The problems of initial liquidity and liquidity reward program for VNTW token and Value Network project

An Old era of utility tokens listings (2017–2018)

The initial liquidity of the token was one of the hardest things to solve throughout the hype of 2017–2018.

The second wave — IEO (2019)

As a lot of inefficiency was in the process during 2017–2018, exchanges realized that they could offer customers IEO — Initial Exchange offering instead of ICO. This method gives liquidity to the token right after that tokensale as the project is making a selling in collaboration with an exchange.

Modern State of initial liquidity problem — DeFi (2020)

During the summer and autumn of 2020, we’ve seen the enormous growth of the Decentralized Finance niche and Decentralized exchanges either. Boosted by the growth of BTC, in gave users a number of possibilities, including:

  • Leveraging of the crypto portfolio through crypto-backed loans
  • Decentralized insurance
  1. Liquidity providers put liquidity to the pool and are rewarded based on the amount of liquidity provided
  2. Token of the project goes live and liquid
  1. Trustless mechanism of liquidity reward
  2. Liquidity providers can enter the pool with few cents or even a hundred thousand dollars.
  3. Liquidity providing IS NOT PURCHASING of the token (It means, you can withdraw your liquidity later but still have the reward)
  4. The price of the token doesn’t smash down, but starts from 0 and identifies the real trust of the community to the project. Also, it has a huge potential for further price gains.

How is the liquidity reward program looks in the Value Network project?

Get rewarded in VNTW tokens by placing the liquidity to the pool
  1. Liquidity reward for the Liquidity providers equals: 500 VNTW tokens for 1 ETH in the pool
  2. The liquidity should be in the pool for one month to get the reward
  3. The reward is distributed by the smart-contract itself, not the team.
  4. 10% of the total supply will be allocated to the liquidity reward program

Why is Value Network is the community-backed project?

It is so because we start the project in a bootstrapping style, financed by the founders themselves. To maintain the project and sustain product development and releases we have a Development pool, which equals 51% of tokens of the project and which is unlocked in equal parts throughout three years — for the development of the project. Please read more on our token economy in one of the previous posts.

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