CALM AS AN EMERGING “GOLD STANDARD” FOR NFT CREATORS.
CalmDAO is a decentralized reserve currency protocol for NFT transactions on Polygon. The key-point about it is ensuring CALM, its transactional currency, does not fall below an intrinsic value by leveraging OHM’s tokenomics and other available sources of revenue. In the long run, it wants to become the most stable rebase token in DeFI 2.0 with a special focus on NFT transactions.
The Driving Force
The design team and executive body believe that tokenomics should be simple and straightforward. CalmDAO will create a free-floating reserve currency, CALM, that is backed by a stockpile of assets.
Other than generating revenue from letting users mint CALM, investing a portion of treasury balance to yield aggregators, earning liquidity provider fees from the pools, CALMDAO will give NFT artists the opportunity to wholesale CALM tokens by buying them at the minting price if they buy more than 100 of them.
With each purchase, hodlers of CALMDAO tokens are entitled to receive compensatory rewards when selling their NFTs. Buyers will also receive CALM tokens and stake them on its website which avails boundless access to resourceful opportunities beyond conventional ideals.
CalmDAO’s Perks
NFT buyers will be able to purchase NFTs with a discount if they buy them with CALM. Buying with CALM is an added advantage for upcoming and veteran digital creators. For example, if the price of an NFT is 1 ETH, the current price of ETH is $3,000, and the current price of CALM is $100, they can buy it with 26 CALMs, instead of 30 CALMs. NFT artists will receive CALM tokens as a reward for selling NFTs and stake them on our website.
As emphasized by the lead designer, CALMDAO is for long-term growth, with a focus on profit generation to as many investors and early adopters as possible.
Competitors like OlympusDAO have opened a new era of rebase tokens in DeFi 2.0, but too many OHM forks have failed (or even ignored) to properly leverage OHM’s tokenomics. They were just interested in providing unreasonably high APY to attract investment as much as possible for the short term, the team got to profit off of it, the price of the token plunged, and many investors ended up losing their money. But this would not be the case for the adopters of CALMDAO. But why is that so?
This is primarily because CALMDAO is user centric and future oriented, building a viable system that serves as an added advantage to everyone willing to place their bets on their forthcoming successive outcomes. Their emphasis on upholding a strong business reputation within the DEFi network guarantees the project’s longevity.
CALMDAO is set to provide a 3-digit or 4-digit APY as long as possible to minimize the volatility of the rebase token. The success of the rebase token and its DAO will depend on how well the protocol increases its treasury balance.
The reasonable APY CALMDAO provides to the users will help to increase the project’s treasury balance. Since there is less pressure to give staking rewards to stakers when the protocol makes profits by letting users mint CALM as they will appropriately. There is no reason to be worried, given the fact that CALMDAO is not taking anything away from the users by having lower APY than other OHM forks. Furthermore, CALMDAO’s keen insightful team found a strategic balance to give enough staking rewards to stakers and increase treasury balance as fast as possible. This is absolutely remarkable based on the comparable advantage CALMDAO has over other emerging projects.
An increase in treasury balance has wholesome benefits which includes;
- Incremental Profitability:
Everyone who invests some portion is sure to make additional profit. For the first few months, CALMDAO plans to plug the project into yield aggregators to gain profits with minimized risk.
2. Diversification Of Access:
There are strategic embeds to support more cushion if the protocol has to buy back CALM, moreover, the chances of a decline in sales is rare to happen.
3. Increase Portfolio Accessibility:
The project is set to attract more smart investors who know the importance of the treasury balance. This can lead to an increase in the token price. It is important to note that at the end of the day, it is about the price of the token, not about APY.
CALMDAO’s Growth Strategy
Launching CalmDAO will just be the beginning. While the project will be able to achieve steady growth just with the launch itself, the exponential growth will happen once CALMDAO starts partnering with NFT marketplaces and NFT artists. The project expects a huge demand once NFT artists and buyers, who are relatively new to DeFi 2.0, get rewarded with CALM tokens and enjoy the staking benefits.
Major NFT marketplaces like OpenSea and LooksRare support Ethereum and Polygon, CALMDAO plans to launch in Polygon and implement wrapping soon after launch so that wrapped CALM can be traded in Ethereum as well.
How Does CALMDAO Work?
At a high level, CalmDAO consists of its protocol managed treasury, protocol owned liquidity, minting mechanism, and partnership with NFT marketplaces and artists.
Protocol managed treasury is used to generate revenue by investing or staking a portion of it. While protocol owned liquidity is used to generate revenue by collecting liquidity provider fees as due for the project profitable continuation.
CALMDAO’s minting mechanisms will create revenue by selling CALM at a minting price.
And most importantly, CalmDAO will partner with NFT marketplaces and artists to let them use CALM for NFT transactions. This will create a huge demand for CALM and as such, increasing its price.
One vital point that early adopters are advised to look out for is the profitability, valuation, and Implementable growth strategies of CALMDAO’S project as provided in their official documentation. As CALM as DAO is set to become the new pacesetter in the decentralized world.
