0
Gemini home
Gemini home

What is ice dao and why does it exist?

Gemini home

IceDAO is a community-driven DAO that uses staking and bonding to introduce novel economic and game-theoretic dynamics into the market. These two mechanisms are critical for developing a sustainable reserve currency while optimising short and long-term wealth creation for token holders.

Their community is backed by a basket of assets such as Magic Internet Money ($MIM) in their treasury, providing it with an intrinsic value that cannot depreciate.

Their goal is to create a policy-controlled currency system in which the DAO has a high level of control over the token's behaviour. In the long run, this system optimises stability and consistency, allowing it to function as a global unit of account and medium of exchange currency. It intends to optimise the system for growth and wealth creation in the short term.

Gemini home

How to participate in IceDAO

Market participants can choose between two strategies: staking and bonding. Stakers lend their tokens in exchange for more tokens, whereas bonders exchange Liquidity Pool (LP) tokens for discounted ICE tokens after a set vesting period.

Governance participants can collaborate in discussions on our forum and community and DAO discord servers, respectively.

How to benefit from IceDAO

The main advantage for stakers is increased supply. The protocol creates new tokens from the treasury, with many of them distributed to stakers. Thus, the gain for investors will come from their auto-compounding balances, though price exposure is still a factor. Stakers would profit if the increase in token balance outpaced the potential drop in price (due to inflation).

The main advantage for bondholders is price consistency. Bonders commit capital up front and are promised a fixed return at a specific time; that return is in ICE, so the bonder's profit is determined by the price when the bond matures. Bondholders profit from rising or stable prices. Selling also affects the price of the currency, thereby affecting bond income.

Gemini home
Author: Emmanuel Baiden

Author: Emmanuel Baiden

7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.

Share

This site uses cookies, please see ourCookie Policyfor more information.