Korazón Korean Won DAO(KKWD) — MakerDAO of KRW(Korean Won)

Julian Moon

Originally Published on May 29, 2024

Contents

1. MakerDAO of KRW(Korean Won)
2. Why Korean Won(KRW, ₩)?
3. Why Solana?
4. Why MakerDAO?
5. Why Korazón?

1. MakerDAO of KRW(Korean Won)

At least in the beginning, the Korazón Korean Won(KKW) and Korazón Korean Won DAO(KKWD) will be pretty much a fork(a copy of source code just like SushiSwap) of DAI and MakerDAO in Solana version, so this article will skip all the technical and economical issues covered by the MakerDAO whitepaper and get straight to the points why we need another MakerDAO specifically focusing on Korean Won.

2. Why Korean Won(KRW, ₩)?

1. A strong demand from Koreans — Korean won surpasses US dollar as most-traded currency for crypto. Just like any localization including but not limited to local languages and cultures, the localization of stablecoin from USD to KRW will lead to a huge demand in stablecoin in the Korean crypto market. Remember, Korea is one of the handful of countries that Google and WhatsApp failed to dominate the domestic market.
2. The unique choice for many Korean exchanges — The Korean Won stablecoin may provide a great liquidity for non top-tier exchanges. Due to Korean authority’s strict stance on crypto, there has been only 5 exchanges that managed to secure an option for linking users’ bank accounts. The rest is operating without a KRW support, a critical mismatch in localization for local businesses. Furthermore, it has shown that the adoption of USDT allowed Korean exchanges to boost their trading volume. Nonetheless, there is currently no available Korean Won stablecoin in the market. There is no doubt that all Korean exchanges will welcome the new Korean Won stablecoin.
3. The solution for “Kimchi Premium”— The Korean crypto market has an appreciation of prices in crypto such as Bitcoin, Ethereum, Solana, etc, due to its closed market. It’s called “Kimchi Premium”: the appreciation of crypto price in comparison to the overseas markets. What’s worse, South Korea became the first country to implement the Travel Rule in virtual asset transactions on March 25, 2022. This led to an even worse environment for facilitating “Kimchi Premium”. The “Kimchi Premium” is not only the problem to be resolved for bringing a healthy market for Koreans, but also a great motivation for Koreans to voluntarily make an effort for the Korazón Korean Won DAO to function and earn fees based on the arbitrage model of MakerDAO and DAI, because the price difference between the market creates a reason for the Korazón Korean Won DAO to stay active with continuous transactions.

3. Why Solana?

While Ethereum is a much more stable chain than Solana without a doubt, Korazón Korean Won aims to be a real-world use case not limited to DeFi. In other words, Korazón Korean Won will strive to be used in the real world as a payment mean without a need to depend on Layer 2 or off-chain solutions.

4. Why MakerDAO?

Since 2017, DAI and MakerDAO has been a long-standing DeFi protocol in the Web3 industry. It’s the one of the largest Decentralized Autonomous Organisations(DAO) and was the first DeFi project to receive notable adoption on the Ethereum blockchain. In the Web3 and blockchain industry, the history and proven track are very important as everything is an experiment in this field and users’ life-savings dismembers in an overnight. This is why we have chosen to basically fork the source of MakerDAO and start out by copying the way MakerDAO has proven over the past few years.

5. Why Korazón?

Korazón is a successor of “Koolpeace: The Korean Metaverse” founded by Julian Moon. We want to make this first widely popular Korean Won stablecoin shine under the unified brand named “Korazón”. With that said, this is not an overnight project for a quick money. Korazón Korean Won has a grand plan for a mass adoption not only as real-world payment mean in partnership with Confío but also as a virtual-world payment mean in partnership with “Korazón: The Korean Metaverse”(rebranded from “Koolpeace”). It’s just the same strategy as BUSD(Binance USD), which was issued and run by Paxos, but under the brand name of Binance for marketing. In summary, Korazón is a brand name of an Korean Metaverse for all things Korea. Korazón Korean Won is a Korean Won stablecoin that will be used both in real-world and virtual world including “Korazón: The Korean Metaverse”. Korazón Korean Won DAO is a DAO that controls and manages Korazón Korean Won.

Community:

Korazón Korean Won DAO ($KKWD)

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