The anonymous team behind this project really stands by their words of developing a truly decentralized project. They have always put the input of the community into consideration in every step of development. Prophet Finance is a yield generating token that stemmed from Reflect’s Finance initiative but with flexible features. To mention but a few are its Adjustable Fees of Transactions, Provision of Robust Liquidity, Deflationary Token Supply, Rewards for Liquidity Providers, etc.
The Decentralized Future of Prophet Finance
Many decentralized finance initiatives spread across this industry, yet many are still being managed fully by the developers. Some of them end up falling into the abyss of scams, especially when there is any form of dispute among the developers. Because of this, the team behind the initiation of the Prophet project has thought it wise to start relinquishing the decision-making power into the hands of the community. According to the team’s plans, this will go a long way to increased liquidity and value of Prophet tokens as users require tokens to participate in decision-making.
Recent Developments based on Community Feedback
As already stated, Prophet’s protocol was designed to have flexible systems that will allow it to adjust to both favorable and unfavorable conditions of the crypto space. Many times, we see projects falling steeply when there is intense volatility in the crypto market. To avoid this, the community, together with the team, has decided to raise the maximum limit of transactions from 9500 to 20,000 PROPHET. This is their view would give room for large investors to buy large sums of tokens. This decision acts as a two-edged sword as it increases the token’s liquidity and generates high yield rewards for holders.
The starting rate of tax transactions shared across the community has also been increased from the initial rate of 2% to 3% to compensate for the growing numbers of its community. Besides, 6.5% of the total supply of tokens has also been burnt as per the writing time. The gradual reduction in supply confirms its feature of deflationary token supply. A feature long term investors consider when investing in any project.
The Pacification for Liquidity Providers
Upon the launch of this project, 2.5% of the total supply was distributed to the PROPHET/ETH liquidity pool. On the other hand, these liquidity providers were blacklisted from receiving the tax rate rewards that are distributed to holders. However, this decision does not favor liquidity providers, especially in conditions of bearish conditions. To worsen the situation, future liquidity providers would also not benefit either. Hence, the team has thought it wise to create a DAI/PROPHET pool whereby liquidity providers in that pool will not be blacklisted from receiving rewards. The introduction of this new pool will hedge against token volatility because DAI is a stable token.
Upcoming avenues to Earn
The higher the liquidity that runs on the platform, the higher the number of transaction fees redistributed to holders, and the more tokens are burnt. The team has decided to organize trading competitions in the coming days to boost transactions across the ecosystem. This series of competitions would allow users to earn more tokens on the platform while establishing a strong community bond among members. Together with the prizes, the competition’s details will be announced in due time on all official platforms.
In the nearest future, the PROPHET DAO discussed in our subsequent release will decide how to run these community activities.
The DeFi Space is in its nascent stage. It’s impressive to see startups like Prophet Finance exhibiting the true features of DeFi, which acknowledges its community’s decisions. The success pace of this project goes both to its developers and the constant support from its members.
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