Unlike the other single- token economy models, WaykiChain has recently grabbed the attention of the decentralized techno enthusiasts by unveiling its world’s first-ever Three-Token Economy Model.
WaykiChain was curated as a third-generation public blockchain network, which allows developers to create and nurture their dApps on its reputed platform. Based on DPoS consensus algorithms, the solution is quite popular amongst the masses because of the user-friendly interface and an array of lucrative templates offered by it for the developers.
As per the latest piece of information, the three-token economy model of WaykiChain incorporates WICC token, stablecoin WUSD, and the governance coin WGRT. Interestingly, WUSD is the only stablecoin supported by the bottom layer technology of the public blockchain in the global arena. Its emergence is likely to work as a booster for the accomplishment of the digital coin’s widescale application exterior to the circle.
The mutual operation and balancing of the three varied tokens are likely to aid the stablecoin network in a large way by fostering better risk management, operability, and development capabilities.
The Undeniable Relationship Between The Three Tokens
Firstly, we should learn the relationship between the two prominent tokens- WICC and WUSD. The amount of WICC locked by the stablecoin network will eventually upsurge when the stablecoin mechanisms run efficiently. However, the WICC cannot be locked perpetually, and a substantial portion of the tokens cannot be locked in CDP. To enhance the capabilities of the network, the system boasts of a concept named the Debt Ceiling. This mechanism is designed to get away with the occurrence of an unfavorable situation described further.
Suppose, if there is an excessive amount of WICC locked in the system and the market touches the extreme point, then there will be a huge amount of WICC available for sale. This will also lead to the crumbling of the stablecoin ecosystem. An extreme situation accounts for a dramatic drop in the WICC’s price during a short span of time and an increase in the number of CDPs required to be liquidated in the system.
Concerning the relationship between WUSD and WGRT, the stability fee, and the penalty expenses when experience a surge in their values, WGRT attains a bullish trend. The advantages lie in sync with the circulation rate of WUSD, which implies that a wider circulation scale ensures more benefits. CDP is the deciding factor which prescribes the stable fee and penalty proportion in accordance with specific conditions to WGRT market volatility and the pledger. In case CDP performs well and so will not be liquidated leading to high stable fee. More liquidated CDPs point towards higher penalties.
Lastly, it is the price trend of WGRT that is related to WICC. A bullish market along with a positive WICC trend indicates a substantial number of holders using the network for leverage purposes. More pledged WICC leads to its rise, while an increase in WGRT ensures that the scale of WUSD is also at a high.