September 28, 2020 | technology | No Comments
TALLINN, Estonia, Sept. 28, 2020 (GLOBE NEWSWIRE) — The Decentralized Finance (DeFi) ecosystem is gradually shifting from the very fundamental aspect of decentralization to using what are called ‘governance tokens.’ These types of digital assets have become popular since DeFi picked up earlier in the year, and then gained momentum when Compound launched its ‘COMP’ governance token in June. While they have emerged as the fuel for DeFi network growth, some innovators are taking advantage of the asymmetry in technical knowledge and issuing governance tokens mainly to the developing team.
Well, a recently debuted project dubbed ‘Kush Finance’ is returning the DeFi ecosystem back to its basics using its own governance token, called ‘kSEED.’ Unlike other DeFi projects that have allocated a significant amount of governance tokens to a small group, the Kush Finance DeFi token is designed to turn kSEED holders into a collective whale. This basically eliminates a scenario where whales dump on unsuspecting DeFi token holders as has been the case in recent weeks.
To achieve full decentralization, Kush Finance has implemented a bidding model which allows kSEED token holders to exercise complete governance within its DeFi platform. They can do so by constructing and proposing their preferred bids within periods identified as ‘voting rounds.’ Once the process is complete, the Kush machine will automatically execute the bid with the most votes at the end of a particular round.
The Kush Finance bidding model also accommodates additional bids by chaining them onto the initial order. Consequently, each Kush Finance voting contract can be upgraded, replaced, or reconnected to allow kSEED holders to vote on a bid that reconnects to the rest of the network. In doing so, Kush Finance has eliminated the need for a central developer to keep updating its DeFi ecosystem. Furthermore, the voters can also vote to transfer funds for paying an external auditor.
Kush Finance Tokenomics
This project possesses a total supply of 420,000 kSEED tokens with 262,500 vested as locked liquidity for one year on Uniswap LP. Some of the active decentralized markets where the token is currently trading include Uniswap and 1inch Exchange. Ideally, Kush Finance DeFi users provide liquidity by staking their kSEED tokens and have an option to bid on other Uniswap tokens.
With speculation being a challenge to most DeFi projects, the Kush Machine has been engineered such that it never has to make a single dime of profit in order to maintain its value for kSEED holders. This function ensures that speculation and minting do not outpace the value of kSEED by continuously burning kKUSH, the token used to pay voting fees within Kush Finance’s DeFi.
Half of the kKUSH which is burned is swapped into the Kush Finance rare KushOG (KOG) token, which is then used to pay out rewards to the kSEED and kKUSH liquidity providers on Uniswap. The distributions of these rewards are determined by the voters and can only be initiated once for every two-day period. In addition, allocation happens once the distribution period is over so as to prevent malicious users that may choose to claim twice.
It is quite noteworthy that Kush Finance has already completed a successful giveaway where 1,200 people were allocated 70 kSEED each and an additional 84 kSEED went towards giveaways and community support, totaling $100,000 worth of kSEED. With these tokens, the holders can further contribute to the kSEED ecosystem by creating their own contract extensions or seeding them for kKUSH. The latter opens an opportunity to farm the mighty KushOG token whose mintage is extremely low, with only 42 coins burned by the developing team. Despite being at its early stages, the Kush Finance DeFi has positioned itself as one of those projects which is bringing decentralization back home!
Company: Kush Finance
Contact: Gabriel Paun
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fe6b2df3-21b5-43f5-91a7-b3413c751b83