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  • Welcome to Nash21
  • Team
  • Contact
  • WHITEPAPER
    • Prologue
    • 1. Introduction
      • 1.1. Creating equations to open new doors
      • 1.2 Mission and Vision
      • 1.3. Working of Nash21
      • 1.4. Uses and Participants
    • 2. Operational working of the protocol
      • 2.1. Tokenisation and use of the Rental Contract
      • 2.2. Application for “Nash21 Guarantee” by the Tenant
      • 2.3. Buying and Selling of NFTs
    • 3. Nash21 Guarantee
      • 3.1 Introduction to the Nash21 Guarantee
      • 3.2. Components of the Guarantee Fund
        • 3.2.1. Introduction
        • 3.2.2. LCA or Liquid Capital for Administration
        • 3.2.3. RF or Reserve Fund
        • 3.2.4. MCR or Minimum Capital Risk
        • 3.2.5. YRF or Yield of the Reserve Fund
    • 4. Protocol revenues
    • 5. Tokenomics
      • 5.1. “Protocol Controlled Value (PVC)” Strategy
      • 5.2. N21 tokenholder strategies
      • 5.3. Intrinsic nature of N21
      • 5.4. Monetary Policy
        • 5.4.1. Token distribution
      • 5.5 Governance
        • 5.5.1. Governance Fund
        • 5.5.2. DAO Foundation N21
    • 6. Roadmap
    • ANNEXES
      • Annex 1. Aspects of the internal process of Nash21
  • USER GUIDES
    • Guides to understanding Nash21
  • How do I tokenize my rental agreement?
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  1. WHITEPAPER
  2. 5. Tokenomics

5.1. “Protocol Controlled Value (PVC)” Strategy

Bearing in mind that, due to its nature, Nash21’s field of action lies both in the real world and in DeFi, the tokenomic model designed follows a Protocol Controlled Value (PVC) Strategy. This is because, in order to safeguard the robustness and sustained growth of the protocol, it is vital to prevent abrupt fluctuations in the capital administered by the Treasury & Guarantee Fund. To do so, and given that the current state of DeFi consists of fragmented, unpredictable and expensive liquidity, with the model chosen we focus the effort and participation solely on liquidity providers that are genuinely convinced and engaged with Nash21.

Hence:

  • We avoid speculative capital (42% of the yield LPs that enter a farm on the day it launches exit within 24 hours. Around 16% will exit within 48 hours, and by the third day, 70% of these users would have withdrawn from the contract).

  • We eliminate the need to depend on Whales to receive liquidity.

  • We eliminate the liquidity incentive policies which result in expensive plans of issuing tokens.

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Last updated 3 years ago