A Brave New Model
Nodes and Their Future with Zeus Finance
Something new, something fresh has arrived on Mt. Olympus. Zeus Finance is introducing a brand new model for nodes and how they emit rewards, something that has never been seen on the Avalanche Network, or on the blockchain in general.
A brave new model is on the horizon.
The model began with a 30% reward cut on November 3rd, 2022; the first reward cut since the inception of the protocol. Now, keep in mind, it has been openly identified by the team that the previous node model was unsustainable to accomplish their objective of providing a sustainable passive income to their investors. It’s been obvious to anyone with some conscious awareness and ears to hear that as long as nodes emit a native token as a reward, node owners need to sell the tokens in order to profit. The result is a constant decrease of, in this case, the $ZEUS token price; selling pressure eventually outweighs any buying pressure.
Immediate profits and high APR returns are unrealistic and unsustainable short term. Many projects have sold this impractical idea in order to receive large initial funding and build up hype without having any long term plans to maintain the value of their protocol or native token. This is unsustainable and will eventually lead to the extinction of any protocol that remains utilizing this method, even if it may take a few years.
To solve this problem of unsustainability and eventual demise, Zeus Finance is moving to a sustainable, healthy, and realistic model for nodes.
The protocol will transition their nodes into their revenue sharing model, where the nodes will emit $USDC instead of $ZEUS. So, let’s break this down because it provides many positives to investors and the protocol. First, it eliminates the token of continued selling pressure from node emissions. No more $ZEUS emissions. This will, inherently, create scarcity and bring value back to the $ZEUS token. When people buy $ZEUS, the value will no longer be masked by sell-offs from $ZEUS rewards obtained through nodes. Second, once the transition into the new model has been completed, node fees and claim tax will be a thing of the past. Third, Zeus Finance can keep creating revenue sources to increase emissions while providing more utility for the $ZEUS token. All early investors will see their initial investments increase in value within our ecosystem.
In order to transition from one phase to the next, an increase of revenue is needed. This prevents reducing $USDC rewards while allowing for an increase in $USDC emissions through SSS and nodes from phase to phase.
Obviously, creating revenue sources is important. We can’t repeat this enough, and therefore, it is a major focus moving forward. Actually, it is the main focus moving forward. Revenue streams are necessary for the protocol, as it allows for the team to replace the node emissions from the native token, sustaining a different model.
In conclusion, it’s clear for one to see the negative impact of emitting a native token from nodes and how moving to a sustainable model is truly the only way forward without getting rid of the nodes entirely. Utility within a NaaS protocol acts as a temporary inhibitor to curb people from selling their rewards. If nothing is done to alleviate or transition out of this sell pressure, the cycle will continue no matter how much utility is created. Zeus Finance has solved this by getting rid of native token emissions from nodes, and replacing it with everyone’s favorite regulated stable-coin, $USDC.
Zeus Finance is becoming a decentralized financial suite, a protocol for investing, growing, and managing wealth; a one-stop shop. Through the services provided, revenue grows, allowing for the seemingly impossible mission to be accomplished: Zeus Finance will provide sustainable passive income to all investors, ascending wealth.