Why Altrucoin Is a Necessary Part of Altruvaults

One of the main things that we get asked about is how Altrucoin and Altruvaults work together. Many holders have been worried that there is a split, and now Altrucoin will somehow become irrelevant or inferior to the Altruvault token. This is not the case, and the team knows that the two tokens will work hand in hand to strengthen each other.

In the first part of this, we will look at how Altrucoin and Altruvault work with each other. Further down, we will look at the benefits of Altrucoin and why people will continue to want to invest in Altrucoin even after the Altruvault token is released.

What is each token?

Altrucoin is a token focused around charitable donations and a Decentralized Financial Lending use case (DeFi Lending). It is currently in the development stage, with governance and staking being released. However, the ultimate use case for it is for use as a token in DeFi lending. This has been the case since the beginning, and can be found on the website, roadmap, and whitepaper for Altrucoin.

Altruvaults is an application meant to bring DeFi features to other tokens. This includes staking, multiple token type redistribution, trustless DeFi lending, and token launching. Altruvault is the native token for the Altruvaults application, with the long term use case being store of value from holding and a base for the Altruvaults application.

How do they interact?

In the first scenario, the manufacturer is going to create a broken product and pump it out to millions of people, wasting time and money. In the second scenario, the manufacturer can create a good, well rounded, tested product that everybody is happy with.

If you tried to take the 20 million broken engines and fix them then create the new version, it would be a clunky and wasteful process. It is incredibly important to be able to work with designs on a scale that is made for changes and agile. Altrucoin works much in the same way. Without Altrucoin, the Altruvaults system would have to roll out massive changes with limited feedback, and constantly make changes on a large scale. Altrucoin is the perfect token to be able to take new features, allow the community to test them, collect feedback and make changes, and ensure that features are viable and worthwhile to token holders.

However, this is where the analogy does fully fit reality. In the above example, the prototype would not have any real use after the manufacturer released the engine. Altrucoin, on the other hand, has two main advantages that extend beyond the release — exclusivity and separate use case.

Benefits of Altrucoin

While an engine prototype might not have a use after the manufactured model is made, Altrucoin has a strong use case outside of anything to do with Altruvaults — DeFi Lending. As mentioned above, Altrucoin and Altruvault tokens have different use cases. This becomes even more apparent when we look at the tokenomics of each coin.

Use cases

The Altruvault token will be used for store of wealth in holding and as the native token of the Altruvaults application. This is also reflected in the tokenomics. Altruvaults is not meant to be used for high frequency trading, but rather to reward long term holders. This is why there are significantly higher fees for transactions. While the Altruvault token is the native token of an application that helps others add DeFi features to their token, the Altruvault token is not meant to be used itself for DeFi Lending.

We believe this is one of the main areas of confusion. On first glance, many holders believe that the Altruvault token will do everything that the Altrucoin token will do and more. While they both play a vital part in the Altruvaults application, they have different use cases.

So why would somebody invest in Altrucoin even after the Altruvault token launches? Two reasons: to be on the cutting edge of technology, and to use a token for DeFi Lending. Have questions? Come join our Telegram and Discord communities and we’re happy to answer them!

The Altruism Protocol is a set of defi tokens built to bring together defi lending, token reflection, charity donations, staking, and decentralized governance.