DAFI Protocol announces partnership with Terra Virtua Kolect to introduce a new Staking Model
- DAFI Protocol and Terra Virtua Kolect ($TVK) are partnering to introduce an improved staking model for the TVK ecosystem.
- The new system will issue network pegged synthetic tokens, dTVK tokens.
- These synthetic tokens are designed to be algorithmically pegged to the demand of $TVK
DAFI protocol is excited to announce our latest partnership with the digital collection blockchain-based powerhouse Terra Virtua (TVK). The platform will integrate DAFI’s synthetic smart tokens into their ecosystem to create a new staking model that provides enhanced rewards for long-term users of the Terra Virtua ecosystem.
Jawad Ashraf, Terra Virtua CTO & Co-Founder, stated,
“TVK has experienced huge user growth over the past few months. To cement our development and continued expectations for future success, it was only natural we partner with DAFI Protocol and introduce an improved staking model to our community.”
DAFI’s founder, Zain Rana, continued the positive sentiment, stating,
“Terra Virtua has made great moves in the mass-market NFT ecosystem. TVK has partnered with powerhouse names such as Paramount Pictures and Legendary Entertainment, in order to reward longer term users better; it has been a natural choice for them to turn to DAFI.”
dTVK tokens will ensure a fairer distribution mechanism
A balanced ecosystem with critical features that adequately complement each other is crucial for a decentralized project’s success. Current token distribution mechanisms can introduce lopsided staking features and mechanics that can have long-term negative consequences. One of the most damaging complications of this is hyperinflation caused by their ill-considered token distribution and staking mechanisms of high issuance during stages of low demand.
The individuals who stand to gain the most are in it for the quick rewards, with little indication of a longer-term commitment. Unfortunately, this leaves the loyal users who believe in the project’s mission on the downside of this due to the supply shocks.
DAFI Protocol has designed an ingenious yet simple solution that aims to eliminate such practices through the use of synthetic smart tokens. These tokens are designed to incentivize long-term commitment to the project through the regulation of token distribution. Our dTokens are pegged to the demand of the actual native token ($TVK) such that distribution changes proportionately to the demand of the native token, thereby safeguarding the ecosystem and encouraging an increasingly robust community.
Terra Virtua can leverage dTokens to issue network pegged synthetics instead of their native $TVK token through their new, improved staking model. Because they are algorithmically designed to increase or decrease based on demand, the changing rewards achieved by dTVK will incentivize users to shift from a short-term to a long-term mindset, which creates sustained value for the platform’s growth. The dTVK tokens can then be burnt for $TVK tokens upon user request.
Through a strong emphasis on scarcity, DAFI, networks will stay increasingly resilient against any possible supply shocks. This will allow for the increased network adoption for every decentralised network and its ecosystem. We’re very proud to work with Terra Virtua and to provide this industry-leading service to the platform.
About Terra Virtua
Terra Virtua is an immersive NFT blockchain-driven VR and AR entertainment experience. By emphasizing a strong community and social connection with Terra Virtua, the TVK ecosystem is built around different environments designed to allow users, whatever their interest, to immerse themselves in the things they fully love.
About DAFI Protocol
DAFI reinvents how every decentralized network is rewarded. By creating synthetics pegged to different decentralized networks, every blockchain and cryptocurrency can create a dToken flavor to reward their early users while still enhancing scarcity when demand is low.
Our mechanism rewards a network even when demand declines by issuing synthetics that will reward users later — instead of earlier. This approach will change the foundation of all staking, liquidity, and even social reward systems for the entire decentralized world.