DeFiChain founder Dr. Julian Hosp has put forward a strategic proposal to boost the value of the platform’s native token, DFI, and drive substantial demand of over $1 million.
The proposal, referred to as the DFIP (DeFi Improvement Proposal), revolves around bolstering the utility of DFI while concurrently generating buying pressure. It involves several strategic steps, each meticulously designed to propel the DFI token into higher demand brackets.
Proposal for Emergency DFIP on @defichain:
Want to propose a DFIP to support the $DFI price by adding utility and buying pressure at the same time.
How?
1. Wrap all stakable cryptos available on @bake_io ( $DOT, $SOL, $MATIC, and more that are still coming) and add them to the…— Dr. Julian Hosp (@julianhosp) August 14, 2023
Firstly, Dr. Hosp suggests the wrapping of various stakable cryptocurrencies, such as DOT, SOL, and MATIC, into the DeFiChain decentralized exchange. He noted no extra rewards would be given but the standard 0.2% swap fee. Nonetheless, the founder suggests that the inclusion of these tokens would generate potential demand for DFI by tapping into the extensive user bases of these coins.
Another crucial aspect of the proposal involves staking 90% of prominent cryptocurrencies, such as ETH, DOT, SOL, and MATIC, leading to rewards totaling around $1 million. Half of these rewards would be utilized to purchase and burn DFI tokens, driving up their scarcity and value. The remaining 50% of the rewards would be reinvested into the DEX’s individual pools, incentivizing increased liquidity and Total Value Locked (TVL).
Furthermore, Dr. Hosp’s plan involves seeking a risk-free yield of close to 4% on 90% of backed USDT and USDC through tokenized bonds. Similar to the staking strategy, the generated rewards from this initiative would be used to buy back and burn DFI tokens, contributing to potential price appreciation. While the proposal acknowledges the potential of replicating these strategies for other cryptocurrencies like BTC, it prioritizes maintaining a “zero risk” approach. He asserts that the collective impact of the first three steps would collectively funnel more than $1 million in demand toward the DFI price, all with negligible cost or downside.
