The Altrucoin Ecosystem
The Altrucoin Ecosystem is the heart and soul of the Altrucoin project. It consists of several parts that all work together: bonding, treasury, Altrucoin vault, platform vaults, platform presales, and platform referrals. This page will discuss how the ecosystem works together. For more information about the benefits and uses of each part of the ecosystem, please visit the page for that part.
The pieces of the platform that have decentralized onboarding allow projects to add the relevant service to their project automatically. Rather than the Altrucoin team having to meet with the project, collect requirements, and manually create the products, decentralized onboarding handles this through the platform. Projects will be able to apply to create a vault, start a presale, or join the referral program. As part of the application, they will need to provide necessary links and documentation to meet the minimum standards for each product. After these are verified, the project will pay the associated fee and will be able to get started!
Decentralized onboarding will allow Altrucoin to bring in projects that previously would have to be turned away. As the number of projects on the Altrucoin platform grows, so too do the benefits to $ALTRU holders!
Platform Vault Fees
Each vault on the Altrucoin platform has platform fees that are charged each time somebody enters or exits the vaults. As more projects join and more users stake, more platform fees are collected and sent to the bonding mechanism automatically. You can read more about the user and project benefits of vaults here.
Platform Presale Fees
Each presale and private sale hosted on the Altrucoin platform generates a platform fee, which is a percentage of the amount raised. These fees are collected and sent to the bonding mechanism automatically. You can read more about the user and project benefits of presales here.
Referral System Platform Fees
As projects join our referral program, they gain access to an incredible amount of useful information about how their users share the project, how successful shilling contests are, and insight into how effective influencers are. In return, there is a small platform fee. These fees are collected and sent to the bonding system automatically. You can read more about the user and project benefits of the referral system here.
The bonding system is the central hub of the Altrucoin Ecosystem. The APY portion of fees from vaults, presales, referrals, and bonding purchases all go through this mechanism. You can read more about the benefits of bonded tokens here.
Bonded Token Purchases
Users can buy $ALTRU with BUSD, USDT, or $ALTRU-BNB LP tokens. These tokens are sent to the treasury, where they can add to the price floor of Altrucoin, add to the liquidity, or be used in the company investment fund.
As the purchase happens, two sets of tokens are sent out. First, the $ALTRU that the user purchased is automatically staked for them in the vault for 30 days. Next, the same amount of $ALTRU is airdropped into the vault as rewards for current stakers, increasing the APY.
Any BUSD or USDT from the decentralized onboarding fees is used to purchase Altrucoin, which is held on the bonding contract for the next purchase. In this way, the tokens are sent to the vault as rewards to Altrucoin stakers, and simultaneously prevent over-minting. The 500,000 $ALTRU tokens from the initial bonding supply act as the first tokens on the contract to be used.
The treasury is the primary way that the project as a whole is able to benefit from the products and services it provides. The treasury system distributes the funds sent by the bonding mechanism to the price floor, company investment fund, and liquidity.
One of the major risks that comes with cryptocurrency is the price volatility. Every token is affected by factors outside their control. Sometimes these factors can raise the value of the token, but sometimes they can negatively impact the price. The price floor helps to mitigate these risks through backing all Altrucoin, and providing a buyback mechanism in case the price falls too low.
There are two parts to this: the token backing, and the price floor. The token backing is the collection of stablecoins that are not currently being used in the company investment fund or liquidity. This collection represents the total number of tokens that can back the price of the token, increasing holder confidence and price stability.
The price floor, on the other hand, is the number of tokens purely dedicated to buyback if necessary. This is also a collection of stablecoins that will continually grow over time, whose only purpose is to buy Altrucoin if it dips below the price floor. If the price were ever to fall below the price floor, the tokens in this section would continue to buy and burn $ALTRU until the price increases past the price floor. Because of this, holders can be confident that Altrucoin will never fall below the minimum value, which is constantly increasing over the life of the project.
But what if there is a run on the price floor?
One worry that holders might have is if all of the funds in the price floor are used up. In this case, wouldn’t the token price fall below the price floor?
The Altrucoin Ecosystem addresses this through burning. As people sell their tokens, reflections are sent to the vault, increasing rewards for holders who remain in the vault. As the price floor buyback kicks in, more $ALTRU is purchased automatically and burned, which decreases the circulating supply of the token and raises the price. This system ensures that as more people sell, it becomes more and more beneficial to hold and to remain staked in the vault, acting as a balancing force.
Company Investment Fund
The company investment fund is a store of funds that will be used for investment in the future to further returns for the company and for holders. Further details about the fund and how it will be used will be released in the future.
As treasury funds increase, more funds get added to the liquidity pool for Altrucoin. Increased liquidity contributes to price stability. As Altrucoin moves towards decentralized lending, and especially acting as the primary collateral within decentralized lending, price stability becomes more important. As the project grows, the treasury and liquidity will also grow, continually making the token more stable and safe.
The Altrucoin vault is the primary method of direct increase in value for Altrucoin holders. While the price will raise through other methods, the vault provides additional tokens to stakers through vault rewards, measured in Annual Percentage Yield (APY). You can learn more about staking here.
The vault receives $ALTRU from the bonding mechanism from all the methods of rewards and purchases. These rewards get distributed to users who are staked in the vault at the time of distribution, proportional to the amount of the pool they hold.
As users eventually unstake tokens and sell, the sell fee provides more tokens to go through the vault as rewards again. This setup gives a constant stream of rewards for users who are staked in the Altrucoin vault. As DeFi lending is introduced, the rewards it generates will also be added to the vault to increase APY.