Stablecoins has evolved to insulate crypto investors from symbolic price volatility, or at least the perception of it. MahaDAO is one of the first platforms to see that fiat-related stablecoins are not as great as that for securing purchasing power, at least on a time frame of more than a few months.
The ARTH token ecosystem is the solution to this problem, and is a carefully thought-out platform that could change the way investors see value.
When people think about the price of big crypto tokens, like Bitcoin or Ethereum, the idea of a volatile asset class might pop into their minds. While this is partly true, the direction of crypto prices has been up ever since they were introduced to the public.
Long-term crypto investors probably love this, but anyone who has to pay for daily needs with cryptos is not in the same position.
The solution to this discrepancy between short-term volatility and long-term appreciation has been fiat-related fixedcoaches, but this is not a perfect solution. There is no doubt that the value of fiat currency is declining over the long term, and the price of useful commodities is rising in terms of fiat currency.
When US President Nixon ended the gold standard in 1971, he sold an ounce of gold for $ 35 – an ounce of gold now costs more than $ 1800. Clearly, using fiat currency to balance the volatility is the crypto markets are a very bad idea in the long run.
People feel comfortable using fiat currency because large, fast losses of purchasing power are rare (in at least some cases), and the price of day-to-day necessities is relatively stable. On the other hand, over time, using fiat currency or fiat-related stablecoin is a bad idea, as the losses from this asset are guaranteed.
MahaDAO has a Novel Solution to the Stablecoin Dilemma
MahaDAO has created the infrastructure to support the ARTH token, which is a Bitcoin that is backed by a basket of unrelated assets. While fiat-related stablecoin is subject to price changes in the underlying fiat currency, a single asset cannot influence ARTH’s value – which makes it a much better medium and long-term volatility hedge .
Here are a few of the things that make ARTH a great financial tool:
Fixed value (non-fiat)
The ARTH token is supported by assets attached to a Global Measurement Unit (GMI). This is not a new idea, but MahaDAO is the first platform to create a token based on a multi-asset basket that will isolate investors from fiat and crypto volatility.
Retaining Purchasing Power
Fiat currency is a terrible way to store value, as central banks regularly inflate the currency supply. More currency chasing less commodities means less purchasing power, especially for smaller economic actors who do not have access to effective hedging strategies. ARTH solves this and allows small investors and larger entities to access the same tools.
Wealth Distribution of Wealth
As a DAO-based ecosystem, the ARTH token puts the community in the driving seat. Not only will more actors have a say in how the system is operated, but the level of transparency is also much higher than one would find in the established, central financial system.
Making Solid Idea Reality
At the Bretton Woods conference in 1944, economist Benjamin Graham proposed that instead of using global gold currency, the final Western design, the world should use a currency supported by a group of raw materials. An approach that uses multiple assets is likely to be better, as price movements in a single market cannot create large value changes in a contingent asset.
Graham’s plan never went ahead, but now, MahaDAO is creating a modern version of this idea. When a person has a token derived its value from non-fiat assets, they are largely free from medium and long-term fiat depreciations. ARTH is also impossible to ‘print’ as a fiat currency, as it is based on a range of assets that cannot be created at will.
ARTH has a vault which is the direct owner of a collateral that gives the ticket its value. The team at MahaDAO has selected a range of assets for the vault, which is being actively managed. For now, the team at MahaDAO is managing the vault, but as the ecosystem evolves, this work is likely to become one of the ways in which the community manages its interest in the platform.
One of the reasons why this type of currency has not come to market sooner is because central banks have been able to control prices more or less in developed economies over the past few decades (except the 1970s) , but this period of relatively stable price appreciation is likely to end.
Perfect Specs for Retail and Organizational Use
In addition to being based on solid value principles, ARTH also addresses some of the challenges that early symbolic platforms have struggled with. The token can be sent or received with a transaction time of less than three seconds and is basically free to use due to a meta-transaction architecture.
In short, it has the perfect spec sheet for small transactions, and can also be used by large investors as a store of value. ARTH can also be used across multiple chains, with all the benefits of deep liquidity that come with that functionality. Staking will also be supported and used to reward early adopters.
First, MahaDAO developed a ticket called LAxmicoin, aimed at the Indian market. Unfortunately, the project met regulatory issues, which led MahaDAO to continue research on the platform it is now launching.
As a result of the company’s extensive development experience, it successfully created features for the MahaDAO platform, and an ARTH ticket that makes it well suited for retail level use. India is one of the largest unbanked markets on earth, and these types of low-cost equipment that allow for fast, zero-cost transfers are a great solution for an unbanked population.
The MahaDAO foundation has some great people behind the scenes and is a sign that it is liberating.
Here are a few of the most important people at the foundation:
Steven has a background in computer science and mathematics and was educated at the University of Toronto. He has worked as VP of Products and Blockchain at Intellibuzz, and is the CEO of MahaDAO. Steven also founded Vezures, a blockchain development company focused on creating blockchain platforms like Ethereum, EOS, Hyperledger, or Fabric.
Pranay built Intellibuzz whose products have boosted revenue and created hard cash savings for more than 7000 small businesses and over 100 corporate companies, some of which are in the Fortune 500. Pranay graduated from Stanford Graduate School of Business with education in entrepreneurship and entrepreneurial studies. .
Gafoor leads the Growth team, CryptoControl, one of India’s most popular crypto startups. He has Google Ads Search Certification as well as Google Analytics Individual Qualification. Gafoor has a background in digital marketing, social media marketing, and creating content marketing strategies.
The team at MahaDAO not only have some great ideas, but they have also shown that bringing their ideas to life is possible. If you want to learn more about MahaDAO and the ARTH ticket, click here to read the white paper.