What is Magnet DAO (MAG)?

by Oct 30, 2022Coins & Tokens0 comments

The protocol for the reserve money has evolved into Magnet DAO (MAG). The DAO offers remarkable returns to token holders by using its protocol-controlled value. In addition, it invests in and nurtures new projects using its treasury reserves.

The objective of Magnet DAO (MAG), unlike first-generation reserve currency protocols, is not only to increase its market cap and treasury through bonding. Instead, Magnet DAO (MAG) transforms the DAO into an on-chain venture fund by investing 10% of bond revenues in premium crypto assets. The DAO will assist in developing initiatives from their inception. The Treasury will hold all tokens purchased by the DAO, generating incomparable value and opportunities for investors.

The refined reserve currency mechanism is at a new level, and that stage is called Magnet DAO (MAG). Building a big enough treasury is crucial for a protocol, but managing that treasury’s portfolio is just as crucial. Building, developing, and investing in early-stage projects—opportunities that are normally unavailable to the ordinary investor—are some of the ways we use the Treasury to produce value. In order to transform our stablecoins into useful assets, we will also investigate ways to produce a risk-free profit from them.

Tokenomics

  • Name: Magnet DAO (MAG)
  • Symbol: MAG
  • Total initial supply: 10,000,000
  • Chain: Avalanche (AVAX)

Distribution

During the community offering, Magnet DAO (MAG) will sell 20% of the initial total diluted supply. To jumpstart our treasury, 40% will be sold during our fair launch. 10% is set aside for marketing and collaborations, 10% is set aside for early liquidity, and 20% is allocated for the team (locked and vested).

What objectives does the project have?

The crew is full of suggestions for how they might improve the process. A few suggestions on protocol design:

  • Implement vesting schedules for bonds, so users may choose to vest their tokens over a longer amount of time and obtain a larger ROI (rather than a 5-day standard)
  • Implement a bonus for diamond hands in staking to motivate
  • Our protocol should incorporate “zapping” liquidity to make bonding LP pairings easier.
  • yield production using our stablecoins. Given the number of stablecoins we’ll have in our treasury, we’ll undoubtedly be looking at the best ways to make money off of these assets.
  • Develop protocols using the Magnet DAO (MAG) as the umbrella. We already have several projects in mind, all of which will work well with our main protocol.
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What is the unique selling point?

A portion of this treasury will be used by Magnet DAO (MAG) to support and foster new businesses as well as to build new protocols. Due to its early investment exposure to initiatives, Magnet DAO (MAG)’s treasury will have unmatched upside potential for quick development. As a result, even if some projects don’t succeed, 90% of the Treasury is still there, providing a floor value for our Token. The projects to be funded and their funding amounts will be decided by the DAO committee. To assure their success, the Magnet DAO (MAG) team will also incubate these initiatives, and our community will aid in their development.

A native DAO tooling interface that will work with Magnet DAO (MAG) is the first protocol to be created. We believe it is crucial to build an easy-to-use user interface that gives all token holders (DAO members) the ability to have an impact if we are to create a governance structure that is as smooth as feasible.

A thorough examination of the idea is only appropriate given that the incubation is a novel, previously unseen key element of Magnet DAO (MAG). The following characteristics of this design are advantageous to magnet owners:

  • A small but crucial amount of exposure to initiatives that have the potential to provide rapid development and wealth creation is provided by a diversified treasury.
  • Access to investments that are generally only available to angel investors and venture capitalists
  • Early access to new protocols, without the time-consuming process of seeking and sorting through tens of thousands of unsuccessful projects. The DAO / core team will be developing these initiatives themselves and assisting in the incubation of ideas that we are passionate about, boosting the likelihood that they will succeed while the investment is still in its infancy.
  • Community network effect: As we create and nurture cutting-edge protocols, our community of token holders will play a crucial part in assisting these initiatives in gaining acceptance, momentum, and adoption. The DAO will also try to collaborate on initiatives that have a lot of synergies. We anticipate that our $MAG token will be crucial in enabling holders to take part in the expansion of future initiatives.
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Staking $MAG

You may earn $MAG passively by staking thanks to auto-compounding. You get sMAG (staked $MAG) in return for staking your $MAG using Magnet DAO (MAG) at a 1:1 ratio. After then, based on the current APY, your sMAG balance will grow automatically every epoch. How Do I Bet on $MAG?

Minting $MAG

By producing MAG, You exchange your cryptocurrency holdings for MAG at a discount. How can I make $MAG?

Paladin Audit

Paladin Security has officially joined Magnet DAO (MAG). Several third-party audits of Magnet DAO (MAG) have also been conducted by unidentified community developers, including members of the Olympians Discord team.

Why do we first require MagnetDAO?

Dollar-pegged stablecoins have grown to be a significant part of the cryptocurrency industry since they are less volatile than tokens like Bitcoin and Ether. Users feel secure when trading with stablecoins since they know their value will remain constant over time. However, this is a misconception. The Federal Reserve and the US government are in charge of the currency. This implies that these stablecoins will lose value if the value of the dollar decreases. By creating $MAG, a freely floatable reserve currency backed by a portfolio of assets, MagnetDAO hopes to remedy this. By concentrating on supply growth rather than price appreciation, $MAG may function as a stable currency, according to MagnetDAO.

FAQs

For getting to know Magnet DAO better and make better decisions regarding Magnet DAO we made a list of FAQs. the answers you are looking for might be one of the ones below. Let’s get to it.

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Is MAG a stablecoin?

$MAG is not a stablecoin, unfortunately. As decentralized algorithmic reserve money, $MAG aims to be the opposite. Because $MAG draws its intrinsic value from fractional government reserves, like the gold standard, it provides consumers with a free-floating value they can always rely on.

What is the point of buying $MAG when it is trading at a premium?

By purchasing and staking $MAG, you are obtaining a portion of the market cap, which is anticipated to remain steady. This is because your staked $MAG balance increases in lockstep with the available supply. As a result, you will be able to obtain a larger share of the market capitalization if you purchase $MAG while it has a low market capitalization. In addition, $MAG is generating wealth outside of only its treasury. We are developing, fostering, and funding initiatives. By investing in $MAG, you are gaining access to the early stages of the development of several cutting-edge protocols in addition to participating in a value-creation mechanism.

What will be $MAG’s intrinsic value in the future

There is no simple solution, although the intrinsic value may be calculated using treasury performance. For instance, if the Treasury can ensure that each $MAG will be backed by 100 DAI, then 100 DAI will represent the inherent worth of each $MAG. A choice may also be made by the DAO. For instance, if the DAO decides to increase the price floor for $MAG, its intrinsic value will also increase. Additionally, $MAG will gain from the projects it initiates, nurtures, and invests in. These initiatives will all help it expand its treasury, and fee streams should influence valuation.

Conclusion

Magnet DAO is creating a group of people devoted to the expansion and creation of new enterprises. Voting by investors will determine which investments the innovation fund should make; this is good for both investors and projects. Following the road map, the project did well and achieved incredible progress. They committed to creating other protocols using the MAG token in the long run. Let’s see how it turns out.

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