A salient problem behind the volatility in the Defi space seems to stem from the purely inflationary token models that many De-Fi protocols operate on, which not only leads to eventual devaluation of the token itself but also erodes the wealth of long term token holders.
$HAKA: A Deflationary Token
TribeOne’s $HAKA is a deflationary token, designed with mechanisms in place that ensure its supply reduces over time whereas demand increases with increased protocol usage — thus leading to a gradual increase in the token’s valuation itself.
HOW DOES $HAKA ACHIEVE THIS?
When an investor stakes on our platform, $HAKA’s circulating supply is locked up within our ecosystem — this is one way we ensure demand exceeds supply.
This staked capital in $HAKA is then collateralized to issue loans to borrowers on TribeOne’s platform to finance a range of unique NFTs, making them the ‘custodian’ of the NFT purchased till their loan is repaid (similar to a mortgage!).
Let’s say the price of this particular NFT gradually increases after the above transaction is made — this rise in the value of the NFT will not only lead to the user making an instant profit but also lead us into another strategy used to further enhance the deflationary properties of $HAKA.
How?
In a uniquely interesting feature of our platform, the custodian can opt to pay a minimal fixed platform fee and immediately liquidate his NFT — 80% of the proceeds from the sale of this NFT belong to the custodian, and 20% is used by the TribeOne platform to buy back and burn $HAKA.
The burning of this platform fee is another mechanism that conduces a deflationary effect by reducing the circulating supply of $HAKA.
These combined events will induce scarcity of $HAKA, thus creating a supply shortage and potentially boosting our native token’s valuation in the long run
Conclusion
Tokenomic models are an integral part of any crypto protocol’s upward mobility — by ensuring that ours is one that shifts $HAKA’s demand-supply metrics to a favourable standard, we will ensure that TribeOne is not only a successful protocol but also a sustainable one.
About TribeOne
TribeOne is the world’s first AI-powered decentralized financial platform backed with RAROC (Risk-Adjusted Returns On Crypto) technology. TribeOne is an NFT, lending, borrowing, saving, and credit risk platform that offers a seamless experience; to all the users through its innovative consumer-centric products. The platform will break barriers in the traditional financial ecosystem and revolutionize the DeFi sphere as a whole. Providing the community with a platform to lend, borrow and invest in crypto assets and NFTs. Therefore, offering an unconventional experience for all.
