The month of October saw the introduction of Karma Finance’s brand personality and message, ALP round 2, the KFITO token running on Consensus Finance’s protocols as its first pilot, and our first press release.
We also conducted a poll to find out whether the community wants to respond to the opportunity that the World Economic Forum’s ‘Great Reset’ efforts (backed by the United Nations and major world governments) have presented in the way of Karma Finance possibly pivoting to “UBI for DeFi”.
Resolving the Crypto Project Paradox
Crypto currently suffers from a dilemma: genuine projects (i.e., those that are not a scam on some level) are extremely difficult to get off of the ground. The unfortunate reality in the world of crypto is that, oftentimes, resources such as developers and advisors do not wish to get involved with a project unless they are able to extract an outsized share from it. This creates an oversupply of unethical projects and, unfortunately, a crypto community that generally desires these types of projects to exist so that they can benefit financially from them.
Platforms like Uniswap are useful to get started, but without an initial supply of liquidity for the project (provided by a pre-sale or private token sale) a project is unable to self-fund.
This paradox is why we introduced the ‘Angel Liquidity Provider’ concept in the beginning. Although this route was nearly unanimously agreed to by the community, this method presented its own problems and relied on the ALPs not seeking to harm the project by dumping tokens.
We still have yet to think of an alternative which would have helped the project more than what was agreed to (without ‘kicking the can down the road’ with 1-year ALP token locks, for example, which would have made the problem much larger).
Regardless, we needed to move the project forward in a way that actually helps the goals of the project rather than satisfy market needs (where the goals of the project is not a concern, generally). The ITO token on Consensus Finance helps us do just that. The Consensus Finance protocol will be used alongside other exchanges as an additional funding source for Karma Finance.
Like a crypto adding additional exchanges, the KFITO token will allow an additional method for people interested in participating in the project. Most importantly, it’s the option that can fund Karma Finance development at this stage.
More information on how it works can be found here, and information on how to vote for Karma Finance will be coming shortly.
Moving Forward with UBI Over DeFi
Thanks to everyone who participated in the vote for Karma Finance’s future direction. We are pleased to note that we are pivoting to “UBI over DeFi”. This will allow us more opportunities to bring our message to the masses, especially going into 2021.
Universal Basic Income (UBI) will be one of the primary goals of governments around the world from next year, along with their Central Bank Digital Currency (CBDC) efforts. Karma Finance is uniquely positioned to improve upon the basic UBI model with a productive element attached that non-governmental entities can more easily pursue.
As the means of production become far more digitized in new ‘stakeholder capitalism’ models planned for the future, we need to ensure that regular people are incentivized to produce. The Karma Finance UBI model will represent the ‘capitalism’ aspect of ‘stakeholder capitalism’.
Karma Finance’s implementation of UBI-over-DeFi will incorporate a unique incentive mechanism for participants to add value to the protocol before extracting it. This ensures a balanced economic system that seeks to improve the lives of the most productive members of the system, and society as a whole.
Over the next few weeks, the Karma Finance website and protocol will be updated to reflect these changes.
Angel Liquidity Provider (ALP-1) Rewards
All KFI rewards have been distributed to Angel Liquidity Providers for the ALP-2 event.
Our current marketing efforts will resume once the new UBI-over-DeFi concept is fleshed out. This will include our second press release which will introduce the new concept to a wider audience than our first release.
Thanks.. .and stay tuned!