Creating Fundamental Value in Cryptoassets
Solving crypto’s #1 issue of having no ‘real’ value
The Problem
The largest problem that cryptocurrency faces is the fact that it is still 100% speculative. Sure, we can argue about bonding curves, automated market makers, yield farming, tokenomics, etc. But the truth is, as we all know it, that crypto, as it stands, is a game of hot potato. Whatever new group happens to come up with some new novel concept is the flavor of the week until the Twitter influencers decide on the next best thing which is usually right after they exit.
This is solely why cryptocurrency will never be taken seriously in its current form. Anyone who states otherwise is lying to themselves. No serious professional will ever look at cryptocurrency as a serious financial instrument without fundamental changes in what is perceived as value in the space.
The community seems to think that if we make up brand new terms and recreate existing structures of the financial system, then people will take us more seriously or we will eventually ‘liberate’ ourselves from the stringent financial system that holds us down. This is non-sense. Most people are in it for the fast money. The line between gambling and cryptocurrency picks is so slim that it’s often invisible.
This has always been a line in the sand for Lamden. We have refused to play the popular game of hot potato and focus on developing something with true utility. Now that mainnet is here, we have a huge sandbox to experiment in and come up with cool stuff. In this sandbox, we believe that we have come up with the solution to this problem and created the first actual fundamental value system in crypto.
The Solution
In Lamden, a portion of the transaction fees goes to a developer account. This is part of the governance model. The developer is by default whoever submitted the smart contract in the first place. This allows users to make a popular smart contract and benefit by default. The developer can change that account to whoever they want so if they no longer want to maintain the project, they can pass it onto someone else.
However, the developer can also change it to another smart contract. This is where things get interesting.
The developer changes the account to a special smart contract which is a token. The token has a special function added to it that allows users to ‘redeem’ their coins. By redeeming their coins, they are entitled to a percentage of the developer fees that have been accrued in the contract.
Now, the application itself has its own token which is tied to the popularity and profitability of it. It is not speculative because there is always an option to redeem the tokens for actual value at any point in time. This is the core fundamental aspect. The speculative aspect on top can be whatever the market perceives.
This eliminates the need for creating new systems that people don’t really care about but pretend to so that they can justify buying it. No one really wants governance and governance itself does not lead to any intrinsic value. Developer rewards are actual value. Holders of the token are now motivated to increase the rewards to increase their potential profit. This emulates a more traditional board in capital markets.
We think that this new paradigm will revolutionize the way that projects fund themselves. If you are interested in taking part in this journey with us, come to our Telegram and let’s make something great: https://t.me/lamdenchat
