DAFI Protocol helps Polkalokr introduce new staking reward mechanism to power decentralized economies
One of the disadvantages of decentralized finance is hyperinflation, which tends to discourage long-term investments in the ecosystem, consequently affecting the growth of this nascent economy.
DAFI Protocol has addressed this issue by creating a new rewards distribution model leveraging the power of blockchain technology. For the first time ever, entrepreneurs and developers alike can take advantage of this new mechanism to create synthetics to limit excess supply in Proof-of-Stake protocols.
In a new strategic partnership, Polkalokr would be looking to integrate DAFI’s state-of-the-art staking reward mechanism to set a strong foundation for incentivizing $LKR holders in a demand-pegged manner.
Polkalokr integrates DAFI to minimize the impact of rewards distribution during cycles of low demand
Polkalokr, a multi-chain token locking and escrow platform, would be integrating DAFI’s synthetic dTokens to incentivize long-term $LKR holders. By distributing staking rewards based on the network’s demand, the omnichannel digital protocol will be relieved from hyperinflation.
dLKR tokens are essential for Polkalokr to control the number of $LKR put into circulation and maintain equilibrium between supply and demand.
DAFI’s rewards model will come into effect during times of low demand by reducing the tokens in circulation and increasing incentives to stakeholders. These salient features reinforce how Proof-of-Stake protocols should have been modeled in the first place.
Imran Ashfaq, CEO at Polkalokr, believes that DAFI’s technology could significantly contribute to the adoption of the protocol.
“This collaboration will be vital in exploring unparalleled possibilities and serve as a foundation of growth for both parties involved. By employing DAFI’s model, our incentives to long term users and early adopters will be greater. Dafi will be able to provide increased transparency and user confidence through Polkalokr’s suite of products and services.” said Ashfaq.
The use of Polkalokr’s versatile products and services, primarily for locking, distributing, monetising, insuring and swapping tokens, can help bring more transparency in the DAFI community if implemented as well as the DeFi markets in general.
As a highly customisable token locking platform for token economics, Polkalokr offers a suite of modular building blocks for all needs, developing seamless, omni-channel digital platforms with superior user experience for restoration of trust and ease in complex token ecosystems.
According to Zain Rana, founder of DAFI Protocol, the team of developers are currently exploring possible ways to integrate Polkalokr’s technology into DAFI’s ecosystem so that both blockchain startups can benefit from the partnership.
“The integration of blockchain technology and decentralized finance is ushering a financial revolution like never before. However, there are many issues yet to overcome to drive adoption. With DAFI’s unique inflationary model, we are redefining reward distribution according to changing network demands. Infusing dTokens into Polkalokr’s ecosystem will drive the way for long-term growth and utility of the platform,” said Zain.
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.
DAFI can reward a network even when demand declines by issuing synthetics that will reward user’s later — instead of earlier. This approach will change the foundation of all staking, liquidity, and even social reward systems for the entire decentralized world.
Polkalokr is the first all-in-one, multi-chain token locking and escrow platform with built-in privacy functionality. Its products, LOKR and SWAPR, help build trust within the Defi space by removing the human element and focusing on governance through code, with a seamless, omni-channel digital experience platform.