Leveraging the Power of the DAO for Token Adoption and Double-Functioning Incentives
The concept of the DAO (Decentralized Autonomous Organization) within the InternetMoney ecosystem goes beyond its role in decentralized governance. It also holds the potential to address a crucial consideration for token holders, particularly when it comes to providing liquidity between $Time and other tokens on decentralized exchanges (DEXs).
When users provide liquidity between $Time and another token on a DEX, it effectively removes $Time from the market. While this liquidity provision contributes to the overall ecosystem’s stability and liquidity depth, it also means that the $Time tokens used for liquidity are no longer available for other purposes within the PulseChain network.
This scenario poses an interesting question:
What happens to the dividends in $PLS that normal $Time holders would typically receive when their tokens are locked up in liquidity pools? I raised this idea and was addressed by KG, the founder of InternetMoney, during a conversation involving the possibility of working with 9inch.io, a soon-to-be notable dex in the DeFi space.
Just listened to @KG and @HexyBastard talk about 9-inch and I'm thinking about what happens to $time ‘s ability to create passive $pls when it’s in liquidity? I mean technically it’s not gone. But it’s no longer in the wallet. That ability stops yeah? Does it then go to the #dex pic.twitter.com/xW4MRH31Z9— PulsePerza (@perzamedia) June 10, 2023
I mentioned to KG the potential for implementing a double-functioning incentive reward system. This innovative approach would aim to provide rewards and incentives not only for traditional $Time holders but also for those who contribute liquidity to DEXs through token pairings with $Time. By collaborating with platforms like 9inch.io, InternetMoney could introduce mechanisms that allow liquidity providers to earn additional rewards or claim dividends in $PLS, even while their $Time tokens are locked in liquidity pools.
Maybe we can partner up with @9inch_io to make it possible!— KG🟡 (@BrotherKDG) June 10, 2023
Implementing such a system would ensure that participants who provide liquidity and support the liquidity depth of the PulseChain ecosystem are not left out of the dividend rewards typically enjoyed by $Time holders. It would create a more inclusive and attractive proposition for liquidity providers, potentially encouraging greater participation and long-term commitment to the ecosystem.
By utilizing the power of the DAO, InternetMoney can empower community members to actively participate in decision-making processes related to liquidity pool management, incentives, and the implementation of the double-functioning reward system. The DAO’s decentralized governance structure ensures that the collective voice of the community shapes the future developments and enhancements of the PulseChain ecosystem.
That could be coool! Maybe make it a double functioning incentive? The #bbctoken and $pls but just an the farm.— PulsePerza (@perzamedia) June 10, 2023
I know I’d be more inclined to provide the liquidity if it didn’t take away that aspect of $time
As this concept evolves and potential partnerships with platforms like 9inch.io materialize, the InternetMoney community and liquidity providers have an opportunity to contribute to the creation of a more robust and rewarding ecosystem. The double-functioning incentive reward system demonstrates the commitment to innovation and inclusivity within the PulseChain network.
In summary, 9inch.io could be huge for the InternetMoney’s ecosystem because participants have a truly decentralized say. Expanding on this, the potential integration of a double-functioning incentive reward system, in collaboration with platforms like 9inch.io, addresses the concern of liquidity providers missing out on $PLS dividends when their $Time tokens are locked in liquidity pools. This kind of innovative approach could create a more inclusive and rewarding environment, fostering long-term engagement and growth within the PulseChain ecosystem.