Place/Date: - February 2nd, 2021 at 9:31 am UTC · 4 min read
Contact: Jigstack DAO, Source: Jigstack DAO
Decentralized Finance (DeFi) is now a hallmark in the crypto industry and might as well define a pivotal phase for the nascent cryptocurrency market. In fact, some stakeholders in the crypto space are now touting DeFi innovations as the ‘Future of Finance’. Today, there is over $25 billion locked in DeFi protocols ranging from decentralized exchanges (DEXes), lending platforms and derivative markets.
With the industry evolving so fast, focus is now shifting to Decentralized Autonomous Organizations (DAOs); there are currently over 91 and manage close to $430 million worth of crypto assets. This model has been gaining traction amongst fundamental DeFi projects given its value proposition in upholding a decentralized architecture.
Well, an upcoming project dubbed Jigstack DAO is about to level up the game with its conglomerate structured approach. This Ethereum-based DAO hosts a myriad of DeFi commercial tools where users can leverage the revenue generating opportunities; it also features a native token Jstack which facilitates decentralized governance functions and revenue distribution to token holders.
As more DeFi projects continue to pop up, developers are gradually losing the core aspect of decentralization. Instead, it is now an opportunity cost that DeFi projects evaluate and in most cases end up launching a centralized innovation to cash in on the quick market gains.
The Jigstack DAO is amongst a handful of Ethereum-built projects that have stuck to a fully decentralized model. Some of the advantages that users can derive from this conglomerate structured DAO include multiple revenue streams, quality standardization and reduced risks.
Basically, this DAO is designed as an umbrella that hosts several DeFi and DApp focused solutions with an aim to increase the earning potential of its users. The Jigstack DAO seeks to institutionalize DeFi by creating an ecosystem that will drive participation and adoption beyond the current testbed.
While DeFi has been particularly successful, the market structure is still heavily reliant on capital dilution or equity as the on-ramping avenues. This limitation is a major barrier, especially if combined with the complex nature of DeFi applications.
Jigstack DAO introduces an alternative and simple way to generate additional DeFi revenue through its automated MLM sales and marketing reward tool, Ethlink. This is a decentralized affiliate link that allows network promoters to increase their earnings by sharing out the link to potential prospects.
Ethlink bases its fundamentals on the Ethereum blockchain and is compatible with wallets built on this network. The DeFi gateway enables anyone to start a campaign within a few clicks, after which personal affiliate links connected to their wallets are generated.
Ideally, promoters and early adopters earn commission based on the number of people that engage their shared links and eventually buy the underlying product. Every entity is given their own unique code once they start or join an ongoing campaign.
Apart from Ethlink, Jigstack also features a DAO modelled token launchpad known as Lemonade. DeFi projects can launch crowd token sales on this platform at cheaper rates compared to other launchpads. Furthermore, they get access to advanced functionalities such as the option to automate token lock sequence, adjust vesting periods and manage the token distribution.
Like most DeFi projects, the Jigstack DAO native token ‘Jstak’ acts as the incentive tool for pooling participants to further decentralize its governance. Jstak token holders are eligible for rewards for holding it; these proceeds are derived from a 1% network fee on all Jigstack transactions. Given that the charges are applied on every transaction, the dividend income potential for holding Jstak tokens is significantly high for early adopters.
Decentralization is not only fundamental, but the building pillar of permissionless crypto ecosystems. That said, it is a no-brainer that DeFi projects ought to embed this building block within their base architecture. The Jigstack DAO is an example of how innovations in this niche can set pace for a trustless and transparent financial ecosystem. With such DeFi ecosystems, the market is more likely to attract mainstream users in the coming years.