1./ As you all know I love good tokenomics. Let's have a look at @Minerva_NFT. What is it? Why does their token hold value? Does it have potential?
Let's go! A thread π§΅
Let's go! A thread π§΅
2./ @Minerva_NFT is a DAO which will bring appreciating wine investments to users directly on the Terra blockchain.
This means you can invest in wine by using the blockchain. Those investments are minted as ADOs, an improved version of NFTs made by @AndromedaProt
This means you can invest in wine by using the blockchain. Those investments are minted as ADOs, an improved version of NFTs made by @AndromedaProt
3./ Although @Minerva_NFT is initially a platform for investing in wine, they are already looking to expand to more real-world-assets. Looking at this tweet things like watches, whiskey, trading cards and fashion are also things they're looking at.
https://twitter.com/minerva_nft/status/1467496451517337605?s=21
4./ So why is this a thing? Why would you want to do this?
Investing in the things mentioned is very illiquid in the traditional investment world. What if you could use your investment as collateral?
Investing in the things mentioned is very illiquid in the traditional investment world. What if you could use your investment as collateral?
5./ Now you not only have an appreciating asset, but you can also take out a loan. A self repaying loan? Who knows. One thing is for sure, by making those investments available on the blockchain as ADOs a lot of new possibilities are unlocked.
6./ So now we know the basics of @Minerva_NFT, how about their token? The token of @Minerva_NFT is the $TORCH token.
The $TORCH token as taken its inspiration from protocols like @OlympusDAO and @MIM_Spell which sounds very promising.
The $TORCH token as taken its inspiration from protocols like @OlympusDAO and @MIM_Spell which sounds very promising.
7./ The tokenβs main goal is to effectively capture a portion of the value of all ADOs are being minted and
sold. Hence, the market capitalisation of $TORCH should rise in tandem with ADO sales.
This is being done in the following way:
sold. Hence, the market capitalisation of $TORCH should rise in tandem with ADO sales.
This is being done in the following way:
8./ 10% of every newly minted ADO sale is sent to a separate vault, which then provides the backing for every new $TORCH issued into holders. This inherently creates a floor price for the token,
as redemptions can occur when $TORCH is trading below its backed value.
as redemptions can occur when $TORCH is trading below its backed value.
9./ That 10% is then deployed into various yield farming strategies present in and outside of the
Terra ecosystem, which increases the backing per $TORCH. Therefore, it is likely that $TORCH
would trade at a premium to the underlying backing
Terra ecosystem, which increases the backing per $TORCH. Therefore, it is likely that $TORCH
would trade at a premium to the underlying backing
10./ By doing this, @Minerva_NFT now has its protocol owned liquidity and is not dependant on the issuance of tokens to incentivise liquidity providers.
11./ If you agree with me that making appreciating investments available on the blockchain has massive potential, you definitely want to have a bag of $TORCH tokens.
Note: Tokens are not live yet!
Note: Tokens are not live yet!
12./ I'm very excited for @Minerva_NFT. In my opinion, this is a new market to be deployed on the blockchain and has huge potential. Next to this, the tokenomics are great. I'll definitely buy a bag of $TORCH when this is possible.
13./ You want to learn more about @Minerva_NFT? I'll post more about them soon, but in the meantime I recommend everyone to follow their twitter account and to join their discord:
discord.gg/GfnNjhwB
You have questions? Post them below and I'll try to dive into it soon.
discord.gg/GfnNjhwB
You have questions? Post them below and I'll try to dive into it soon.
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