POT (Proof Of Trade)
$POT is the trading fee sharing token in TraderDAO. Users who hold $POT can enjoy the fee sharing premium of the entire platform. The more $POT they have, the higher the value.
The amount of $POT minted depends on the user’s trading volume. The higher the trading volume, the more $POT tokens can be minted. Minting of every $POT token requires a corresponding funds received by the treasury. Therefore, $POT is minted with 1:1 real yield asset backed.
The $POT treasury will grow bigger in value with more new traders chip in. Every trades in the market under TraderDAO sub-accounts will gradually increase the base price of $POT.
The relationship between $POT and TradeGDT is where $POT trading fee sharing is to incentivize traders to trade where higher trading volume equals more trading data for AI pattern learning which will create a better version of TradeGDT
$POT Mechanism
$POT token is minted through Proof Of Trade where traders just need to trade as usual and will be rewarded with $POT token. Users need to achieve the corresponding trading volume contribution through their trading volume, that will determine their $POT minting power, from lowest 20% to highest 80%. The rest of the premium funds that are not used to mint $POT, will be transferred to the Difficulty Block Treasury.
As $POT is minted when trading fee rebate is pumped into treasury to back the value of the token. This asset back is also real yield back as the fee generated is a revenue by TraderDAO, the trading fee rebate from the partner exchange back to TraderDAO. The asset backed mechanism of $POT will buy back the $POT token maintaining the base price of the token.
As an asset backed token, $POT treasury is transparent where it is open to everyone to view and track, hence maintaining and confirming the trustworthiness and legit of the value backed $POT. The treasury will be used to buy back and burn $POT token and with every trade, the treasury will increase its holding.
While the minting of $POT grows, $POT market price will also increase. To be fair to all traders, $POT token will be minted at an equilibrium throughout all trades, a mint difficulty mechanism has been implemented. The difficulty is set as when the market price increases the less token will be minted in order to achieve an equilibrium to all traders.
In order for the $POT token to be a token that can increase in value and to go 100x, an overbacking mechanism is implemented. Every time the Difficulty Block Trading Volume is reached, the Difficulty Block Treasury will transfer the premium funds to the $POT treasury, overbacking it and pushing up the base price of $POT. Not just an asset back token like a stable coin but an asset pump token which its value will increase with the increase of real yield adding into the $POT treasury at every targeted trading volume achieved.
TraderDAO with $POT, is here to gather traders, empower them, and build the great trading community.
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