The Standard Token
The Standard Token (TST) allows holders to participate in the governance system deciding on stability fee rates, new features, hard Asset Custodians due-diligence and onboarding requirements. It is designed to ensure efficiency, decentralization, and transparency of the protocol.
Standard Token limited supply can be acquired during the token sale or on secondary exchanges.
Standard Euro algorithmic stablecoin backed by digital & physical assets.
The Standard DAO
Is a decentralized autonomous organization responsible for governing and growing the ecosystem.
It consists of the community of Standard Token holders that will manage the entire system by making key decisions utilizing smart voting mechanisms and incentivized prediction markets to determine the right stability fees for all the sable assets that people can generate. Standard token holders can profit from governance participation rewards, token burns as well as buying liquidated assets under spot from other users.
TST holders can create and vote on upcoming active proposals to upgrade The Standard protocol.
Voting periods are between three and seven days as set by proposal creators and allow token holders to decide on multiple subjects, such as the stability fees (before we move to a full prediction market model), new new collateral types and due-diligence requirements for new hard asset custodians to join the network.
TST holders also decide what to do with the treasury of TST that is collected from people who choose to pay their stability fees in TST.
Choices are to burn, airdrop or spend on marketing, protocol development or business development to onboard new partners.
Prediction markets will be used to determine the correct stability fees in the protocol so that stable assets stay pegged.
One of the huge developments that The Standard brings to DeFi is the ability to generate an endless list of different stable assets not just a single stable coin like Maker DAO’s DAI USD pegged token.
The question is how do we achieve this with potentially hundreds of stable assets? The secret is to solve DAO voter apathy. Most DAO’s implement a simple voting mechanism but no one shows up to vote. They simply hold the tokens in the hope of great returns. In economics it’s called the free rider problem.
Instead propose using markets. There are always people wanting to speculate in the hope to make a profit by guessing the correct future. There is a large body of academic research which concludes that prediction markets are one of the best ways humans have for correctly forecasting the future. By placing bets people put dogmas aside if they know something is true. The decision is made by what outcome has the greatest odds of coming true according to the market.
The Standard will start with one stable asset pegged to the EURO and then release more over time. We will start with simple voting to set stability fees, then transition to a prediction market where voters use the market for information to decide on the best stability fees. The final phase will be to fully transition over to a pure prediction market model without any voters.
TST holder may profit from trading fees as well as liquidity pools to drive the prediction markets.
Discounts & Treasury
One of the big features of TST is that users of the protocol get a 50% discount on their stability fee if they stake and pay the fee in TST. These fees are sent to the DAO treasury and the DAO decides on what to do with these funds.
The TST holders are supposed to legitimize how much gets burned, airdropped, spent on business development or marketing the protocol.
The governance concept is designed to ensure efficiency, decentralization, and transparency of the protocol.
Token holders have more voting power the more tokens they hold and will, therefore, have less incentive to participate in bad actions that could harm the platform. It is the platform’s aim to reach a critical mass of token holders, which will protect all stakeholders from centralization problems.
From the beginning of this project we have focused on decentralisation. The foundation has focused of never creating whales but rather distributing the tokens to a large crowd.
The total supply of Standard token is fixed to 1 billion tokens. A burning mechanism within the protocol
will decrease the total supply over time.