockchain itself, there is really no "model" at all, but after adding the "Token Economics" token economy, the emergence of the model is inevitable. In order for the holders to continue to "Hold", traders in the secondary market have buying needs, and some incentive mechanisms to retain investors are bound to be needed. The native cryptocurrencies headed by BTC/ETH do not have much relevant thinking. There is only a simple logic of appreciation-the network value effect. The more people use it, the more valuable its tokens are. But for a digital currency in the early days of its birth, how to obtain seed users and attract everyone to buy in the early stage is a proposition worth exploring. For this reason, altcoins have to rack their brains.
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Ant Shares First Edition White Paper
In 2016, Ant Shares (ANS) led a wave of "dividend sharing model". In that reckless era, digital currency did not have the influence it has today, and there is no difference between Security Token and Utility Token. A number of digital currencies led by ANS, such as (Gongxinbao) GXS, etc., borrowed from the stock model and integrated the company's Profits are distributed to currency holders. Compliance? None, all the gameplay is in a gray area, and these dividend coins have also won the first pot of gold.
However, with the advent of the big bull market in the digital currency market in 2017 and the influx of funds, regulators began to gradually review these online digital currencies. Many regulatory agencies such as the SEC have put forward clear regulatory requirements for security tokens, which makes these digital currencies with dividend attributes have to change their dividend models. So far, ANS has changed its name to NEO, and GXS has changed its name to GXC. The word Share in the name has been removed, and the token economic model has been redesigned to a more obscure "repurchase model".
On June 24, 2017, Binance began to sell ICO on its official website at a price of approximately 0.1 USD/BNB. As a functional token, BNB has strong fundamental support.
Transaction is mining
Every quarter, Binance will use 20% of the profits to repurchase and burn BNB, which makes BNB deeply connected with the income of the trading platform itself. Although repurchases are cleverly used to avoid supervision, the essence is the same as dividends, and the deflationary token economic model has a stronger effect on raising the currency price. In the later period, Binance gave BNB more functions, such as deducting handling fees, participating in LaunchPad, using BNB to pay, launching Binance Chain, building DEX, etc., which brought a huge value-added effect to BNB, and BNB also jumped It has become the top ten or even top five digital currencies by market value.
Transaction is mining
CTO Zhao Changpeng, who left OK, led Binance from zero to No. 1. Before the butt was hot, Zhang Jian, the former CTO of Huobi, established Fcoin to challenge this position.In June 2018, Fcoin launched "transaction is mining", which instantly detonated the market. The so-called transaction mining means that the transaction fee consumed by the user will be returned to the equivalent platform currency FT, and FT can obtain the dividend of the transaction fee of the entire network. In this way, users will spend a lot of trading volume, pay a large amount of handling fees to get low-priced FT, and expect to get more dividends from the exchange. Although transaction mining was not pioneered by Fcoin, it led the market trend. For a while, market exchanges sprung up everywhere, and the mechanism of "transaction is mining" was adopted one after another, and the transaction volume once rushed to the first place in the world. This is also the first time that Binance, Huobi, and OK have united to boycott these exchanges, claiming to open 100 or 1,000 exchanges to fight against them.
We wrote an article at the time,
Fcoin: An exchange that has risen 50 times in three days, and its daily trading volume has surpassed that of Huobi
FOMO3D
We predict that FT will spiral up and enter a downward spiral after reaching a certain threshold. Sure enough, on June 18th, FT crashed and began a never-ending decline until the lowest point, when its price fell by 99%.
The problem with Fcoin is that there are no real trading users. All users come for FT, not to participate in the transaction itself. If all the gamblers in a casino come for the sexy croupiers, it must be inferior to those casinos that really retain gamblers. However, the transaction mining created by Fcoin or Dragon Net has also brought great significance to the industry: allowing users to become shareholders to pull people's heads is an excellent promotional fission model. With the blessing of digital currency, such a model becomes simple and operable, and "XX is mining" has since become a widely used paradigm in the currency circle.
On July 20th, a game called Fomo3D exploded in the currency circle overnight, and the WeChat group at 4 o'clock in the morning became very lively because of the popularity of this game. FOMO means Fear of Missing Out, which refers to an emotion that is afraid of missing out. It is precisely because most people have such emotions that chasing ups and downs has become the normal state of retail investors' trading, and this game called FOMO has officially taken advantage of people's psychology.
The core gameplay of the game is that there is a 24-hour countdown in the middle of the webpage. The system will sell a Key that continues to increase in price. Every time someone buys a Key, the countdown will increase by 20 seconds (24h cap), until the last person The countdown ends after the bid is made and that person wins the entire prize pool. The game accumulated 10,000 ETH in one day, worth 30 million RMB, and there are two reasons why players are so crazy:
1. 1. The proportion of the number of keys held in all keys will receive dividends from new funds. If you buy a large number of keys in the early stage, the subsequent incremental funds of the game will give you a large dividend.
2. 2. New users register through the invitation link, and a 10% commission will be given to the inviter.
3. 3. All the rules are placed on the smart contract of Ethereum and open source, which means that the game has no risk of developers running away.The third point is that the blockchain endows the game with the most important feature. A decentralized ZJP fascinates a large number of players—finally there is no dealer, and it’s time to make a fortune.However, in the end, the hopes of those who hoped to make a lot of money fell through. According to the DAppreview article,
The Fomo3D you play may not be the same as mine?
, only about 20% of the players in the entire game make a profit, and the other players lose more or less, which perfectly satisfies the 28% rule.
However, the biggest difference between this decentralized ZJP and the traditional ZJP is also the reason why this game exploded in popularity in a short period of time but then quickly cooled down. In the traditional ZJP, you only know your superior-subordinate relationship, not the amount of money in the entire prize pool. And the deposit rate, you can only see the brainwashing information that the dealer wants you to see. FOMO3D is different. All the information is publicly available on the chain, and all players can find out how much capital increment is required to exit with guaranteed capital. After everyone enters the market, the size of the prize pool needs to grow to the current number. double to make a profit. When the amount gradually increases and the growth rate of funds slows down, players know that it is difficult to make profits by entering the market at this time, and that is when the game dies.
What everyone never expected, the end of FOMO3D is because the hacker’s dust attack congested the Ethereum network, making it impossible for players to re-bet, and finally took away the 10,000 ETH bonus.
Plustoken Wallet
120,000 BTC, 8 million ETH, and countless XRP, EOS, LTC, BCH, a total of 30 billion. It was not until the crash of Plustoken in June this year that people had a clear understanding of the largest ZJP in the history of this digital currency. I know, and every time there is a change in the Plutoken wallet, it will cause a panic-like plunge in the market.
Plustoken started in 2017 and claims to be a wallet, as long as you deposit funds, it will give you a monthly return of 10-30% interest. The source of the interest is because the wallet has a built-in "smart dog" brick-moving function, which can automatically use your assets to carry out arbitrage transactions between different trading platforms. However, friends who are familiar with quantitative trading know that it is impossible for simple arbitrage trading to obtain such high returns in this market, especially after the market has flooded with a large number of quantitative institutions, simple arbitrage can no longer reach 10% annualized Income, even with strategies such as futures and spot, intertemporal, and triangular arbitrage, the annualized return can reach 50%, which is far beyond the market level, and there are various systemic risks and possible drawdowns caused by black swan events. Therefore, the high returns advertised by Plustoken are essentially not supported by actual asset returns. It can only be used to subsidize those who enter the market later through the Ponzi scheme.
Perhaps the founding team of Plustoken did not expect that the plate would be so big in the end. So that if you go around the third- and fourth-tier cities, they may not know the wallet products in the currency circle such as imtoken, Jaxx, and tokenpocket, but they know Plustoken Plus, or other imitation "xxxxtoken" wallets. In the thinking of these people, wallets should be used to put money in to earn interest. As for the "private key management tool" we often say, Who Care?
Bell Chain/Egretia
In 2018, the digital currency market began to fall rapidly after reaching its peak. Although there was a slight rebound, the general trend throughout the year was "endless decline", which made countless people go from expectation to disappointment, disappointment to despair. BTC fell from nearly 20,000 US dollars at the beginning of the year to 3,000 US dollars at the end of the year, while other altcoins fell by 90% relative to BTC. In such an environment, Baer Chain was born. BRC with an issue price of $0.15 reached $1.5 at the end of 2018, an increase of more than 10 times. After stepping through the ravine of the bear market, BRC reached a maximum of $17 in 2019, and its market value reached 18 It once became the digital currency with a market value of TOP10, and became a veritable "hundred times currency".According to the introduction of Baer Chain's official website, Baer Chain is a distributed game ecological platform based on blockchain technology architecture. With a decentralized structure, it directly organically links the components of the entire game ecological chain to realize direct docking, non-destructive circulation and safe storage of individual values. Do you think BaerChain is a pure blockchain project? No, it is his coiling genes that can make it rise against the trend and move across the currency circle.Refer to the article written by DOGI:
Absorbing 5.2 billion gold in half a year, Baer Chain's black village past
, Baer Chain has developed two games, "Super Rich" and "Universal City". The official promise is that recharge users can pay back their capital and start making profits within 90-120 days according to the recharge amount. Get 3~4 times or even more return every year.
The way to achieve this is that users invest in Ethereum, and the official pays with its own digital currency BRC.
“Because the time to return the value of the anchored Ethereum is locked, the following will happen:
When the price of BRC increases, players will get less BRC;
Conversely, when the price of BRC falls, players will get more BRC.
This interesting setting gave the official a perfect publicity rhetoric:
If BRC rises, you can sell your coins at a high price and make more money;
If BRC falls, it doesn't matter, you can get more BRC, and you can earn more when it rises later.
This ingenious setting makes many store holders very happy when the currency price falls. "
The core of being able to operate in this way is that BRC is issued by the government, and due to the high degree of control, the price of BRC is highly controlled by the dealer. After the price rises, the new circulation of BRC in the market will also decrease. Subsequently, Baer Chain released the game "Super Soldier". Players can use BRC to buy items to consume in the game. At the same time, a super node plan was launched, which also reduced the pressure on the official to buy back BRC in the secondary market. The reduction in supply and increase in demand has led to an increase in the price of BRC, and dealers have been able to ship smoothly.
Today, the price of Baer Chain has shown a trend of collapse. Compared with the peak, it has fallen by 80%. Let’s go back and look at the slogan "Bell will only start at 100,000 Bell" when it was promoted in various places. We should see that when Bell reached 100,000 Not anymore, but there are many people who have lost hundreds of thousands.
At the same time, there are also some blockchain projects that chose to learn and imitate when they saw that BaerChain was extremely hot. Among them, Egretia was the most successful. This blockchain project as a game engine developed several games in the cold winter of the market, but they were not popular until the launch of "Giant Merchant" in March this year, which introduced a deposit and withdrawal model imitating Bell, and it became a hit. The price of its token EGT has risen from 0.00026 USDT to 0.1 USDT, which has increased by more than 300 times, creating a legend.
It is the price effect brought by EGT that seems to point out a clear way for many sluggish digital currencies in the market-since the right way is not going to work, you might as well try another way.
Blockchain Games and DApps
Different from the centralized games on Baer Chain, another craze in 2018 is blockchain games. 2018 is also known as the first year of the public chain. Many public chain mainnets have been launched one after another, such as EOS, Tron, Ontology Network, and IOST, but what should we do if we only have the underlying architecture and no applications? People began to focus on the hot spots of hype, DApp (decentralized application) that is most easily accepted by the public - blockchain games.
The blockchain game that exploded in the market for the first time was "Crypto Kitty"/Riddle Cat. Looking back, you can think that this is a blockchain-based ZJP game. CryptoKitties is a game of drumming and passing flowers. Players can use ETH to buy their own CryptoKitties in the market. This encrypted cat is essentially a non-homogeneous token. Each cat has a unique code, which is unique in the world. In addition to being collected, such cats can be bred to give birth to cats with more rare attributes, and can be sold to others at a higher price. Is there any actual application value created? No, but as long as there are more people speculating, there will naturally be a price. For a pair of shoes that cost hundreds of dollars, the hype of tens of thousands of dollars is far from comparable to its practical value.After CryptoKitties, there are many games that imitate it. Crypto celebrities and crypto countries are all in this "drumming and spreading" mode, and the props of these games, without exception, end up rotten in the hands of players. But at least it can be kept as a souvenir, this NFT will always stay in their wallets.
DApp broke out again at the end of 2018 due to the decentralized gambling platform. According to the data of DAppReview, in 2018, the flow of funds on Dapp was 33.6 billion RMB, most of which were generated on EOS and Tron after the explosion of Dapp at the end of the year.
8 billion in 80 days, the undercurrent surges in the cold winter - the EOS DApp ecological explosion that you don't understandIn addition to the advantages of blockchain such as guaranteed fund security and transparent rules, decentralized gambling games, the thousands of TPS brought by the EOS and Tron mainnet launches make such high-frequency games playable. But what really makes the spinach game explode is because of its biggest core highlight "gambling is mining". This is an extension of the previously mentioned Fcoin gameplay: with its banker advantage, the spinach platform will compensate players with platform coins for the loss price through a large number of swiping orders. This is a method of purchasing platform tokens with EOS in disguise. After purchasing platform tokens, investors can get dividends from the platform. After the tokens are listed on decentralized exchanges such as Newdex, investors can choose to hold them and continue to wait for dividends, or Selling on the exchange.The highlight moment of DApp is the launch of WINK on Binance LaunchPad in June this year. Its predecessor is Tronbet, the largest spinach game on Tron. Articles we write:
WINk: I come from the mountains, I want to become a Shura
VDS
This matter was interpreted.
It is worth mentioning that the survival period of most DApps is about two weeks. The reason is that real gamblers cannot be retained. Most players enter only to hype a wave of platform tokens. When the popularity ceases, they will quickly collapse. The biggest reason why WINk has been in operation so far is precisely because there are a large number of real gamblers who continue to support the platform. Continuous external blood supply is also the only way for ZJP to break through.
VDS is a new star born in 2019, and it is also a product that was born in the circle, but caused a sensation in the entire currency circle. Unlike most other projects that expose the founding team to obtain credit endorsement, the official website of VDS is placed on the dark web, and most people can only learn about it through the white paper and resonance rules passed by word of mouth in the WeChat group.
The most widely known rules of VDS are "resonance" and "stamp of trust". What is resonance? It is a process of continuously using Bitcoin to purchase the token Vollar one-way in the primary market. What is Trust Stamp? It is the pyramid recommended fission model.
To interpret it in the vernacular, this is a game of charging money to buy coins and developing offline. The publicity materials of the project party are full of mystery, various high-end nouns, mysterious people wearing "V for Vendetta" masks, and fluent English have fascinated many Xiaobai.
What really promotes its spread in the currency circle is the soaring token price. From the initial 3 yuan to 5 yuan, it rose to the highest 80 yuan, and the players who entered the market at the beginning earned a lot of money. Even VDS brought fire to the MXC Matcha Exchange, making this once third-tier and fourth-tier exchange a leader in second-tier exchanges.
When I asked a friend in the currency circle why he wanted to play this project, which is obviously ZJP, he told me, "This project has a logical white paper, exquisite publicity materials, and a powerful and extremely smooth mainnet wallet. (Vollar is a main network currency), the new gameplay that has been launched one after another, and the skyrocketing price, are much better than most blockchain projects that have returned to zero, why do you tell me to play with those air coins?" Suddenly I Speechless, I can only ask these blockchain projects to work harder.
With the popularity of VDS, many "XDS" have emerged as the times require, such as LTC, EOS, BNB, HT, but it seems that there is no ETH, probably because the ETH is called 1CO.
Staking mode
If we don’t consider the governance mechanism and on-chain voting, the additional issuance of tokens brought by PoS is not much different from the ZJP model. Although such a statement will inevitably cause great dissatisfaction among PoSists, it is the truth. Investors exchange BTC for equivalent ATOM/TEZOS/DASH, lock these tokens, and expect to receive dozens of token dividends every year. Deposit legal currency and withdraw gold tokens. These tokens are all "printed" by the system, and they are directly issued without value collateral. How is that different from ZJP?
There are really some differences, the difference lies in the governance mechanism. The reason why the blockchain has been able to develop so far is because its decentralized governance mechanism guarantees the uniqueness of this decentralized ledger. Whether it is PoS or PoW, the core is to maintain this ledger. There is nothing wrong with us talking about many models, but if we forget the original purpose of decentralization and simply pursue the so-called benefits or currency prices, we will lose everything.
Since sunny king created Peercoin in 2012, PoS has gone through 7 years. Various projects have proposed various variants of PoS mechanisms, such as EOS’s DPOS-BFT, DASH’s two-layer network mechanism, and Ethereum’s Casper, all of which are made to ensure the scalability, security, and decentralization of the system. effort. Similarly, we also agree that a certain degree of inflation is more conducive to the circulation of money.
Nowadays, more and more digital currencies have joined the Staking camp, and many projects have also begun to propose their own Staking plans or super node plans to explore the development direction of PoS. A benign issuance model can help digital currency develop better, while a bad model will push tokens into an endless abyss.
Dutch auction + break buyback
People in the currency circle are gradually losing confidence in the blockchain technology. It is very likely that the technical masters have collected a lot of funds and resources, but in the end they have not come up with something that can satisfy everyone. The first to bear the brunt is the Algorand project founded by Turing Award winner Silvio Micali Silvio Micali. The widely used zero-knowledge proof in the blockchain was proposed by him in 1985.Logically speaking, why did Algorand, such a powerful project, end up with "the one who hears it sighs, and the one who hears it sheds tears"? It lies in the huge price difference between public offering and private offering and the mechanism of Dutch auction + break buyback. Algorand’s public offering adopts a Dutch auction mechanism, with 25 million ALGO tokens being auctioned in each phase, 24 times a year, each time the auction starts at $10, and when the 25 million tokens are sold out, they will be sold to everyone at the lowest price. If the transaction price is greater than $1.0, the investor will get a repurchase option, and can apply for repurchase at 90% of the auction price after one year.Who will participate in the public offering? Everyone thinks it is an institution that has already participated in private placement. By participating in the public offering, you can get the right to withdraw the tokens, sell the tokens after the public offering goes online, and unlock the private offering tokens one year later, you can lock the price of the tokens. The price of private placement is US$0.1, that is to say, these institutions that participated in private placement will always participate in public placement and drive up the price. The founding partner of Primitive Ventures commented on this: "This plate collapses very slowly, and as long as the repurchase is not completed, it should not collapse."
Making money is really related to IQ - Turing Award-level fund Algorand
, Therefore, ZJP is also called "Turing level" by the people.Unexpectedly, since private equity agencies will unlock tokens every day, if you don’t sell them, others will sell them and lower the price. However, the market does not have such a huge incremental capital. After the price of ALGO fell below the issue price of 2.4, it did not stop falling, but went all the way down until it reached 0.05 US dollars.Hyperlink:
What Algo Taught Us During Those Years
, the story of ALGO tells us that even a ZJP at the Turing Award level is a ZJP. As long as it is ZJP, as long as there is no incremental funds and uneven distribution, it will definitely collapse.
"Model reform" refers to the north
Since the first half of this year, affected by projects such as VDS/EGT with soaring currency prices, if a blockchain project reports that it is going to "go the mode", its currency price will start to rise. To apply Mr. Li's famous saying, it can be said that The dilemma faced by most blockchain projects, "Your problem can be solved by following the model."
Can walking mode really solve the problem? What is the core of "model reform"? Let's listen to the captain coming slowly. The so-called model is to add the ZJP revenue model to the project. There are many models, all of which remain the same. All models are divided into "static income" and "dynamic income". Static income refers to dividends obtained through investment or pledged funds; Recharge, the system will give you a share. Converted into the currency circle, one is the lock-up income, and the other is the invitation reward.
Coin Standard and Gold Standard
The valuation and settlement methods of deposits and withdrawals are different, and the final effects are completely different. We divide the deposit and withdrawal methods into currency standard and gold standard. The so-called currency standard refers to pricing and settlement based on the number of tokens. When participating in the model, it is priced by the number of tokens. When exiting, it is withdrawn by the number of corresponding tokens. All benefits are not linked to the legal currency of the token. One The standard staking model is similar. The gold standard, on the other hand, is denominated in fiat currency, which is expressed in the form of deposits and withdrawals of stable coins such as USDT, or mainstream digital currencies such as BTC/ETH equivalent to USDT. For example, Baer Chain will give the price of anchoring ETH when investing in ETH, and it will be priced according to the price of legal currency when it is distributed, and it will still be settled in BRC when it is distributed, that is, the currency standard is used for deposits and withdrawals, and the gold standard is used for pricing and settlement.
Divide the valuation and settlement methods of the deposit and withdrawal of static income into 16 categories in total. There is no good or bad mode. Here we only select a few representative currency circle projects to do some analysis. The information comes from the Internet. If there are any mistakes, please point them out in the message area.
dynamic income
When it comes to ZJP, there is no such thing as physical products, but the method of inviting recommendations still exists. If you recommend downlines to participate in investment, the merchants can directly obtain profits. The percentage of share is called "snap point" in the industry, and the amount of share directly determines the fission speed of the project. If the share is high enough, as high as 50%, then the recommender will not hesitate to pay any price to induce the next investment, but this also means that a huge bubble will follow-most of the profits are given to the channel, and the project party gets it. If the income is small, when the funds cannot fill the "static income" promised to investors, it will collapse; if the income share is very low, the bubble will indeed be small, but this will cause insufficient recommendation motivation and it is difficult to fission.
How to set the static income deposit and withdrawal mode, and the dynamic income recommendation sharing mode are the keys to the "model reform" of a blockchain project. We use two examples of blockchain project "modification" to illustrate the possible effects of different models.
ARPA
secondary title
Project casesARPA is a pure blockchain project. According to the official introduction, ARPA is committed to providing private computing power and data security transfer solutions for enterprises and individuals. Based on the cutting-edge secure multi-party computing (MPC) cryptographic algorithm, the ARPA secure computing network can serve as a protocol layer (Layer 2) to provide privacy computing capabilities for any public chain, and empower developers to build efficient, secure, and energy-efficient computing on the ARPA computing network. Business applications for data privacy.A few days ago, ARPA released the Apollo two-stage rocket plan, which is planned to be launched at the end of the month.
Second-level rocket to the moon | 80 million ARPA pledge reward plan shockingly announced
, by analyzing it, we found that this is a model of "coin-based deposit and withdrawal, currency-based pricing and settlement", which is also a model used by a typical blockchain project.
In terms of static income, lock ARPA to become a node to obtain annualized income, the higher the locked amount, the higher the income. This method of obtaining income is the same as the Staking mechanism of many POS projects, except that it does not have the right to participate in project governance.
ARPA’s super nodes will have an annualized income of 24%-30%, which far exceeds the income of ordinary PoS projects. It is precisely because the node income has nothing to do with the consensus mechanism, it is also possible to add dynamic income gameplay. Recommend offline can get 10% of the income of the recommended node. For investors who do not have ARPA or are worried about the decline of ARPA, inviting others to become a node is a cost-effective thing.
Different from other projects, ARPA also innovatively proposes a reward pool mechanism, so that everyone who becomes a node needs to pay a part of the fee. All the fees go into the prize pool, and more rewards will be given to the nodes and lucky ones at the top of the pledge leaderboard, which will stimulate the participation of retail investors to a greater extent. A minimum pledge of 5,000 ARPA (about 150 USDT) can be used to participate in the lottery. Once a winner wins, everyone will receive a reward of 1% of the prize pool.
CITEX
The core of the ARPA model is to "lock in circulation". If the circulation decreases, tokens will not be issued in the short term, which is equivalent to a decrease in supply and an increase in demand, which will help the project's currency price increase. "Appearance model, in fact pulling the market" is the ultimate goal of currency-based deposits and withdrawals and currency-based settlement. Of course, this model also has many potential risks. When the tokens locked in the same period are unlocked at the same time in the future, they will definitely face huge selling pressure. This requires the project to launch more large exchanges during this period, do more activities, and enhance the liquidity of tokens. When the tokens are unlocked in the future, there will be enough liquidity in the market to prevent the currency price from being smashed.
In addition, as a blockchain project, the credit of the project party is also extremely important in the market. Since each transaction of tokens is transparent and checkable on the blockchain, the project party must unlock tokens according to the prescribed plan, and even lock tokens using smart contracts. If it is unlocked in advance or more circulation is released, it will lose the trust of the market, causing panic selling in the market, and the price of the currency will fall precipitously.
CITEX is a digital currency exchange. It launched the platform currency CTT in January 2019. The currency price has been very sluggish for more than half a year, but since July, the currency price has been rising all the way, rising by about 20 times. This is because CTT has made up its mind, which can be described as "a strong man cuts his wrist". In July 2019, CITEX announced that it would directly destroy 90% of the tokens. Most of these tokens belonged to investment institutions and the platform's own token reserves, while the tokens in the hands of retail investors did not change. This wrist-cutting action sacrificed the interests of large investors, but won the reputation of the market, and CTT subsequently entered an upward channel.
Recently, "Extreme Day Capital" and CTT jointly launched "Fission Mining". The "mode" is simple and rude, but it has attracted a large number of people to participate.
According to the previous classification, in terms of static income, this is a typical "gold standard deposit, currency standard withdrawal, gold standard settlement" model. Users use the stable currency USDT to participate in the model and release about 1% of CTT every day for the next 300 days , the amount released is CTT equivalent to the gold standard, and users can then sell CTT through the secondary market to obtain income.
CITEX's solution is to nest a repurchase model, using the income of the trading platform to continuously repurchase the platform currency to reduce circulation. When the trading platform has enough users, the fee income brought by these users can make This pattern continues to operate. In other words, this is CITEX using future earnings to buy current users. The fee income of the trading platform is not affected by the currency price. When the currency price drops enough, the same amount of funds may increase the currency price significantly. In the end, the currency price will stabilize in an equilibrium state, and the expected selling pressure is equal to the repurchase volume. However, this is all based on the fact that CITEX will have a stable cash flow in the future.
Summarize
secondary titleSummarize"Mode" is like a weapon, there is no right or wrong in itself, it depends entirely on the person using it. In the chaotic market, if you can get the continuous attention of the market, you may be able to survive, and when the blockchain really changes the world, you will still stand in this industry. Quoting Xu Yingkai, founder of BlockVC
Memoirs of a mastermind in the currency circle
For investors, the "model" must be a negative-sum game market of "Nine Deaths". Since they choose to obtain high returns, they must consider the risks involved-this is a game with a high probability of losing their principal. If you lose a bet, no one else is to blame, because if you make money, someone must lose it. Moreover, in this market, there are still a lot of possibilities that the casino will close after you exchange the principal into chips. Only by clarifying one's own investment creed and sticking to one's principles can one avoid being bewitched by countless temptations on the road. Only by keeping your own principal can you catch this rocket to outer space when the blockchain really changes the world.
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