Adirize DAO: Tackling price volatility with niche features
Adrize DAO is a cryptocurrency exchange platform that has its own native token, ADI. The token is an algorithm reserve currency that is backed by a reserve of assets. Users can purchase the ADI Token on presale.
What sets the token apart is that it is less volatile than other leading cryptocurrencies which are usually pegged to a fiat currency. Hence, if the value of the fiat currency falls, so does the price of the cryptocurrency pegged to it.
Built on the decentralized autonomous organizations (DAO) principle, Adrize DAO tends to address the problem by building a free-floating reserve currency that is supported by a reserve currency. It aims to keep the price of the ADI Token stable by focusing on supply expansion rather than price appreciation. What helps in supply expansion is the platform’s protocol-run treasury, protocol-owned liquidity pool, staking rewards, and bond mechanism. As the protocol generates revenue from bond sales, the treasury utilizes it to mint the ADI Token and then the same are distributed as staking rewards. This way, the protocol collects liquidity by utilizing liquidity bonds.
The ADI Token has two main use cases, staking, and bonding. With staking, Adirize accrues value to the ADI Token and helps it become a store of value and not just a mere stable coin. The process of staking on the platform is fairly simple. Users can either purchase the token in the open market or trade their liquidity for ADI Tokens. Next, they can use the Adirize app to stake the tokens in exchange for incentives like more tokens. The platform depends on bonding to generate incentives and for locking up liquidity.
Considered to be a short-term strategy, bonding achieves the purpose of accumulating value for the treasury, while staking helps in keeping the supply of tokens limited. ADI token holders also get the opportunity to vote for important proposals pitched by other community members concerning operations decisions, future projects, and upgrades.
Adirize DAO (ADI)