23. What is a stable fund?

Answer: In order to solve the vulnerability problem in the first stage of the growth of DW20 tokens, we issued 10% as a stable fund to form a market-making fund.Stable funds are not aimed at making profits but at stabilizing currency prices. Therefore, although the market maker is hired externally, it does not own the stable fund. The majority of currency holders own the stable fund. We will agree through a contract that the market maker will make the market according to our conditions. Market-making funds and operations aim to enable DW20 to grow steadily and gradually and complete the transition to a stablecoin.

In the first stage, the number of stable funds is 10% of the total amount of foundation funds, which is 21 billion DW20 coins. Initially, the stable funds have no money, only coins, and no independent operators. After the funds need to be invested in equal proportions, a new market-making fund will be formed, and other teams will manage the market-making fund and make the market.

The second stage: Existing external funds will gradually withdraw from the market-making fund, and there is no need for external funds to join the market-making fund. The market-making fund will become a guaranteed fund. The fund maintains a “50%:50%” proportional relationship between DW20 and U.S. dollars or U.S. dollar stablecoins.

The third stage: The sign of the third stage is that the fluctuation of DW20 is smaller than that of the U.S. dollar, and there is no depreciation in the price comparison of commodities. At this time, the market naturally uses DW20 as the anchor. The original “50%:50%” proportional relationship between DW20 and the U.S. dollar in the hands of funds began to change. DW20 still accounts for 50%, and the other 50% corresponds to USD and BTC. The final fund maintains the proportional relationship between DW20 and Bitcoin of “50%:50%”. At this time, the DW20 standard currency is established.

Scroll to Top