One of the original intention of WaykiChain stable coin system is to realize the security of users’ funds and maintain the safe and convenient circulation of digital assets in the cryptocurrency market where the price fluctuates greatly. In order to ensure the stability of the stablecoin and the good operation of the whole system, the system needs a set of effective governance mechanism. And WGRT is to play the key of “stability maintain” in this process.
The abbreviation of WGRT stands for WaykiChain, Governance, Right and Treasure. The initial distribution of WGRT will be total 21 million and will be distributed to the community through replacement and rewards.
Specifically, WGRT has three main functions.
As governance coin, WGRT represents a right, responsibility and obligation to participate in community governance. This is more reflected in the WGRT coin holders’ proposals and voting rights. Any administrator who meets the system setting rules can initiate a proposal, which mainly includes setting the system running parameters such as interest rate and penalty rate. All WGRT holders vote to determine whether the proposal is approved and implemented.
According to the voting governance rules, the more WGRT you have, the greater the right to speak. It can be said that the governance of the whole stablecoin system is jointly participated by WGRT holders.
The operation of the stablecoin system will generate a stability fee and penalty, and users holding WGRT will share the income — during the maintenance of CDP and liquidation, part of WUSD entering the system will be converted into WGRT and destroyed, which will indirectly increase the value of WGRT.
Resources for Asset Restructuring
The system’s risk stems from the possibility that fluctuations in the price of mortgage assets could lead to CDP insolvency, so in addition to introducing the liquidator mechanism, WaykiChain stablecoin system also initiated the second risk defense mechanism, the risk reserve funding pool.
The stablecoin system will use the WUSD in the risk reserve funding pool to close the position of the insolvent CDP, and after the liquidation, the WUSD that is vacant by the risk reserve fund will be supplemented through the exchange of WUSD for the assets released by the CDP, and the system will also issue WGRT and convert it into WUSD in the decentralized exchange. This is why WGRT serves as a resource for asset restructuring to supplement the loss of insolvent CDP, so as to guarantee the stability of WUSD.