Introduction
As a decentralized finance system powered by blockchain technology, Smarts Finance is developing a new digital asset that will provide a financial token, which will support the network. Significant use of the digital asset of all DeFi project is that it serves as a means of revenue for the network. While this usage may be limited to the project, the token can also benefit investors and the public. One major medium through which the masses can enjoy and earn the Smarts Finance token is as a reward and incentive for various campaigns. The digital asset of this emerging decentralized finance platform is called Smarts Token, represented as SMAT.
It is a common procedure and managerial protocol to announce a reasonable amount of tokens to be circulated during the launching of the project. A decentralized finance project that seeks to penetrate the crypto market and proffer solutions to financial challenges needs to have a huge volume of tokens in circulation to attract investors and traders to participate in the project. For proper distribution, which should ensure that it covers most of the project's plan and lays a solid foundation to thrive in the crypto market. There is a percentage allocation for each of the Smarts Finance intended use of the SMAT.
The allocation of the entire tokens in circulation differs from one DeFi project to another, depending on the discretion of the management team or the projected trajectory of the platform. Howbeit, there are salient allocation plans included among all DeFi projects. The Tokenomics plan of Smarts Finance focuses on about five (5) areas, which are considered important to the sustainability and success of the project. They include sales, rewards and distribution, team, DEX liquidity lock, and marketing and partnerships. Smarts Finance has 1,000,000 SMAT tokens in circulation for these purposes, with an accrued percentage for each.
The SMAT token will also be effective in ensuring reliable governance on the Smarts Finance platform. Eligibility of community members for voting processes will require the use of the token. It will likewise be useful for value creation and reward distribution across the Smarts ecosystem. The token of this blockchain-based platform is a standard ERC-20 token, which is initiated and created on the Ethereum network. The development team of this platform also envisions listing the SMAT token on centralized and decentralized exchange platforms, thus making it a tradable digital asset that can be effective for value creation and transfer.
Uses of the SMAT Token
For Governance and Voting Processes:
Members of the Smarts Finance community can use the token to participate in any policymaking or governing decision that requires voting. For every account that intends to generate a proposal within the network, it needs to have a voting weight, which is in the form of Strength of SMAT (sSMAT), a product of lock-up function and staking of the token.
Fee Generation:
The SMAT token will also serve as a medium of revenue generation for the network. When users perform certain operations and use certain products on the platform, they will be charged a fee in the form of the network’s digital currency. These operations may include trading, governance, staking, lending, or mining). For the trading processes, the fee is often a specific percentage of the trade amount on AMM exchanges such as Balancer and Uniswap. Smarts Finance accumulates and stores the tokens in their treasury account for distribution as incentives or buybacks.
Incentives and Reward Distribution:
Another essential usage of SMAT tokens is for the distribution of rewards and incentives on the network. The platform compensates its users and investors involved in the DeFi processes and product utility with the digital asset. More so, the currency will be an incentive to subscribers who participate and contribute to various engagements on the network.
Let us analyze the details of the allocation of the SMAT tokens of the Smarts Finance network.
Sales
A fraction of the token of every DeFi and blockchain project is usually allocated for presale purposes. Before the official sale of digital assets to the public, a percent of the entire supply is sold to investors interested to be early partners of the project. Smarts Finance allocates about 25% of the whole volume for sakes purposes, which is about 250,000 SMAT tokens.
Team
The founders, board members, and other team members receive the allocation of a significant amount of the tokens of this blockchain-based project. Smarts Finance apportions these tokens as an incentive to its team, who are mainly professionals and experts and contribute immensely to the growth, development, and success of the project. These are specialists in decentralized finance that have a good number of years in the blockchain industry and setting up sustainable projects. The earmarked figure for allocation to Smarts Finance team is about 10% of the total volume in circulation, which is about 100,000 SMAT tokens.
Marketing and Partnerships
The growth and adoption of any emerging business platform in the blockchain space require an effective marketing strategy and strong partnerships with key players in the industry. An excellent and well-executed marketing plan partly assures any blockchain network of attracting new customers and potential investors to join the platform. Establishing a strong partnership and collaboration with existing businesses in the DeFi industry, as well as vast and experienced experts, will build the structure of a project. Smarts Finance recognizes the importance of these activities and allocates a significant amount of tokens for them. The allocated amount of the entire volume in circulation for this purpose is 5%, which is approximately 50,000 SMAT tokens.
DEX Liquidity Lock
Providing robust liquidity backing for decentralized exchanges secures the trust and interest of subscribers in the project. About 15% of tokens is earmarked for this.
Rewards and Distribution
Ensuring there is a distribution of a high volume of SMAT token puts the project on a fast pedestal and assures the customers of sustainability over a long period. More so, Smarts Finance is a platform that understands the importance of offering rewards to members of the community who participates, interacts, and contribute on the platform. About 45%, about 450,000 SMAT tokens, of the total volume is allocated for this purpose.
Useful Links
Website: https://smarts.finance/
Telegram: https://t.me/smartsfinance
Whitepaper: https://smarts.finance/assets/documents/WhitePaper.pdf
Discord: https://discord.com/invite/rertF5a
Twitter: https://twitter.com/Smarts_finance
Medium: https://medium.com/@smartsfinance
YouTube: http://www.youtube.com/channel/UCp58Zt6o88nj9jH8tKtvzSw
Author
Bitcointalk Username: Nesanens
Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=2767345
Proof of Authentication: https://bitcointalk.org/index.php?topic=5290318.msg55902809#msg55902809
Eth Address: 0xEC77d8EF19da5DC6e60f306B625378aeBeafe9e2