TOKENOMICS: CHACHA’S ECONOMY AND IMPLICATIONS
Sometimes, the esoteric vocabulary associated with crypto tokens do nothing other than scare investors and clients from dissecting and appreciating a project’s economics and concepts.
Although these vocabulary is usually necessary to achieve uniformity within professional contemporaries and to uphold best standards of the profession they would be most useful if they could be understood by the average reader who is interested in knowing.
In the coming paragraphs, I’d run you through some of these economic concepts to offer clarity where there is none.
BASIS:
Chacha Finance domiciles it’s token called “Chacha” and makes available 1,000,000 pieces of it for supply.
This supply is then distributed in the manner that forms the core of Chacha’s tokenomics and will be elucidated below.
- AIRDROP, MINING, COMMUNITY PROMOTION:
Airdropping has recently become one of the most popular methods of marketing and promotion for many crypto companies and communities all around the world either to gain attention or spread name in the hope to increase the size of the existing user base.
To further entrench the significance of it’s communities, Chacha Finance distributes 40% of it’s total supply to this purpose.
2. LIQUIDITY MINING:
Liquidity mining is a decentralized finance mechanism wherein participants provide some of their crypto assets into various liquidity pools, from which they’re rewarded with tokens and fees. Liquidity mining takes advantage of the immense hype behind decentralized finance (DeFi) while allowing investors to use their holdings to generate additional income.
Chacha finance distributes 15% of it’s total supply to this purpose totaling about 150,000,000 pieces in quantity.
3. TECHNICAL TEAM AND OPERATION TEAM:
To be in charge of management, the technical and operations team of Chacha Finance do a lot. The technical and operations team manages the technical department and plans, coordinates and organizes all technical processes. They ensure that all projects meet their outlined technical requirements.
To this effect, Chacha finance generously distributes 20% of it’s supply; totaling about 200,000,000.
4. FUNDRAISING:
Fundraising takes place via an initial coin offering (ICO), IEO and IDO (Exchange and DeX Offerings)
Initial exchange offerings (IEOs) raise capital on a cryptocurrency exchange. Like ICOs, tokens are sold prior to their public listing while an initial decentralized exchange offering or initial DeX offering (IDO) allows users to swap their crypto for new token offerings.
In furtherance of this, Chacha distributes 10% of it’s entire supply.
5. FOUNDATION OF CHACHA:
Chacha foundation is a beneficiary of around 10% of it’s total supply.
6. DAO GOVERNANCE:
Governance tokens represent ownership in a decentralized protocol. They provide token holders with certain rights that influence a protocol’s direction. This could include which new products or features to develop, how to spend a budget, which integrations or partnerships should be pursued, and more.
Generally speaking, exercising this influence can take two forms. First, governance token holders can propose changes through a formal proposal submission process. If certain criteria are met and the proposal goes to a vote, governance token holders can also use their tokens to vote on the proposed changes.
For this cause, Chacha Finance distributes 5% of it’s total supply.
The intention of the article being to simplify esoteric vocabulary surrounding the tokenomics of Chacha Finance will be furthered by minor research using any of our resources such as;
