What is Power? Frag’s latest dapp brings Power to the Tron Network.
It is designed as a financial experiment which seeks to deliver sustainable passive income to players through an autonomous & immutable system of growth. The core principle of the experiment is that Power is a scarce asset
which is pegged to an always increasing target price, which makes it unique and more desirable compared to stablecoins which are typically pegged to a fixed $1 price 💵.
So how does Power work? ⚡
Purely proclaiming an asset has a target price is not sufficient to keep its price, so FragPower provides decentralized & autonomous mechanisms to maintain its target price:
- If the dex price falls below the target price then the entire circulating supply of Power constricts (making Power more scarce).
- If the dex price rises above the target price then the entire circulating supply of Power expands (making Power less scarce).
These economic measures assist in offsetting any supply & demand mismatch over time through slowly manipulating the market supply.
An example: Power began with a target price of 1 Frag which increased to 1.3 Frag after 10 days, however the dex price is only 1.2 Frag, therefore every hour the circulating supply of Power decreases by 1% until the dex price is above 1.3 Frag. Assuming you started with 10 Power then after one day of supply-constriction you would be left with 7.8 Power to trade, this reduced supply in theory provides an increased price per Power until it is back over the target price and then supply-expansion will begin.
This process occurs autonomously & indefinitely, providing an unstoppable decentralized finance (DeFi) system of growth for everyone equally! 🌍
The FragPower protocol also comes with a timelock system, this mechanism allows players to freeze their Power which keeps it immune to supply changes (such as constriction) allowing a player to passively grow their portfolio as Power’s natural price increases with the peg.
UPDATE: FragPower is now live and you can play it here!