How decentralized finance promotes the fair issuance of NGK token?
The crypto industry in 2020 is very lively. After Polkadot was launched, Filecoin also joined the crypto industry. While the decentralized NGK blockchain will also be launched this month. So, how does the NGK blockchain use decentralization to promote the issuance of tokens?
If a specific existing asset is needed to mine a new token such as the NGK token, then there must be many hidden values in that asset.
In 2018, a branch of Bitcoin was launched and airdropped by Bitcoin and much smaller supporters. This is because Bitcoin was privately issued. The market value of ZCL soared from US$3 million to over US$600 million.
This shows how the token creator obtains benefits through the information asymmetry or the hoarding of assets before the issuance. When the token is put into use, they could use these assets to mine the new token or use a higher market price to sell these assets.
When YAM was issued on Ethereum, the assets that could produce YAM token were similarly affected. In the first three days, the transaction price of COMP increased by 47%, LINK price increased by 34%, MKR price increased by 31%, and SNX price increased by 23%. This reflects the potential value of choosing which tokens to be used.
To put it simply, we could predict the future projects by considering the value of demand for the supported tokens, and create a synthetic pre-mining by choosing their right tokens.
The shortcomings mentioned above have made the NGK project team decide to build a decentralized financial system. Hence, the team introduced a decentralized oracle machine to write the smart contracts into the blockchain in digital form, so that NGK could be traced and cannot be tampered with throughout the process of storage and execution.
The oracle deployed an oracles smart contract on the NGK.IO network. If there are some unethical organizations use the Ethereum technology to build their own private chain or consortium chain, the oracle machine on Github can provide an open source smart contract code for the data services, which can be used like a blockchain after the self-deployment. The smart contract is mainly used to shape any type of agreement or relationship with specific conditions and results. The smart oracle makes the implementation of smart contracts simple, flexible and powerful.
Applying the idea of decentralization to NGK token could prevent the risk of NGK token creators from hoarding the coins and mining in advance. It can also shape the fairness of NGK token acquisition, improve the credibility of NGK projects, and acquire more users’ trust.
