PFID plays a vital role in the governance of the POFID platform. It can be understood as a decentralized platform asset, however, it also gives relevant rights and obligations of each PFID holder with participation in the governance of the POFID platform in a flexible and accurate way. Below, we will give you a comprehensive understanding of PFID in terms of its functions, economic model, and investment income.
PFID Functions:
- PFID is the only way for participation in POFID Platform Governance:
Ownership of PFID is the gateway to governance authority, including the core technology management, DMW management, risk management, liquidation management committee or even for organizations or individuals in distributed management.
2. Emission Income:
With the role of participating in governance on the POFID platform, as the platform evolves ecologically and the timeline develops, will add a portion of the PFID emission as a reward. This part of the reward for the governance will be part of the PFID economic model’s fixed emission, with the aim of maintaining and encouraging more capable people to participate in the governance of the POFID platform.
3. Default Asset:
In addition, PFID is the default global common asset of the POFID platform. In some cases, when common assets need to be used for consideration among all circulating SSCs, the PFID will play this role, such as the breach of contract penalty mentioned earlier.
4. Issuance Reward
Finally, the core value, PFID holders share the issuance service fee revenue based on their PFID holdings.
Economic Model and Return on Investment of PFID
PFID Token Distribution Plan
In summary, we understand the function of PFID. Let’s take a look at its economic model and return on investment from the aspects of PFID output and distribution.
Total PFID Supply: 10 million
Economic Model: Deflationary, with burn mechanism
Emission Cycle: 20 years
The specific emission distribution mechanism is as follows:
PFID’s Economic Model and Return on Investment
First, let’s understand the source of PFID revenue through this image
In summary, we can see that the main revenue comes from the following:
- Holder Staking Emission: PoS, which accounts for 51% of the total. PFID’s PoS return rate is about 5% per year.
- The benefits of participating in the platform governance are also the benefits of voting.
We know that the governance model of the POFID platform is pure-chain governance. Before participating in the platform governance, you must hold PFID. Anyone who meets the currency holding requirements of the governance can initiate a governance proposal. For example, if A wants to modify or add a consensus on the underlying technology, then first of all, he needs to pledge a certain amount of platform currency PFID according to the requirements of the platform. This part of the income can be divided directly and equally among the platform users participating in A’s proposal, regardless of whether the user votes in favor or against so that the platform users can not only have the enthusiasm for governance but also make the platform governance open, fair and just.
It is worth noting that POFID will be 100% pure on-chain governance. The scope of governance involves the governance of the underlying technology, the DMW contracts governance, risk control governance, and the liquidation committee governance. It is conceivable that this will be a huge governance system and work. Every user who holds platform currency can participate in it and get income.
3. Revenue from the platform service fee
For every DMW contract that initiates a mortgage loan on the chain, the platform will charge one time 8% service fee, and 80% of this service fee, which is 6.4%, will be distributed according to the PoS user’s holding percentage.
It is worth noting that POFID is not a single currency pledge lending platform but a multi-functional technology and governance framework that provides the ability to issue and manage stable cryptocurrencies. This also means that numerous DMW lending contracts can be created according to market demand. As the consensus gradually expands, the early investors will have unlimited income realization.
If you hold PFID:
If you hold PFID, you will first put it in the wallet account of the platform, and then staking to get income, because when you start with this step, all the income of the POFID platform will be relevant to you.
As a PFID investor, you can ignore the huge financial value of creating a DMW contract. You only need to know that whenever a DMW contract is created on the POFID platform, you will get corresponding service fee income according to the percentage of PFID you hold, this income will be directly paid to your account in the form of stable currency SSC on the latest staking payment cycle day. If the loan amount of DMW contract exceeds US $100 million [the data shows that the DeFi project MakerDAO on ETH exceeded $500 million in January 2020], users who hold 1% PFID will directly receive a profit of US $64,000. Assuming the price of each PFID is the US $2, then you will earn the principal of 32,000 PFID at one time, so of course, you will replace it with PFID, and continue with Staking.
In addition to the service fee, we can intuitively understand from the above figure that for each DMW transaction fee and the governance on-chain, will bring a considerable income, and these incomes will be increased by replacing it with PFID to increase the amount of your Staking.
PFID Value Driven:
From the above, we can understand several characteristics of PFID
- Equity Attributes and Incentives: Holding PFID means holding equity of the POFID platform, and can exercise shareholder rights such as supervision, management, change of rules, and rewards.
- Scarcity: The total amount of PFID is fixed without additional issuance, at the same time, there is a deflationary mechanism of burns, which also means that with the continuous development of the platform, the liquidity and demand of PFID will continue to increase, and its value will continue to rise.
- Necessity: PFID has one of the most important roles in the entire chain. However, it is not exaggerating to say that it runs through all the operating links of the entire platform. It is not a digital currency born out of thin air but is backed by practical application value scenarios, and constantly enhances the market demand with the continuous growth of platform users and consensus.
Connect with POFID via official channels:
POFID Website: https://pofid.com/
Twitter: https://twitter.com/pofiddao
Facebook: https://www.facebook.com/pofiddao/
Telegram: https://t.me/pofid
Reddit: https://www.reddit.com/user/pofiddao
Medium: https://medium.com/@pofiddao
YouTube Channel: https://www.youtube.com/channel/UCXD6E6W9pthg-VyQ2rk9YtQ
