3 Minutes to Understand the Next Generation of Defi — the Tokenomics of BEST
Since Nakamoto pegged PoW to mining, hashrate has become the hard currency in the blockchain world. Users with hashrate have a say and the right to enjoy PoW income, which is the reason why many people flock to it. Bitcoin’s hashrate exceeded 1T for the first time in May 2011 and reached 197 EH/S by May 2021. Ethereum’s hashrate also increased from 150T in early 2020 to 595 TH/S in May 2021.
The substantial growth of hashrate confirms the progress made by cryptocurrency which once was favored by a small number of people and now is embraced by the majority. This is also a process in which the mining becomes less popualr. With the continuous expansion of hashrate total volume, the income per unit of hashrate is declining. Miners must form a mining pool to make the income curve smooth. With the continuous increase of mining threshold, it is becoming more difficult for ordinary people to enjoy stable mining income.
Behind the expansion of bitcoin’s hashrate is the relentless encirclement and suppression of individual miners.
One of the important characteristics of cryptocurrency is decentralization. Is there a way to decentralize, so that ordinary users can enjoy the mining income during both the bull and bear market in a simple and stable way?
The answer is yes. Even new miners no longer need to choose and purchase mining machines by themselves, neither do they need to bear the high-risk for low-income of cloud hashrate. Through the hashrate token, individual users can avoid all kinds of pitfalls in the participation of mining. Bitcoin and Ethereum Standard Token (“BEST”) is a new generation of hashrate token. It adds Defi to the traditional hashrate token, so that more users can participate in the mining industry.
BEST is issued by BESToken Mining. It anchors real Bitcoin mining hashrate and Ethereum mining hashrate. Holding and staking BEST can continuously obtain BTC mining income and ETH mining income. Users can provide liquidity to the market and obtain governance token MUSK through staking BEST. Everyone can easily enjoy the income generated by hashrate + DeFi mining. BEST has not only successfully obtained investments from AU21, Infinity Labs, Hotbit Labs, Oasis Capital, 7 O’Clock Foundation, Crypto Venture Capital, PolkaFund, 4SV, Bondly Finance, KickPad, Red Block Chain and other investors, but also won the favor of the community. For example, the IDO on DuckDAO was snapped up in 30 seconds. The reason that BEST can attract such heated attention and won the favor of capital and the community lies in its unique tokenomics.
Economic Efficiency + Governance Strengthening, BEST’s “Dual-Core” Tokenomics.
BEST adopts the mode “Dual-Coin”, “Dual-Core” and “Dual-Thread”as its underlying tokenomics, to ensure that the overall operation of the BEST system can achieve both high efficiency and stability, and is more user-friendly. The key to the “Dual-Core”model is the BEST hashrate token and the MUSK governance token. By holding and staking BEST, users can not only obtain BTC and ETH as mining awards, but also obtain the governance token MUSK. It means users can obtain three different tokens through BEST, which is equivalent to three times the return rate of the same asset.
BEST integrates the mining right of high-quality cryptocurrency assets and mining capacity into its token “BEST”. Holding BEST is equivalent to holding mining capacity. Users don’t need to consider complex factors such as mine field, platform, cost, operation and maintenance. They only need to stake BEST on the official website DAPP or increase the liquidity of the corresponding trading pairs in the DEXs, then they can continuously obtain the mining incomes.
It is the trend of the crypto mining industry to transform hashrate into a more secure and liquid decentralized token through Defi. The mining industry is more technology-intensive and capital-intensive today, therefore the trend mentioned above is more suitable for user participation, because it solved the shortcomings of the traditional cloud hashrate. With the development of BEST ecosystem, holding BEST will get more mining rights of high-quality encrypted assets.
Users can obtain multiple benefits through the “BEST +MUSK Dual-Coin” mechanism
The total amount of BEST is 5 million, and the initial circulation is 180,000, accounting for only 3.6% of the total amount. The total amount will rise with the increase of the mining machines managed by the team. Each BEST is equal to 0.01t/s hashrate BTC and 0.03m/s hashrate ETH. BEST’s mining hashrate is provided by BESToken Mining. BESToken Mining has mine fields in Inner Mongolia, Xinjiang and Sichuan, and has signed cooperation contracts with local power plants. Users do not need to worry about power sources and compliance issues. BEST also cooperates with F2pool. Its machine has entered F2pool for mining. At present, F2pool is a world-famous bitcoin and Ethereum mining pool with huge hashrate, which can provide users with stable and computable expected revenue curve.
BEST will deduct 2.5% BTC and 2% ETH as transaction fee according to F2pool’s standard, and then distribute the remaining income according to the ratio of 7:2:1 at 0:00 (SGT) every day. 70% will be distributed as mining reward to BEST stakers and LP, 20% to repurchase MUSK and burn them, and the remaining 10% as depreciation rate for mining machinery maintenance or renewal.
The number of BEST circulating in the market will be counted by day, and the BTC and ETH will be dropped into the mining pool according to hashrate. After deducting the electricity charges and some operation and maintenance costs, the remaining income will be dropped and the smart contract will distribute the income to the beneficiaries, that is, the users who stake BEST on the official website. The whole process is completely open and transparent, and users do not need to conduct cumbersome operation. Staking is mining. Note: users need to bind their own wallet address (BSC) before staking BEST.
The total number of MUSK is fixed at 10 million. Its releasing model adopts the deflation tokenomics. The initial output is 30000 / day, which will be reduced by 13% every 30 days until all 10 million MUSKs are produced. The only way to generate MUSK is to continuously provide liquidity for trading pairs as a liquidity provider LP. In the current tokenomics, 75% of the daily output will be allocated to the LP of BEST-BUSD trading pair, and 25% to the LP of MUSK-BUSD trading pair.
Users with MUSK have the right to participate in the governance of BEST ecosystem. Besides, the team will also buy back MUSK to support its strong price. 20% of the mining income of BEST will be used to repurchase and burn MUSK. With the continuous growth of the ecosystem, part of the ecosystem income will also be used to repurchase MUSK, to achieve the linear increase of MUSK token value.
Users with MUSK can also initiate governance proposals and vote. After the team deploys the smart contract, the token generated will be temporarily stored in the funding pool and gradually distributed to LP through liquidity mining. In addition, the official team will also participate in the LP process and provide MUSK with a value base through repurchase, lending and derivatives. After achieving cooperation with lending platform and other derivative platforms in the future, the team will return the income generated by this way to LP.
The “BEST+MUSK Dual-Coin” tokenomics will meet the needs of majority blockchain users. For new users who want to enjoy mining income, BEST can provide them with stable daily income through a simple “holding-staking-benefit” process, without demanding any experience in traditional mining machine. The stable income can be further improved by staking MUSK. Compared with users who purchase cloud hashrate from a third-party website (such as NiceHash), BEST provides a more convenient, secure and decentralized way of cloud hashrate. To sum up, Defi + Hashrate token provide a broader application scenario for BEST.
Summary
With the strong bull market atmosphere in the cryptocurrency market in 2021, more and more users participate in the market. The more users are attracted, the more the project can expand its own ecology and form a benign cycle. Through the deep cooperation with F2pool, BEST not only realizing the anchoring with real hashrate, but also introduces other hashrate token through the F2pool in the future, which will expand the BEST application scenario and promote price increase. BEST can not only enjoy the price increase brought by the increase of mining income, but also improve the price increase expectation through liquidity mining, etc. The price of hashrate token BTCST has increased over 125 times. Compared with BTCST, BEST adds the anchoring to ETH hashrate, and is accessible on BSC chain. In the future, more assets will be anchored via F2pool.
Looking back on the blockchain market in 2014, Matthew Effect still exists.
The jaw-dropping increase of Dogecoin, Shibacoin has shocked people both inside and outside the blockchain industry. One of the features of the bull market in the middle and late period is to speculate on worthless tokens. If investors want to win in both the bull and bear market, those who has experienced a complete market cycle will invest BTC, ETH and other cryptocurrencies with sufficient value recognition. Few people who have experienced the thousands income return of the glorious 2014 and 2017 can survive to 2021. BEST is pegged to BTC and ETH through hashrate. Even in bear market, it can provide motivation for long-term holding and stable income for its holders, let alone the “ Davis Double Play “ of price increase and income increase in bull market. It is hoped that BEST, as a concept project of “Mining + DeFi + NFT”, will push hashrate token to a new height. We believe that the BEST hashrate token will ride the wind and waves in the field of DeFi, and forge ahead!
