DeFi

Introducing MahaChain, The DAO-Powered Blockchain by MahaDAO

MahaDAO, a decentralized autonomous organization, recently announced the launch of MahaChain, a revolutionary blockchain with built-in robust economic policies powered by smart contracts.

Bearing a resemblance with policies issued by a Central Bank, MahaChain implements different economic policies, such as quantitative easing, buybacks, interest rates to promote and boost the growth of dApps within the MahaChain ecosystem in a decentralized environment.

MahaDAO is a name synonymous with decentralization that takes a community-centered approach to pave the way for a new and better financial world with a fair, non-concentrated reserve of wealth. The launch of MahaChain will further the vision of MahaDAO and create a scalable, secure, and decentralized blockchain network.

MahaChain – The DAO-Powered Blockchain with built-in Economic Policies

The MahaChain is set for launch in the first quarter of 2022, with the testnet launch set in January 2021. Moreover, the economic policies will be coded into MahaChain in early 2022 in a whitepaper written jointly by Steven Enamakel (MahaDAO Creator) and Suhas Kulkarni (Economist). The introduction of economic policies will help MahaDAO effectively create and govern a fully decentralized economy.

MahaChain is an EVM-fork that uses a Proof-of-Stake consensus algorithm initially conceptualized by the POSDAO. Moreover, the blockchain will initially support 100 validator nodes elected through a decentralized voting mechanism involving the $MAHA token holders. With this dual-token design, the role of $MAHA will increase further as a Proof-of-Stake token used to govern and secure $ARTH.

Following the launch of MahaChain, MahaDAO will open its gate to the world of DeFi, NFTm Gaming, and dApp builders. Users can now deploy their dApps on MahaChain and receive MAHA tokens as economic rewards. However, the primary focus of the blockchain remains on the high inflation countries like Venezuela, Argentina, Turkey, etc. Residents of these countries can interact with an inflation-proof stable currency and simultaneously invest and interact with projects built on MahaChain.

MahaChain is unique and takes a different approach than other layer-1 EVM chains in the industry. It will support interoperability on the day zero itself with several bridgers to help users interact with dApps and tap onto the liquidity on the other blockchains such as Ethereum, Polygon, BSC Chain, from MahaChain.

About MahaDAO

MahaDAO is a community-powered DAO that aims to empower the world by preserving its purchasing power using ARTH, the world’s first Valuecoin. $ARTH tackles US Dollar inflation and is resistant to the financial crisis and low volatility.

Another token, the $MAHA token, plays a crucial role in the ecosystem as it is the governance token for ARTH valuecoin. It makes sure that the system remains decentralized and free from manipulation by any single entity. To learn more about MahaDAO, visit https://mahadao.com/.

Social Links 

Website | App | Telegram Chat | TG ANN | Twitter | Discord | Reddit | Github

Contacts

Creator

  • Steven Enamakel
  • MahaDao
  • Info@mahadao.com

BiLira will now be featured on BTSE spot listing exchange

The crypto stablecoin from the land of Turkey, BiLira has witnessed some good news. BTSE the much demanded over-the-counter Bitcoin and Altcoin futures exchange extended their support for BiLira’s Turkish stable coin called TYRB. With the new development, TRYB can be traded against Tether on the spot markets at the exchange.

Turkey is yet to realize the potential of the cryptocurrency wave and it can be safely said that it is at the nascent stage. The CEO of BTSE has stated that this alliance will go a long way in the upliftment of the trade and raising awareness among people. The new partnership will help users to experience instant settlement along with the convenience of lower fees through remittances.

The entry into the Turkish market took place early this year and ever since it has managed to grow the community further. Ever since there has also been an increased demand for onboarding options through the stable coin. It also coins 19 among the pairings which BTSE does.

The chief officer at BiLira is also hopeful about the outcome of this step. Apart from being a leading center for the blockchain industry in the world map, it will also encourage more and the learning curve can be sharper. Not that cryptos are any new to the Turkish traders because earlier on it was used as an asset to hedge risk. The mobile penetration here is a good 90% which means that a considerable proportion of the population is well-versed with mobile banking and other apps.

Turkey has a strong trading history but the aim of the coin is not to create any speculation. The crypto enterprise is looking at serious ownerships and wants to create a platform that has some genuine takers and use. The system so set will allow people to buy up to 100,00 euros per month without paying even one lira as commission. The no-commission prospect may harm the company but it is a great option for long term prospects. It is an excellent proposition for the migrants who can now send money back home with just a click on their device!

Image Source – Wibestbroker

India Likely Launch Destination for Facebook’s Secret Crypto Project

Facebook’s Cryptocurrency project dubbed Project Libra has been making Cryptocurrency headlines for the last few months. According to a majority of information, the most visible detail is Facebook’s Cryptocurrency being a stablecoin.

A stablecoin is defined as a cryptocurrency which minimizes the high volatility of cryptocurrencies by being pegged to a fiat currency or an exchange-traded commodity like gold.

The latest details emerging from Facebook insiders have highlighted that India could be the region where the new Cryptocurrency will first be tested.

India currently is facing a confusing Cryptocurrency ban which according to Ajeet Khurana of Zebpay is not really the case. However let’s not forget that India’s growing population, along with high remittances makes it the ideal country to kickstart the Cryptocurrency for testing.

Why India?

India being the second most populous country in the world after China has 1.366 Billion currently living in the country. The median age is 27 years old showcasing that social media such as Facebook and Whatsapp is highly used in the Asian country. The stablecoin could be used to transfer money through the push of a button through WhatsApp, which will be beneficial to the many Indians living abroad sending funds back to their families back home.

India was noted for being the top recipience of remittances with USD 79 billion recorded being sent back home in 2018 according to the World Bank.

Potential of Facebook’s Stable Coin

In India, alone Facebook’s stable coin could create mass adoption of Cryptocurrency. Anthony Pompliano who is actively engaged on Crypto twitter pointed out in December 2018 about India being a big market for Facebook’s stablecoin.

Reversal of Facebook’s Crypto Advertisement Policy

The social media giant has reversed the advertisement policy of a written approval involving Blockchain and Cryptocurrency products and services. However, it still restricts initial coin offerings (ICOs) due to the big scams in the industry. While Cryptocurrency exchanges and mining products and services need to be reviewed beforehand.

These reversals come in at a time when Facebook’s stablecoin project is trending due to financial players such as Visa and Mastercard planning to fund the project.

What makes Facebook’s stable coin even more impressive is the fact that most of the team consists of ex Paypal employees such as the former president of Paypal David Marcus.

Could Paypal’s last few months as the leading Payment processing company come to an end? Let’s wait and see!

GMO Confirms Yen Backed Stablecoin GYEN

GMO Internet has finally confirmed the launch of the Yen Backed stable coin called GYEN.

GMO released information regarding the confirmation of GYEN through an earnings presentation to investors for the fiscal year ending December 31, 2018.

The attendees asked questions about several of GMO’s cryptocurrency business. What struck out was the answer given when asked about GYEN, the stablecoin to which one of the executives of GMO answered, “Regarding the plan to launch GYEN as announced last year, we plan to issue it overseas this year.”

The executive further briefed on GYEN’s operations such as a subsidiary setup and a lead being appointed to run GYEN’s operations.

GMO’s Crypto businesses

GMO clarified several details regarding their crypto mining businesses. One such information revealed was the shutting down of its Northern European mining site and the relocation of it by the end of 2019. Location of the new mine is not known, but hints about local electricity costs being less than half of Northern Europe was mentioned.

Overall GMO’s earnings report indicate 2.3 billion Japanese Yen which is approximately equal to US $20.8 million in revenue for the last quarter of 2018. The report’s figures analyze that earnings were the best in Q2, followed by Q4 and the worst reported to being Q3 of 2018.

However, the profit to owners of the parent company was far less and was in the losses of 20.7 billion Yen which is about US$ 187 million. The main reason cited for this loss was due to the cryptocurrency mining business restructuring.

GMO is not the only company that has suffered from crypto mining. Several major companies such as Bitmain faced a horrendous 2018 compared to the vast crypto mining profits of 2017.

The Rise of Stablecoins

GMO’s GYEN coin is one of the many stablecoins which are releasing this year. South Korean BaB Inc’s KRWb coin was released at the end of January 2019. KRWb coin is reported to be the first stablecoin backed by Korean Won.

Interested in Stablecoins? Want to know more? Check out Do Stablecoins Help or Harm Cryptocurrency  and Stablecoin – What are they and Can It Even Be Done?

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Interested in more crypto content? Check out How to Stay on Top of the Market – Crypto Trends and A Beginner’s Guide in Cryptocurrency Investing

Do Stablecoins Help or Harm Cryptocurrency?

Camps are divided when it comes to stablecoins.

The arguments have a similar ring to those surrounding ETFs. On one hand, ETFs promote adoption and encourage new investors. On the other, there’s a compromise in decentralization – with potential thousands or millions of people using the ETF as an investment vehicle, the ETF council suddenly has a disproportionate amount of weight to throw around when it comes to consensus making.

Things are even more complicated than that with stablecoins – let’s dive in.

Stability at What Cost? Types of Stablecoin and Their Risks

There are a few different types of stablecoins.

  • Crypto-collateralized
  • Fiat-collateralized
  • Non-collateralized

It’s a simplification, but it covers the bases. Non-collateralized coins are controlled by a “central bank” of smart contracts. Crypto enthusiasts don’t like to hear words like “central bank” when it comes to crypto too often, but this is a little different – if correctly executed, the smart contract system should control the rate of inflation indefinitely and without human input. It does this by taking selling bond tokens redeemable for the cryptocurrency at a discount rate – users buy the tokens and make a profit by redeeming them.

Sounds cool, and it is – but there’s a catch. This system heavily relies on market demand. If people trust the stablecoin, no problem. But if they lose interest, or if a news story hurts demand, or a competing currency, the bank is programmed to keep selling bond tokens. If no-one buys them, the price crashes, game over.

Crypto-collateralized tokens are a little different – MakerDAO is an example of this type of currency. The currency is backed by Ethereum in this case, and if the price starts to fall, the stablecoin system sells Eth and buys more stablecoins to prop up the price. This has its own issues – the price of Ethereum recently crashed so hard that the co-founder had to implement massive layoffs throughout the sister-project, ConsenSys. To plan for volatility, you need a lot of collateral – and even then the project relies on demand.

Pros? Decentralized
Cons? Not so stable after all

That brings us to fiat-collateralized coins.

Centralized Stablecoins

Tether is the go-to example here. These projects are centralized and rely on users exchanging, for example, $1 for 1 dollar-pegged stablecoin. The crypto-token is (allegedly) backed by $1 USD, or whatever fiat currency it’s pegged to – Tether is a good example of why this is problematic.

The project acts as a centralized intermediary between traders and crypto, holding their funds in some offshore bank account and insisting that it’s all above board.

Hmm… sounds like the exact kind of shady situation that prompted the invention of Bitcoin, no? These types of stablecoins have a lot in common with banks, and basically just offer convenience at the cost of introducing centralized intermediaries into cryptocurrency.

We’ve written about Tether before and the many scandals surrounding the rumours that the currency isn’t backed by the fiat it claims to hold. After firing their auditors and refusing to disclose bank statements or even locations, the founders could easily be embezzling investor funds and claiming that their currency is backed when it’s not.

The idea of Tether is that the project can destroy Tether tokens to control inflation and redeem them for USD when people want out. If it’s unbacked and a market panic causes too many people to withdraw at once, they won’t have enough USD to meet demand, collapsing the stablecoin and wreaking unimaginable havoc in the crypto markets, likely triggering a major crash.

This type of situation is exactly what caused the bank collapse of 2008, and arguably the birth of Bitcoin in the following year. Stablecoins are convenient, but the damage done by centralizing a movement based on decentralization simply for the sake of convenience doesn’t bear thinking about, because human greed and error will win out every time.

Crypto is our chance to correct the financial mistakes of our financial past – let’s hope that we’re not about to repeat them.