IGO may be another blockchain boom after DEFI
The distribution method of cryptocurrency project tokens is a very important part of the entire project ecology. If a reasonable token economic model can be designed to encourage various stakeholders in the system, it will play a vital role in the development of the project.
DEFI gradually returned to calm
Liquidity mining directly drove the rapid development of the DeFi protocol. With reference to DeBank data, after the milestone event of Compound ‘s online lending, namely mining, the locked-in assets of all DeFi protocols increased from the original 1.1 billion U.S. dollars to a maximum of 2.6 billion U.S. dollars.
Everything has a threshold, especially in financial markets. The DEFI project gradually no longer possesses the initial high cost performance and loses its wealth effect. The following is the recent trend of DEFI projects.
- The compound has fallen from the highest point by nearly 60%
2. The most well-known decentralized exchange IDEX platform token gradually returns to calm
3. The high point of the well-known DEFI project AMPL project fell by 70%
Why can’t the DEFI project tokens maintain high growth?
The author analyzed the token economic model of the DEFI project and found that there are several reasons for the overestimation of the token value:
The first is that the use of tokens is relatively single:
Summarizes several DEFI token-use items, which are mostly used for ‘ Community Poll governance ‘ , the equivalent of a decision made in the community or submit changes to a product, you can manage project processes using tokens vote . One coin, one vote is ultimately determined by the principle of minority obeying the majority to determine the DEFI product change. Such a single token function is destined to lead to limited value.
The second is the reward mechanism:
‘ Liquidity mining ‘ is the DEFI market to provide liquidity receive a free Token , meaning that even if I do not have borrowing needs, as long as I provide encryption money involved, you can free ‘ and gather wool ‘ , which contributed to the generation of foam , A large number of wool parties were born, which led to the overestimation of prices. After the wool parties appeared, the prices were unsustainable.
The third is that DEFI is always a single field product:
DEFI is full of limitations. The limitations are mainly reflected in the single industry ( borrowing ) and single function ( providing liquidity ) . Its limitations make the market unable to recognize higher valuations.
Is it possible for IGO to become the next outlet?
IGO , the full name of Initial Game Offering , is the first game release. Tokens are issued during the game, so that the value of the tokens can be effectively supported.
What are the advantages of IGO and DEFI ?
IGO higher distribution costs, avoid DEFI in ‘ wool party ‘ arise, can effectively avoid wool army Kuaijinkuaichu bring price spikes and fall. Compared with DEFI , IGO can guarantee a long-term price increase
The IGO issuance process is more conducive to promotion. Compared with DEFI, which requires new players to register and learn about the operation process of a decentralized exchange, IGO ’s learning cost is lower. It often requires only one app to complete all operations, which is convenient for promotion. At the same time, IGO is for the entire industry The form of education also brings imagination.
IGO ‘s economic model is relatively more complete
DEFI ‘s token has a single purpose, while the value of IGO ‘s token is closely related to the function of the product. IGO tokens can be customized according to the direction of the development team’s product requirements: public chains such as EOS and ETH or other consortium chains. No longer think that DEFI products are limited to a single field.
Silicon Valley’s latest star project STAR
According to Interstellar’s official website, STAR , the latest star project in Silicon Valley, is the world’s first token using the IGO economic model . The future goal of the project is to build a public chain of the game industry, seize the trillion-dollar market in the game industry, and break the current development of the game industry. The unequal relationship among the three roles of business, platform business, and player. Interstellar only token STAR using the game that is the way of mining, destruction of side issue side, initial circulation of 2 million to complete the destruction of 1 that is open at 100 million DPoS node (currently in a tense test), the future is full of imagination.
Relevant information:
Debank
Coinmarketcap
Interstellar Official
The market is risky, this article is not an investment recommendation
