What is ValuesDAO and why should you pay attention to it?




ValuesDAO is partly a fork of OlympusDAO but with a few twists of its own thrown in, including the offer of NFT Reserving for the metaverse space.

Values is the Metaverse Reserve Protocol on the Polygon Network and is based on the $VALUES token. Each $VALUES token is backed by a basket of assets in the Values Treasury (giving it an intrinsic value that it cannot fall below), which currently includes the MAI stablecoin and in the future, USDC, FRAX & other stablecoins. Values Protocol will also offer the possibility to use NFT tokens to back the Treasury’s liquidity.

ValuesDAO’s goal is to build a policy-controlled liquidity system for the NFT metaverse space, one where the behavior of the $VALUES token is controlled by the DAO at a high level. In the long-term, this system can be used to optimize stability and consistency so that $VALUES can function as a global unit of value and a medium for exchanging currency in a decentralized metaverse. However, in the short-term, the ValuesDAO system is optimized for the growth and creation of wealth for its users.

Wealth accrual strategy for users
ValuesDAO users currently enjoy pretty stable 200 ~ 300% APY average and much much more is possible as its still early days for ValuesDAO.

Staking is the primary value accrual strategy of ValuesDAO for users. Staking is a passive long-term strategy, where users experience the growth of the network. Stakers stake their VALUES on the ValuesDAO website to earn rebase rewards. The rebase rewards are minted every 24 hours and automatically distributed to users’s wallets. This is guaranteed on the smart-contract level.

Bonding is the secondary value accrual strategy of VALUES for users. Bonding is an active, short-term strategy. It allows ValuesDAO to acquire its own Treasury liquidity and other reserve assets such as stablecoins by selling VALUES token at a discount. Bonding is considered a more active investment strategy.

Why should crypto investors stop investing in ICO’s and start investing in DAO’s such as ValuesDAO? And more importantly, what’s so different and unique about ValuesDAO compared to the ICOs we’ve all lost money on?

ValuesDAO is the antithesis of an ICO. The ICO model is a failed model for raising money for unproven project ideas, most of which never produced what they promised to investors; ICO teams wrote whitepapers about what they could do if they collected a lot of money, then they created millions of tokens with no value and kept a bunch for themselves and early investors. Then assigned a random price to the tokens and sold them while promising to list the token on a famous exchange, where the coin “would go up by 10 or 20 times” in value. This was usually followed by the ICO teams burning through the collected funds on advertising, extremely expensive offices and tons of high-paid staff. However, these projects mostly only created a shadow of what they promised in their whitepapers (or some half-baked version of it, or nothing at all), leaving their investors’ tokens to flatline on some semi-popular exchange.

The ValuesDAO team on the other hand, did the exact opposite – they spent their own tie and funds to build and launch a fully-tested and working system that already had value and utility even before selling any tokens. This increases the value of users’ assets from day one. Wow, imagine that, a token that actually has value and utility from the moment you buy it! In fact, your holdings are always increasing as long as you are actively staking it, no matter what the market conditions may be. And don’t forget, users’ Values tokens will NEVER drop below an intrinsic value since they are backed by stablecoins in the ValuesDAO Treasury. No ICO project could ever promise that their token would never drop below a certain value.

Find out more about how it works in the ValuesDAO documentation

About the author, Declan Yin

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