All of the so called millenials remember Mom and Dad saving money in the bank while earning interest for keeping it there.
Slowly that interest has diminished in to close to nothing.Some people actually pay for keeping their money in the bank today.
How this came to be is a complex mix of politics and bad financial decision making among those in control of the amount of currency that is created each year (Yearly inflation rate)
Now with Nasdaq opening up indexes for the bigger cryptocurrencies
And big investor firms officially announcing that they have some of their portfolios in Bitcoin and Ethereum, the products that are offered on the blockchain is suddenly becoming a legitimate choice for the everyday person as well.
On the blockchain everything is transparent, and the rules of how a financial echo system shall work can be set in stone. Making it impossible for someone to suddenly change the rules.
So once a sustainable system is created and people start using it, that system will live on forever on the blockchain.
The keyword here is sustainable. How do we create something that will do what banks once did for our parents, and that can proceed to do that for generations to come?
The solution. Decentralized finance?
One project that seems to have solved this problem is the Wise Foundation
They started with a fair 50-day token auction, where anyone could reserve WISE tokens that are living on the Ethereum blockchain.
All the collected funds from the auction were then traded for ETH and forever locked up in a liquidity pool for the trading of the Wise token.
Making it the first-ever Ethereum backed cryptocurrency.
The system is set to have a 4% yearly inflation rate, and those who Stake, or agree to lock their WISE tokens for any amount of time, get to share the new WISE tokens created from that 4% inflation rate.
It did not have to be more complicated than that.
Now, this is how WISE will always work, the inflation will never change, and those who choose to stake their coins will get a daily reward sent to their accounts.
On top of that, the Wise Foundation is adding collateral staking. Making it possible to take loans using your staked WISE as the collateral for a loan.
Staking and earning interest while at the same time being able to take a loan with that same capital if ever needed.
And they actually managed to create the system so that WISE will always have a price floor, a minimum amount of ETH that it could ever be valued at.
The hope is not gone for future generations, blockchain will with its transparency and immutability give people a new chance for a sustainable way to do banking.
https://discord.com/invite/keJUb4W
