Understanding $BDY, The Buddy DAO Governance Token You Must Know About
Ahead of the BuddyDAO protocol launch, we’re excited to share more insights and important details on the platform’s governance token — $BDY. The token will benefit holders to share in fee revenues, participate in protocol governance, and stake insurance to Liquidity Pools.
BuddyDAO is the first guarantor-based DeFi lending platform that is aimed at building a Decentral Bank where anyone can get a loan in just a few seconds. Buddy allows borrowers to experience a transparent, efficient, and uncollateralized financing done entirely on-chain. For liquidity providers or investors, it offers a sustainable yield source through professionally managed lending pools. They can hold high-quality digital asset-backed loans for as much time as they want and get fixed and guaranteed returns.
The guarantors will be able to generate interest from crypto assets without selling anything.
With that said, everyone in BuddyDAO will be protected and profited. Now, let’s talk about the official BuddyDAO token $BDY.
The $BDY Token & the Governance Mechanism!
$BDY is the native token of BuddyDAO protocol which plays an important role in Governance.
Governance
Buddy DAO Protocol is empowered by $BDY Token, a governance token that guarantees and
incentivizes the improvement of the protocol over time. If the platform moves towards its journey ahead, the $BDY holders will be responsible for on-chain governance to bootstrap the long-term sustainability and prosperity of the Buddy DAO Protocol. The $BDY Token holders can submit and vote on proposed changes to the platform, including adjusting fees, minting, or burning $BDY Tokens, and any other changes in the protocol. However, if $BDY holders don’t want to participate in governance themselves, they’ll have the option to delegate their voting rights anytime.
The $BDY tokens fuel the BuddyDAO governance mechanism and can be staked in on-chain voting for improvement proposals. Here are the following features that $BDY offers for governance –
- Adding new crypto assets or stablecoins to the protocol
- Adjusting variable interest rates for all markets
- Adding a new market for different maturity.
In the Alpha version, a certain amount of $BDY tokens will be allocated to all borrowers, lenders, as well as guarantors as rewards to boost the initial liquidity of the platform. The amount of the tokens can vary as per the market condition.
Let’s say, there are more borrowers than lenders, so more rewards will be given to
Lenders, or vice versa. The rewards can be claimed at the end of the day.
Platform Fees
The alpha version will initially run the Binance Smart Chain (BSC) for low gas fees and fast confirmation time.
$BDY Distribution
At genesis, 10,000 $BDY tokens will be minted to economically incentivize community participation and distributed with different airdrops.
$BDY Launch
We’ve been humbled by the excitement from our community around the launch and want to make sure that the Buddy community will be able to participate by early next year.
We’ll be releasing more details before the launch.
Join the Buddy Community
We’ll be sharing more information on the BuddyDAO protocol ahead of our launch. If you’re interested in learning more and getting involved with Buddy, join us here –
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