CNTR vs WHEY Token Comparison
Centaur is on a mission to merge traditional finance with the world of decentralised finance. Through Centaur, traditional financial applications can benefit from the transparency of a decentralised architecture while still enjoying the regulatory control and fail-safe security layer of a centralised system.
To further Centaur’s mission, Centaur uses a two-token architecture for smooth operations. The tokens in the Centaur ecosystem are,
- $CNTR — the utility and the ecosystem governance token
- $WHEY — the governance token for Centaur Swap
The following article is a quick overview of the difference between the two tokens and how they work together in enhancing the Centaur experience
But first, what’s the Difference Between Utility and Governance Tokens?
A utility token activates a utility programmed into a smart contract running on a blockchain system. The ERC-20 Token standard of the Ethereum network is the most popular utility token standard. Any utility can be coded into a digital contract. For example,
- On Genesis Shards (which is one of Centaur’s Partners), the $GS token is used for creating and investing in pre-IDO liquidity vehicles.
- Similarly, $ARTH is used for maintaining buying power with the first non-depreciating value-stable currency on MahaDAO
Governance tokens are a special class of tokens that give the holders the right to vote on protocol issues. These issues can be as follows,
- changes to the protocol
- adding new liquidity mining pairs
- adjusting trader transaction fees, and thus LM yields
Governance tokens give the power to the community over the protocol direction. Due to this reason, Governance tokens are in high demand.
With that difference between Utility Token and Governance token cleared, let us look into the two tokens of Centaur.
Let’s first begin with the main token — $CNTR,
The $CNTR Token
$CNTR is the main token of the Centaur ecosystem and is used for the governance of the entire ecosystem which includes the future mainnet, Hadar wallet and other upcoming initiatives. Apart from governance, the token also acts as an incentive mechanism for the entire ecosystem.
Moreover, $CNTR tokens are also required to run a validator node for the Centaur Chain. Once it’s made public, any individual can become a validator by staking CNTR, putting up CNTR as collateral.
$CNTR is an ERC-20 token and there is a total limit of 6,000,000,000 $CNTR.
The $WHEY Governance Token
$WHEY is the governance token for Centaur Swap. It is a new token that operates on a fair-launch structure, that is, there were no fundraising rounds for the $WHEY token so governance token holders do not have to worry about dilution events impacting the tokens.
$WHEY token holders have governance rights and therefore are able to vote on decisions relating to Centaur Swap such as the onboarding of different chains or adjustment of transaction fees (currently 0.2%). It’s important to note that $WHEY only works on Centaur Swap.
Liquidity providers to Centaur Swap earn $WHEY governance tokens, which are distributed on a per-block basis when they stake their tokens to a liquidity pool. $WHEY holders can liquidity mine their $WHEY tokens and earn yield.
And that’s the major difference between $CNTR and $WHEY. Centaur would be airdropping $WHEY to the Centaur community on October 12th (Learn More).
By combining the best elements of decentralised finance with measured regulatory control, Centaur is bridging DeFi and traditional finance. For more information, please visit our website, join our Telegram community discussion group and announcement channel.