Value rewards stakeholders with compound interest, increasing their VALUE

in #values3 years ago

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DAO values are organizations to realize and implement very significant changes in the application of economic theory. This shift can be expressed in the following way: in the digital economy, the economic forces of demand versus supply are generalized to the forces of internal coordination versus price coordination . Supply and demand is only concerned with price coordination, while entrepreneurship/self-organization (which is outside of neo-classical price theory) is concerned with internal coordination. The internal coordination theory framework is able to explain economic productivity and intrinsic value in the digital economy , as distinguished from other materials more specificeconomy. Internal coordination is still under-appreciated as a form of economic productivity, especially regarding the digital economy. Internal coordination is separate from the forces of supply and demand, and it is this that balances or regulates supply and demand. Thus, this is what motivates self-correction and natural self-regulation by market participants themselves from within the market. The market needs a human being, an entrepreneur, to recognize and solve existing coordination problems, beyond the price mechanism. This happens through the negotiation of social norms. Markets are only self-regulating and self-correcting insofar as common sense norms are negotiated and shared by day-to-day participants, through internal coordination. The dynamics of internal coordination versus price coordination was first articulated in transaction cost economics, by Ronald Coase in his essay The Nature of the Firm (1937), and later by Douglass North in Transaction Costs, Institutions, and Economic Performance (1992). Transaction costs are essentially the extra-monetary communication costs of operating in the marketplace. They include the costs of planning, deciding, and deliberation. Fundamentally, transaction costs reflect normative rules that govern themselves and regulate market activity internally.
How does it work?

At a high level, Value consists of a protocol-managed treasury, protocol-held liquidity (POL), bond mechanisms, and wagering rewards designed to control supply expansion.

The sale of bonds generates profits for the protocol, and the treasury uses those profits to print $VALUES and distribute them to stakeholders. With liquidity bonds, the protocol can accumulate its own liquidity. See the entry below on the importance of POL.
Why is PCV important?

Since the protocol controls the funds in its treasury, $VALUES can only be printed or burned by the protocol. This also guarantees that the protocol can always support 1 $VALUES with 1 DAI. You can easily determine the risk of your investment because you can rest assured that the protocol will forever buy $VALES under 1 DAI with treasury assets until there is nothing left to sell. You can't trust the FED but you can trust the code.

As the protocol accumulates more PCV, more runways are guaranteed for stakeholders. This means stakeholders can rest assured that current APY staking can be maintained for a longer period of time as more funds are available in the treasury.
What is Staking?

Staking is the main value accrual strategy of Values. Stakers stake their $VALUES on the Values website for rebase rewards. Rebase rewards come from the proceeds of bond sales, and may vary based on the amount of $VALUES wagered in the protocol and the rate of return set by monetary policy.

Staking is a passive long term strategy. An increase in your stake of $VALUES translates into a cost base that continues to fall and converges to zero. This means that even if the market price of $VALUES falls below your initial purchase price, with a sufficiently long betting period, the increase in your $VALUES bet balance will eventually outweigh the decline in price.

When you stake, you lock in $VALUES and receive the same amount of sVALUES. Your sVALUES balance is automatically rebase at the end of each epoch. sVALUES is transferable and therefore can be composed with other DeFi protocols.

When you cancel a bet, you burn sVALUES and receive the same amount of VALUES. Unstaking means the user will forfeit the upcoming rebase reward. Note that canceled prizes only apply to the amount not wagered; remaining VALUES staked (if any) will continue to receive rebase rewards.
What is a bond?

Bonding(1,1) is a secondary value accrual strategy of Value. This allows Values to obtain its own liquidity and other reserve assets such as LUSD by selling $VALUES at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the price of the bond, the number of $VALUES tokens entitled to the bonder, and vesting requirements. Binders can claim multiple rewards ($VALUES tokens) when they vest, and at the end of the vesting term, the full amount will be claimable.

Bonding is an active short term strategy. The secondary bond market price discovery mechanism makes bond discounts more or less predictable. Therefore bonding is considered a more active investment strategy that must be monitored continuously to be more profitable than staking.

Bonds allow Value to accumulate its own liquidity. We call our own liquidity POL. More POL ensures there is always locked out liquidity in our trading pool to facilitate market operations and protect token holders. Due to Values being its own market, in addition to the added certainty for $VALUES investors, the protocol derives more revenue from the LP rewards that strengthen our treasury.

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information :
Website: https://values.finance/
Twitter: https://twitter.com/ValuesDAO
Discord: https://discord.gg/xdNKGffeY2
Telegram: https://t.me/valuesDAO

Author : udincoinbawan
Bitcointalk : https://bitcointalk.org/index.php?action=profile;u=1522325;sa=summary
polygon wallet : 0x2c170dE3F1F1a785e85beD670f6c9D644CE25527

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