The World’s First! Three-Token Economy Model Based on The Bottom Layer of WaykiChain (WICC)

The three-token economy model of WaykiChain is composed of WaykiChain public blockchain assets WICC, stablecoin WUSD and the governance coin WGRT. The mutual promotion and balancing of the three different types of token can provide the entire stablecoin system with the stronger risk resistance, manageability and development potential. The relationship and functions of three tokens can be summarized into the graph below.

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According to the graph, firstly you should know the relationship between WICC and WUSD. When the stablecoin mechanism runs well, the amount of WICC locked by the system will gradually rise. But the quantities cannot be locked indefinitely and most WICC cannot be locked in CDP. There’s a concept in the system called the Debt Ceiling. If the number of WICC locked is too much, once the market comes to extreme situation, by this it means that WICC ‘s price in a rather severe case of dramatic drop during a very short period of time, and the number of CDPs needed to be liquidated in the system will rapidly increase, then there will be a large amount of WICC to sell, leading to the stablecoin system collapse, and even affect the WaykiChain ecosystem. Debt Ceiling is designed to avoid this situation.

In terms of the relationship of WUSD and WGRT, two expenses stability fee and the penalty (the value support of WGRT) become higher, WGRT achieves bullish. The benefits are associated with the circulation scale of WUSD. The broader the circulation scale, the more benefits. CDP decides the stable fee and penalty proportion in accordance with each specific situation to WGRT market volatility and the pledger. If the CDP maintains good performance, it will not be liquidated, the stable fee will be high. If there are more liquidated CDPs, then the penalty will be high.

Finally, the price trend of WGRT is related to WICC. If WICC has a positive trend and there is a high bullish sentiment in the market, then there will be more holders using the stablecoin system for leverage. If positive cycle is started, there will be more pledged WICC, which will further promote WICC rise. As the number of pledged WGRTincreases, it means that the scale of WUSD is also increasing.

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