The Magic Token 420
420, a DAO which is set to be launched in mid-February has gained massive awareness in recent weeks. For a start, the name “420” symbolizes community unity and empowerment, which is all the project reflects. 420 DAO aims to build a truly decentralized future where everyone gets to enjoy true autonomy. Also, Open-source dApps will be developed by 420 DAO’s highly experienced development team or by other teams with aligned vision.
Unlike most projects, joining the 420 DAO community is not a complex process. All users have to do is purchase an asset-backed token called 420 via its app. The token is an ERC-20 token on an EVM-compatible blockchain. Participants can join the 420 DAO by bidding on the token’s daily auctions. Every day for the first 420 days, there will be an auction for 100,000 tokens. After that, the players put their money into a pool that will be matched against the $100,000 that has been set aside for that day.
In this article, we’ll be explaining some aspects of the token and things users ought to know.
Increasing your token
The most straightforward strategy to increase the quantity of 420, which also means increasing your share of the asset-backed Treasury, is to buy 420 early and consistently stake them.
Long-term focused members will profit from the distribution method. In addition, to protect the health of DAO token holders, certain game-theoretical components are incorporated.
Early DAO members and stakers receive a larger token distribution. Only the stakers receive the staking incentives. Furthermore, Harmonic Reward exists to channel incentives from those who abandon staking to those who remain committed. The stakers’ payout further distinguishes the valuable members from the quick flippers.
The double-halving or tapering process reduces the quantity of issued tokens as well as the duration of each phase by half. The goal is to lessen the initial stimulation and harden the tokens’ Store of Value attribute programmatically.
The first phase will last 420 days, with a maximum of 420,000 tokens being emitted per day. The second phase will run 210 days, with a daily token emission limit of 210,000 tokens. The third phase will last 105 days, with a daily maximum of 105,000 tokens being emitted. The fourth phase will last 52 days, with a maximum of 52,000 tokens being released per day.
New tokens will be produced at the same pace as during the fourth phase until the supply maximum of 420,000,000 tokens is met. In around 12 years, the cap will be achieved.
Token and funds allocation in pools
If the auction is a success, 80 percent of the money raised will go into the DAO’s Treasury. The remaining 20 percent, which can be changed later subject to governance vote, will be given to an Operations Fund to ensure that operating costs are covered in the long run. The operations cash will be utilized to run the daily operations, expand the DAO, establish symbiotic relationships with DAO workers and friendly protocols, among other things.
Every day for the first 420 days, 220,000 tokens are given to reward stakers alone. As previously stated, the quantity of tokens successively halves during the subsequent phases thanks to the double-halving method.
During the first 420 days, the DAO will match 1:1 of the auctioned tokens, i.e.100,000 tokens per day, to distribute to several pools, including 60,000 tokens to the Reserve Pool, 30,000 tokens to development and marketing, and 10,000 tokens to early subscribers.
About 420 DAO
420 DAO is a decentralized platform that seeks to establish a truly decentralized community where its users have full governance rights, including the treasury. As a DAO, 420 will invest in potential DeFi projects, and the proceeds would be further used to develop the community.
For more information on the magic 420 tokens, check out the website.