MahaDAO
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MahaDAO

What is MahaDAO?

This article will be continually updated and is meant to provide a holistic overview of the project for readers, both old and new to MahaDAO

There was once a time when inflation was uncommon and hyperinflation wouldn’t exist, as governments could only increase the supply of money in line with the supply of gold reserves that they held. In the 50 years since the Bretton Woods system was dissolved, neoliberal and monetary policy have combined to deliver phases of tremendous growth, but at the expense of endless cycles of economic crisis, collapse, and chronic inflation.

The recent Covid-19 pandemic has had a devastating economic effect, but let’s not forget the fact that the global economy has been limping along under an increasing debt burden. In the US, for example, national debt now stands at a staggering $26.7 trillion. This addiction to borrowing is driven by weak economic growth, leading central banks to continually squash interest rates and engage in shady practices of monetary financing, also known as printing money out of thin air. This causes a currency’s value to depreciate and given the USD’s position as a world reserve, every currency is de facto depreciatory.

To combat the spiral of decline, we at MahaDAO set about a mission to correct this systemic flaw, tasking ourselves to design and create an asset that protects the buying power of the holder.

Introducing ARTH, a decentralized non-depreciating algorithmic form of currency, that ensures stability in buying power over time as opposed to stability in price. In this article, we outline the ARTH coin and its mechanism, but firstly what is MahaDAO?

MahaDAO: A new way

MahaDAO is a decentralized autonomous organization that is governed by the MAHA community. The MAHA token holders are at the helm of all decision making and play a central role in fulfilling MahaDAO’s true potential.

The MahaDAO ecosystem features 2 tokens: MAHA and ARTH.

MAHA: The governance token

MAHA, as the name signifies, refers to a supreme, magnanimous, greater than itself characteristic, which the MAHA governance token embodies. Community members use MAHA to vote on key aspects of the ecosystem in order to collectively manage the parameters that keep ARTH stable and in check. In short, MahaDAO is guided by the MAHA holders, who determine the various activities and updates within the ARTH ecosystem.

The primary responsibility of all MAHA token holders is to ensure the stability of the ARTH valuecoin.

ARTH: The valuecoin

ARTH is the world’s first valuecoin. Every time users stake their volatile collaterals in a CDP, they generate more value stable ARTH coins. ARTH is an absolute unit of measure that maintains the buying power of the token holder, irrespective of which direction the market moves and is backed by stable uncorrelated assets.

ARTH is a viable successor to stablecoins, which in themselves are depreciating as discussed earlier in this article.

What is a valuecoin & how does ARTH ensure its value remains stable?

Simply put, a valuecoin is a currency that is stable not in price but in value. As opposed to a stablecoin, a valuecoin never erodes its intrinsic buying power. If a cup of coffee costs 2 ARTH today, it would cease to cost higher in the future. It will cost 2 ARTH 5 years, 10 years down the line, if not less.

We’ve reengineered the reserve vault introduced by MakerDAO, with some key changes to create a valuecoin that maintains buying power rather than a stablecoin pegged to a depreciating currency. The vault acts as a regulator, managing the underlying collaterals locked in, used to generate and back the ARTH token.

In the example below, we posit a straightforward scenario in which we base ARTH on a 1:1 weighting of two assets, A being USD and B as GOLD, both measured against CNY over the last 3 years.

In this example, we can see the price of USD increasing, whilst gold fluctuates. Here, the vault automatically rebalances to its true value by selling off the excess USD for gold, signified by the gradual decline in ‘A held quantity’ for an identical uptick in ‘B held quantity’.

In comparison to MakerDAO, which mints new DAI as the asset appreciates, our mechanism uses this increase in value to buy more of the underlying collaterals, thereby reinforcing ARTH with this extra value. As in the example, our vault’s algorithm is up 40% after inflation.

A simulation with a vault with 50–50 USD and Gold backing; with buying power measured in CNY

In the unlikely case that the absolute value of the basket of asset declines, a safety net is in place to preserve the value of ARTH. Similar to a stop-loss order on an exchange, if the assets backing ARTH dilute past a certain threshold, ARTH buys back the collaterals in the vault, in effect, burning the ARTH and releasing the collaterals.

The vault system outlined is the backbone of ARTH and when you consider the traditional finance system, plagued by inflation, most fixed deposits with banks are in the negative. This fuelled our motivation to design the ideal store of wealth, to combat unwanted depreciation, slowly eroding hard-earned savings.

As the ecosystem grows, ARTH will be backed to a larger basket of assets, with new and exciting combinations. You can sit back in peace knowing that regardless of the direction the underlying collaterals move toward, ARTH appreciates.

Features/Value Propositions/Use Cases

Zero Transaction Fees

Meta-transactions, a key characteristic of L2 blockchains, enable MahaDAO to gift users zero transaction fees. It’s completely free to send and receive ARTH.

MahaDAO is deployed fully on the Matic Network precisely for this reason and the benefits of no transaction costs are passed onto the users. We’ve eliminated gas fees entirely and built tools so that you can confidently, securely transact on the MahaDAO ecosystem of products. Built on Matic, the MahaDAO ecosystem provides for easy 3rd party partner integrations to achieve a significant scale for dApps at a rate that is pocket-friendly and ZERO.

We’ve made it easier for you to build your financial future. No gas fees.

Light Speed Transactions

One of the major issues that Defi aimed at resolving is the slow transaction confirmation on the Blockchain. We @ MahaDAO have stepped it up a notch to make Arthcoin transactions super fast.

The average time taken to transact ARTH is less than 3 seconds. And our ultimate goal is to provide transaction speed rates that are among the lowest in the industry.

Easy to understand UX

As we’ve seen, Defi and other non-Defi crypto projects tend to sacrifice user experience in exchange for implementing ground-breaking concepts with a general intention to transform rather than to please.

With ARTH, MahaDAO ensures not just a disruptive system is at play but also frictionless onboarding of users. The products built by the MahaDAO community will always have a common denominator, a simple yet effective approach to creating seamless user experiences.

A new way to transact

With the features outlined above, ARTH has been created as not just a store of value but also a transactive currency; the ability to transact at lightning-fast speeds anytime, anywhere, and with 0 transaction fees.

These features make ARTH a valuable transaction coin. Almost anybody, anywhere in the world can transact ARTH in seconds using just a smartphone.

For the community, by the community

DAOs and Defi are still early and in the experimental phase. The transformative potential of these concepts means that projects are not really in competition with one another but more so trying to differentiate their use case within the industry. One key aspect of this differentiation has and always will be the community behind a project. Maker, for example, is what it is today, because of its community & not the other way around.

The MAHA community plays a pivotal if not, the most important part in the MAHA ecosystem. The community’s power to equivocally make decisions in the best interest of the project is something that can never be compromised. Cooperation is integral to the success of this project and MahaDAO will offer a range of incentive structures to create a vibrant and engaging community.

By doing so, Maha represents a commitment to community-led and self-governing infrastructure, whilst upholding the core tenets of autonomy and self-sustainability.

Token allocation: Curved Distribution Model for community

MahaDAO shares community ownership through a dynamic, dedicated governance system, in place, to steer the project over a long-term horizon. Built on the principles of impartiality and trust, it is crucial that governance is managed in line with the necessary input requirements. This being said, the MAHA governance framework is aimed at developing the protocol and maintaining its safety, with a view to expanding the MAHA universe.

A range of incentives has been drafted to ensure that the community is rewarded for being part of the MahaDAO journey.

Liquidity Mining

At the heart of every Defi project is a way for users to earn rewards by deploying their crypto assets using creative strategies. That is what Defi is all about; building innovative ecosystems that allow users’ to take control of their wealth & expand it. This is the essence of everything we do. Growth in value!

The MahaDAO Liquidity Mining Program is an incentivized, community-focused approach to market making which will reward those providing liquidity with MAHA tokens.

The MAHA tokens are farmed over a period of 5 years by those providing liquidity to create ARTH. Mining rewards will happen on a weekly basis and as a miner you also earn interest on your ARTH tokens by staking ARTH, thereby earning interest from the Arth Savings Rate.

MahaDAO’s Liquidity Farming program follows an exponential distribution model of MAHA rewards. Early liquidity miners reap the most rewards. Hence, the sooner you become a part of the program, the more rewards you can reap!

Stay tuned for our complete guide on how to become a liquidity miner and earn, to be released in due course.

Governance Portal

The MAHA governance portal is the place where all major decisions about the protocol will be taken. MAHA is the governance token that community members can use to vote on many different aspects of the ecosystem and ensure its decentralization.

The MAHA token holders have a ton of responsibilities, apart from ensuring the value stability of ARTH. MahaDAO itself is guided by the MAHA token holders, who vote and determine the various activities and updates within the ARTH ecosystem.

How can you be a part of MahaDAO?

MahaDAO is always looking for community members that will help the project grow and reach its full potential. We are currently at a very nascent but exciting stage in our project development. By being a part of this ecosystem at an early stage, you can be one of the pioneers, driving the disruptive and game-changing solution that is ARTH.

You can be a part of MahaDAO in one way or another, listed below:

  • Community member
  • Advocate/Ambassador
  • Community Manager
  • Influencer
  • Liquidity Miner
  • MAHA token holder
  • Early investor

If you don’t fall in any of these categories but still interested in knowing more about the project:

Join our Telegram: https://t.me/MahaDao

Join Discord: https://discord.gg/a9KsJD

Follow us on Twitter: https://twitter.com/TheMahaDAO

If nothing, you can join as a skeptic who wishes to ask pivotal questions around the project, which we would be more than happy to answer.

Each and every person is welcome to join our community🙏

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