Fortune DAO — the first decentralized reserve currency protocol, available on the Cronos network, based on the FORT token. Each FORT token is backed by a basket of assets (e.g. DAI tokens, FORT-DAI LP, etc.) in the FortuneDAO treasury, giving it an intrinsic value below which it cannot fall. FortuneDAO also brings economic and game theory dynamics to the market through staking and mining.
About Fortune DAO
The purpose of the Fortune DAO — to build a policy-controlled currency system, where the behavior of the FORT token is controlled at a high level by the DAO. The developers believe that in the long term, this system can help to optimize stability and consistency so that FORT can function as a global unit of account and medium-of-exchange currency. In addition, the accumulated treasury will be used to farm in Cronos. This allows access to the wider Cronos ecosystem by growing native tokens.
Other features:
| 1 | The main benefit for stakers comes from increased supply. The protocol mints new FORT tokens from the treasury, most of which is distributed among the stakers. |
| 2 | Thus, profits for stakers will come from their auto-adding balances, although price risk remains an important factor. That is, if the increase in the balance of tokens outpaces the potential drop in price (due to inflation), the stakers will profit. |
The main advantage of miners - the constancy of prices. Miners contribute upfront capital and promise a fixed income at a set point in time. This income is given in FORT tokens and the profit of the miner will depend on the price of FORT when it is time to mint TIME.
Because the Treasury backs each FORT with 1 DAI, the protocol will buy back and burn FORT when it trades below 1 DAI. This causes the price of FORT to rise again to $1.00. FORT can always trade above 1 DAI because the protocol does not set an upper limit.
More about defi app
At a high level, FortuneDAO consists of a protocol-driven treasury, protocol-owned liquidity, a bond (minting) mechanism and high staking rewards, designed to control supply expansion. Linking on the "Mint" page generates profits for the protocol, and the treasury uses the profits to mint FORT and distribute them to stakers. With LP tokens, the protocol can accumulate liquidity to ensure system stability.