The Federal Reserve is the central banking system of the United States of America. Created on December 23, 1913 (with the enactment of the Federal Reserve Act), the desire for central control of the monetary system to alleviate financial crises was pursued after the 1907 Bankers’ Panic.
In 1933, President Roosevelt abandoned the Gold standard, and the rest is history. To put this into perspective, the US Dollar has lost well over 95% of its purchasing power since 1870. The last time the US Dollar was worth an actual dollar happened to be in 1933 – just before the Gold standard was reversed.
During a crucial period in history, gold was the de-facto global reserve and the underlying asset that gave us trust in sovereign currency or paper money. President Richard Nixon “unpegged” the US Dollar from gold, effectively bringing the gold standard to an end in 1971. Prior to, and since that pivotal decision was made, various political and economic events left the US Dollar the new global reserve currency, albeit backed by nothing but trust.
The decentralization of money is now a reality with the emerging technology of blockchain. Never before have we had this much freedom and the potential to take back our finances as we simultaneously desert the intermediaries that rob us of payments and free will to regain control of our financial independence.
As we enter a new era of unlimited money-printing by governments worldwide, there seems to be no solution in sight for fiat currencies’ devaluing. Thankfully, the world of DeFi (decentralized finance) has various solutions available to those looking for viable options.
We have seen some innovative projects being constructed to combat the depreciation of fiat currencies; unfortunately, some are just cookie-cutters with a few tweaks, while others go up in flames as power corrupts from within. But what if instead of being pegged to fiat currencies (along with other “assets”) like the stablecoin USDT (Tether), a “valuecoin” that’s pegged to real assets were available to the masses to create the world’s first non-depreciating currency?
A stablecoin is a class of cryptocurrencies that attempts to offer price stability and are backed by a reserve asset. Unlike DAI, the importance of not being pegged to a stablecoin can’t be understated as history has proven that the value of fiat currencies continually decreases and never increases.
Built on Layer-2 protocols, MahaDAO is the first DAO to implement its value-coin across multiple layer-2 blockchains and leverage all of its features.
MakerDAO implements a two-token infrastructure, namely the Maker Token and DAI. Maker proved without a doubt that it was possible to create decentralized stablecoins that are algorithmic and backed by crypto collaterals. Imagine financial freedom, without the volatility. As a value-stable currency, wealth creation is not only possible – it’s possible today, with the MahaDAO platform.
The ARTH ecosystem builds upon MakerDAO’s DAI concept to pioneer new mechanisms to produce a revolutionary token that’s both value-stable and a raw measure of an asset’s buying power. ARTH is a decentralized algorithmic value-stablecoin that aims to maintain (and in some cases, even appreciate) the purchasing power or value of the token – regardless of the direction the market moves at any given time.
ARTH becomes inflation-proof using a unique method of measuring an asset’s buying power that’s not tied to any fiat currencies. This is feasible since it’s backed by stable collaterals, which are complete hedges of one other. If one asset depreciates in purchasing power, the other asset, in turn, appreciates – keeping the token’s net purchasing power stable.
The ARTH token was designed to create a timeless value currency. One of the features that will separate the ARTH coin from the other stablecoins and MahaDAO from the other DAOs (Decentralized Autonomous Organization) is the Global Measurement Unit (GMU).
The Global Measurement Unit is responsible for keeping the ARTH token resistant to depreciation as the GMU represents a basket of assets carefully selected with adequate weights to present a sufficiently-hedged strategy against all economic factors and unexpected market movements.
The basket consists of the key currencies and main global commodities like gold as it’s a typical example of a haven. The IMF’s SDR, for example, only consists of main fiat currencies and is not protected from political interference or influence. At the same time, the GMU will include some of the risker assets in the form of Bitcoin. Bitcoin is the ideal selection for a riskier asset since its price essentially represents spillovers from world stock exchanges.
Global Measurement Unit (GMU) consists of several assets – some of them are traditional, well known financial assets and some are new age, digital financial assets. ARTH is backed by:
- 80% Fiat
- 15% Gold
- 5% Bitcoin
If the value of fiat currencies decreases; the value of gold and Bitcoin increases. If the value of gold and Bitcoin decreases; fiat currencies increase. This balancing mechanism allows for the value-stabilization of the asset.
Another clear-cut advantage is the ability to change the initial basket of currencies, which is key to a sustainable ecosystem that can quickly cut ties with underperforming assets in exchange for those that are performing optimally.
The MAHA Token
Much like the governance system in MakerDAO (which is powered by the MAKER token), with MahaDAO, the ARTH ecosystem is powered by the MAHA token.
- MAHA is a governance and utility token that regulates the ARTH value-coin
- Community members use MAHA to vote on critical aspects of the ecosystem to collectively manage the parameters that keep ARTH stable and in check
- The primary responsibility of all MAHA token holders is to ensure the stability of the ARTH value-coin
A total of 10 million MAHA tokens will be minted at genesis, becoming accessible over the course of 10 years. The initial allocation is as follows:
- 70% to MahaDAO community members: 7,000,000 MAHA
- 15% to private sale investors: 1,500,000 MAHA
- 7% to team members and future employees: 700,000 MAHA
- 5% to seed investors: 500,000 MAHA
- 3% to advisors: 300,000 MAHA
At the end of the fourth year, there is a perpetual inflation rate of 2% or 200,000 MAHA tokens per year. Active community members who consistently participate and contribute to the MahaDAO ecosystem are favorably rewarded.
MAHA Allocation At Genesis
MAHA Community Treasury Amount
MAHA 10-Year Release Schedule
Liquidity Farming – Earn interest on digital assets from the MahaDAO Liquidity Farming Program. This program follows a curved distribution model of rewards in MAHA, which means the early farmers reap the most significant rewards.
Staking MAHA Token – Staking helps incentivize early purchasers of the MAHA tokens to lock and keep their tokens out of circulation. Equipped with two staking programs with the Ferrum Network: $MAHA token staking and Uniswap LP staking is available for additional profit-inputs.
Governance Portal – Powered & governed by the people, MahaDAO delegates all the decision making to the community. Governance portals, forums, & the power of social discourse are a few democratic frameworks put to use to ensure the growth and adoption of MahaDAO.
The ARTH Vault – Generates ARTH tokens by locking in collaterals and minting new ARTH tokens against them in the form of debt; and releases collaterals when this debt is paid back, thereby burning the ARTH tokens. The vault will facilitate the buying and selling of underlying collaterals in various market scenarios to maintain the ARTH token’s net purchasing power.
The main purpose of the ARTH vault is two-fold:
- Ensure that the buying power of the minted ARTH tokens never goes below a certain point.
- Employ strategies to enable the vault to increase the net buying power by locking in greater
collaterals as the market fluctuates.
Meet the Team
The team assembled by MahaDAO is impressive. Armed with a roster jam-packed with experience, talent, and versatility, MahaDAO looks destined to not only succeed but to redefine the stablecoin landscape in the coming years.
Steven Enamakel – Tech & Founder
A serial entrepreneur, Steven had founded Vezures in 2018, a blockchain development company focused on creating private/public blockchains on platforms like Ethereum, EOS, Hyperledger, Fabric, etc. Steven is also VP of Products and Blockchain for Intellibuzz, a Leader in Digital Transformation, Information & TeleCommunications Tech, B2B Cost Optimisation, & blockchain technology.
Pranay Sanghavi – Business & Founder
Pranay is the Founder and CEO of Intellibuzz, a group of companies the first one of which was founded by him in the year 2000 while still at college. Having studied at the Stanford Graduate School of Business, Pranay’s experience includes a long list of impressive companies that he has previously consulted, some of which include the likes of AT&T, AOL, British Telecom, FedEx, Marriott, among others. He is also on the advisory board of multiple startups.
Gafoor Khan – Marketing
Gafoor is a new-age Growth Marketeer with an abundance of experience in building startups & crypto projects from scratch & growing them to a seemingly large scale. Coming from a tech-savvy background that includes prior experience in programming enables Gafoor to be technically sound and embrace new-age technologies, like Blockchain. Gafoor is currently leading the Marketing team at MahaDAO.
Harish Suthi – Investor & Community Relations
Harish has extensive experience as an analyst for multiple companies while also have been a researcher for BBC. Harish holds a Master’s degree in Science, Technology & Society from UCL and a Bachelor’s degree in management from the Alliance Manchester Business School.
As layer-2 protocols become increasingly utilized throughout the space, MahaDAO is already paving the way for other DeFi products to push the limits of this cutting-edge technology. With plans that include an average transaction last less than three seconds, eliminating gas fees with the use of meta-transactions and an impressive UX that is both easy-to-use and very easy on the eyes, MahaDAO appears to be a DAO that drastically improved on nearly all the critical issues of its predecessors.
With the added benefit of interoperability across multiple blockchains, MahaDAO looks poised to be a long-term contender in the DeFi space and perhaps one of the clear-cut favorites to become the next trailblazer in the next evolution of non-depreciating digital currencies.
The Daily Chain
*Disclaimer – MahaDAO is our Media Partner, and this content is made possible with their support. The above article does not represent financial, investment, or trading advice, and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.