With the rapid development of blockchain industry, a variety of blockchain projects have emerged on the market. There are projects that are useful for our lives, as well as projects that run away after earning money. Many projects concern issuance of token and profit at most. It is not from the perspective of investors to consider the value and purpose of tokens and how to use these tokens.
As a good project, the services and value provided by the token must be useful, innovative, and able to really solve users’ needs. For investors, if the purchase of tokens is only for the sale on the exchange and for earning profits, without realizing the value of the token, it is hard to hold the valuable tokens. Only having the full recognition of the token, the token could have the investment value and users could obtain the ideal return on investment. In this article, let us take VENA tokens as an example, from the perspective of ordinary investors, to analyze the usage and value of tokens.
In just two weeks, VENA Network completed the tens of millions of Cornerstone Funding, but after that, it did not start the private funding round like other ICO projects. Instead, the entire team has focused on product development, and the first generation of products will be launched at the end of July. Vena Network, which has completed cornerstone funding, continues to receive support from investment institutions, and the list of investors is still being updated.
Cornerstone Investors: LD Capital, Homerun Capital (Singapore), Phoneixfin Fund, Consensus Lab (Mars Financial Ecological Investment Fund), Higgs Capital (Hong Kong), Blockchain Global (Australia), Newdo Venture (Silicon Valley), Fireblue Capital, Future Global, Transference Fund, BYTE Capital, VRF Capital, and Kong Huawei (a well-known blockchain investor).
1. Introduction of VENA Network
The aim of VENA Network is to create a decentralized cryptocurrency financing network through VENA Protocol. VENA Protocol is an open source protocol based on blockchain. Through VENA Protocol, users can conduct transactions between cryptocurrency and fiat currency or borrow fiat currency by pledging cryptocurrency, and the smart contract is adopted to prevent fraudulent conducts. VENA transaction market shall provide users with accurate market data, as well as fair, transparent, safety and low-cost OTC transaction and collateral loan service.
In addition, VENA Network as a distributed financial network, each KOL / traffic portal through the digital asset lending provided by VENA and OTC's Dapp solution can become the transaction agent super node in the network. For example, the user of super node A enters the shared liquidity pool through the order submitted by Dapp of super node A. Besides, the users of other super nodes will see the order through Dapp to carry out the matching transaction, and they can share the liquidity pool.
The VENA Network targets the protocol layer in the blockchain domain to build an ecosystem. Its appeal and advantage lie in its fact that it does not attempt to cater to all market and market details of the vertical domain of the agreement, but rather to motivate different roles in the ecology. These roles seek and serve multiple markets and create great value by providing infrastructure to help individuals. The VENA Protocol abstracts the underlying rules of the financial system operation in a layered design approach, and gradually promotes the emerging markets and ecological roles based on the VENA Protocol, under the strategy of the Vena Network with debt and transaction scenarios as the business leader. Eventually, it will promote the prosperity of the entire VENA financial ecosystem.
2. The Multiple Value of VENA Tokens
After understanding the project, we know that the borrower can borrow a loan on the VENA platform, the creditor can make a profit on the VENA platform, users can conduct OTC transactions. All of these practices are not controlled by the third-party centralized platform but directly by the user using smart contracts. The VENA Token is the blood and lubricant that operates throughout the “Decentralized System”.
(1) The Necessity of the Vena Node
The Vena node should be reviewed and approved, and a certain number of VENA Tokens shall be deposited to Vena Foundation as a guarantee. In addition, the transaction market can earn profits by collecting transaction service charges. After becoming super node, users could have the technical support of VENA Community, share the liquidity pool, and quickly start their own OTC and P2P business without limit.
What is the VENA order pool? The traditional centralized exchange can only cover the users in the exchange but joining the VENA Network is equivalent to opening up the traffic of each exchange. The sell orders of the exchange A can be also purchased by users of exchange B, which enhances the flow and makes the market demand more efficient.
(2) The Necessity of the Juror Node
The juror node should be reviewed and approved, and a certain number of VENA Tokens shall be deposited to VENA Foundation as a guarantee. After each arbitration, the juror giving a reasonable ruling shall obtain tokens as awards, and the one giving an unreasonable ruling shall suffer from token loss.
(3) Having an Incentive Mechanism
Users who use VENA Tokens as loan collateral shall enjoy 50% discount of service charges and obtain higher loan-to-value ratio or lower liquidation limit. Using VENA as a collateral for lending can enjoy better interest rates and “Risk-free VIP treatment”: if the value of the collateral touches the closing line, the system will not clear the collateral, which protects the user's property.
Users who hold more than a certain amount of VENA Tokens are automatically upgraded to different levels of VENA VIP membership, enjoying interest-free lending, unsecured lending, higher interest rate returns and other different levels of benefits.
(4) Entry the Decision-making Level and Reception of Token Rewards
VENA Token holders can participate in the management of the VENA Protocol, and even become a member of VENA DAO. When entering VENA's decision-making level, holders could receive the corresponding Token reward.
(5) Becoming the Trader
The VENA Token requires for the Vena Node to secure the collateral can be obtained through public sale. The VENA Token holder can invest to become an investor of Vena nodes, and the trader will pay dividends to the investor.
As a private investor, only we understand its function and value when purchasing tokens, we could fully utilize its investment value. No matter which blockchain project, we all need to have a deep understanding like we know VENA. A token can only achieve real value if it can really play a role in the ecosystem of the project. The bubble will eventually burst, but investing in value is long-term and reliable.
Welcome to contact Vena Network via Telegram Link:
http://t.me/vena_networkWelcome to follow Vena Network on Twitter:
https://twitter.com/VenaProtocol
