After the chainless project was launched for testing, the method of airdropping tokens was adopted. Since the promotion tokens can be traded over the counter, the price has risen more than 20 times in 8 months. Recently, there has been a 60% callback. In order to activate the community and increase the price of the coin, active group members have made suggestions:
1. Adopt the common method of staking tokens to generate interest
2. Adopt the method of sending tokens by clicking on them every day
Thank you for your kindness. The following explains why we do not adopt the above methods.
Why does the common method of using staking tokens to generate interest not work?
There are many projects that use the method of staking to generate interest. This method is not unusable. The key is that a source of income must cover the interest of the tokens. Ethereum’s token staking is covered by transaction fee income, which is the source of interest for staking. Therefore, Ethereum’s staking interest is correct. If there is no source of income, the additional tokens will dilute the value of the original tokens. The losses of non-participating mortgagors are used to subsidize the income of mortgagors. Ethereum holders who do not participate in staking earn no profit but do not cause losses to non-staking holders. If Chainless adopts staking to generate interest, there is no source of income, which causes losses to non-staking holders. In this way, staking and non-staking are just choices between two options. Those who do not participate in staking are likely to sell and fail to achieve the purpose of locking positions. Chainless has no source of interest, so it is not suitable for this method.
The source of interest should be carefully studied. Luna earns interest by pledging UST stablecoins and repays the interest with appreciation for the project’s equity token, Luna. It seems that there is also a source. Its financial logic is the internal cycle of UST and Luna, and the income does not come from the outside. When Luna decided to reduce the interest on the mortgaged coin, the internal cycle was broken immediately, the market sell-off appeared, and the avalanche-like decline destroyed the project.
To expand a little, the United States issued new treasury bonds to pay the interest on old treasury bonds. That is borrowing new to repay old, and it cannot be counted as a source of income. This action has a well-known name, the Ponzi Scheme. If it is not endorsed by the state and state power, it cannot be maintained, and it will be the same as Luna. The dollar has already shown the signs of a Ponzi scheme. If the fiat currency is not reformed, the bubble will only grow bigger and bigger, and the consequences will be unimaginable.
About the method of sending tokens by clicking daily
There must be a source of funds for sending tokens by clicking daily. The project PI sends tokens by clicking every day. There are game ads after clicking, but the advertising revenue is not used to pay for the token distribution of daily clicks. The cost of PI to maintain daily activity is very high. Ultimately, it must be higher than the average financial value of each person. It does not need to be listed on the exchange; the team can live well on advertising fees while the clickers get nothing. He also uses future money to subsidize click activities, which has the characteristics of a Ponzi scheme.
Chainless does not use daily click activity because daily activity is not an indicator of a financial project. That is an assessment indicator for social software, so chainless projects do not examine daily activity, only the real person rate. Because each account has airdrops, real people will use it. We have not seen banks assessing daily activity. This type of software is a tool software and is used when needed.
Daily activity can be assessed for Chainless’s supporting community software, Simitalk. Simitalk is still in the development and iteration stage, and there is no need to assess daily activity. Currently, Chainless directs traffic to Simitalk. When Simitalk can direct traffic to Chainless, Chainless can give Simitalk tokens, and Simitalk is used to reward daily activities.
Cryptocurrency is essentially a financial project
Cryptocurrency is a financial project, and it must first follow financial laws. Cryptocurrency projects with faulty financial logic will eventually fail.
