The current mainstream Tokenomics has taken the wrong path

In the endless Token unlocking, this market phase unfortunately became the "worst Bull Market in history": BTC's price has returned to its previous highs, but most Tokens continue to fall. In my opinion, the continuous downturn of the entire cryptocurrency, especially the decline of Decentralized Finance, is rooted in the fact that the development model of current projects has clearly deviated from the core spirit of blockchain. Currently, most of the infrastructure projects in the industry are on the wrong path.

Venture capitalists view Web3 as a market to obtain huge profits, leading to a large influx of capital. However, besides endless token unlocking, have they really brought revolutionary innovation to the industry? Although BTC and Ethereum were developed without the participation of venture capital, they have made pioneering contributions to the blockchain industry and continue to dominate most of the value in the crypto market.

Even if we take a step back and consider whether VC can really endorse a project, the answer is still disappointing. The last Bear Market witnessed two major failures: LUNA and FTX. Both of these projects received support from many top VC firms, but they ultimately ended in failure, dealing a heavy blow to the industry.

Since BTC pioneered this industry, there are fewer and fewer people who adhere to the principle of 'don't trust, verify'. The industry is gradually falling into the dominance of capital, and the core spirit of Decentralization is forgotten. The cost of this forgetfulness is enormous because the mission of Decentralization supports the value of the entire industry - to create a new financial system, and even possibly a new world. This also explains why BTC, without the support of venture capital and an anonymous founder, still occupies over half of the Cryptocurrency Market Cap. It also highlights the failure of thousands of projects established by capital.

Another key reason why the industry is currently in trouble is the lack of true innovation. Because of this lack of innovation, support from venture capital is not only valuable, but crucial, as there are few other standards by which to evaluate these projects. Additionally, with the support of venture capital, projects can quickly attract market speculation and cash in, leading many founders to become impatient and resort to collusion and exaggerating funding requirements. This environment makes it difficult for true innovators to get support or follow. When the entire encryption industry lacks innovation, the situation described at the beginning of this article will inevitably occur. This is like a self-reinforcing 'death spiral' that will drag the encryption industry into an irretrievable situation.

When the project party and VC only need to sell Token to easily earn huge profits, no one has the patience to pursue real innovation until this premise gradually becomes invalid. Now the industry has reached this stage, and users are also aware of this. Everyone is playing with open cards, just waiting for a real revolution to arrive.

The problem lies not in capital itself, but in the way it enters.

BTC has created a truly Decentralization network that is open and fair to everyone, allowing equal participation. Since its inception, it has attracted a large influx of talent and capital. So, how do venture capital firms participate in the rise of BTC? The answer is simple: by investing in industries related to its Tokenomics and ecology, such as Mining equipment, operation, trading platforms, payment platforms, etc. Now, imagine if Satoshi Nakamoto had pre-allocated 20% of BTC to himself, 20% to the foundation, and another 20% to venture capital firms-would BTC still attract such a diverse range of talent and capital? Would it have grown to the scale we see today?

By simply reviewing the development history of Bitcoin, I have summarized the following key points:

· The founding team of the infrastructure project should design a tokenomics that is open and fair to everyone;

· VC should leverage its research capabilities to early invest in areas related to the tokenomics or ecosystem applications of these infrastructure projects' tokens;

· VC should directly sponsor promising infrastructure projects to demonstrate responsibility for the industry's development and to gain more market information and opportunities in the process.

With the emergence of more such projects in the market, early-stage venture capital firms that adapt to this new way of thinking will benefit in the next wave of industry rise. In contrast, venture capital firms that continue to invest heavily in infrastructure projects using outdated methods will find it increasingly difficult to balance their income and expenses.

Pure.cash Revolutionize Tokenomics

The Mining mechanism of BTC allows everyone to participate fairly, has gained widespread trust, and continues to cultivate a prosperous ecosystem. In today's encryption projects, Airdrop has become a more common method to attract early users. However, most of these projects only allocate a small portion of Airdrop to the community, which seriously deviates from the core spirit of blockchain and is one of the main reasons for the current industry dilemma.

Pure.cash is an innovative protocol that offers complete decentralization, delta-neutral stablecoin, and integrates perpetual futures contracts that only take long positions, based on the ETH network. By introducing a new tokenomics model, i.e. 100% of the tokens are airdropped to the community at once, while continuously burning tokens, it aims to be the turning point for the encryption industry to return to its original mission. For more information on the principles behind Pure.cash, please visit 'The Road to the Holy Grail: Solving the Trilemma of Stablecoins'.

PURE Token will be distributed to the community through the Genesis Airdrop, without any allocation for the founding team or venture capital firms. The protocol developer, Pure.cash Labs, will receive 20% of the platform's fee income to ensure fair participation for all community users and provide sustainable development incentives for the protocol. The remaining 80% of the fees will be allocated to LP, the PURE burn pool, and the $PUSD application scenarios.

Reverseissuance Model

The Reverseissuance Model (RIM) is an innovative Deflation model launched by Pure.cash. The main feature of this model is that the Maximum Supply is reached at the Token Generation Event (TGE), after which Tokens continue to be destroyed and no new Tokens can be minted. This ensures that the circulating supply of issued Tokens under this model can only decrease over time.

Fixed Price Destruction Mechanism

The Fixed Price Burn Mechanism (FPB) is a groundbreaking solution introduced by Pure.cash to address the challenges of token empowerment in the current Decentralized Finance projects. Pure.cash sets a fixed burn price (adjustable through DAO) and continuously injects protocol revenue (35% of total transaction fees) into the burn pool. This mechanism allows anyone to burn $PURE and receive assets from the pool at a fixed burn price.

Conclusion

In conclusion, Pure.cash has put forward a revolutionary Tokenomics approach by embracing the core principles of fairness and Decentralization. By ensuring 100% Airdrop of Token to the community and introducing innovative mechanisms such as Reverseissuance and fixed-price destruction, Pure.cash has not only addressed the shortcomings of current encryption projects, but also set a new standard for the industry. This model is likely to become the long-awaited revolutionary catalyst in the encryption field, refocusing attention on genuine innovation and sustainable growth.