There is a quiet revolution taking place in the crowdfunding sector. Similarly, to the generations of blockchain development, there are now newer and more robust options available to companies seeking to host crowdfunding events. Platforms such as MAZE introduces various protective protocols that help ensure liquidity in projects and sure up investor confidence in ways that were previously unimaginable.
To accomplish these tasks, these next-generation platforms introduce a variety of new systems to the sector. At the core of these new-era platforms reside team token lockup protocols. These newly developed systems provide valuable features to investors. Specifically, they ensure investor access to early sales opportunities. Here’s how team lockup contracts work and why they are gaining in popularity.
Team Token Lockup
Team token lockups were first made popular by the Ethereum-based platforms LID and DISTX. These contracts keep team tokens locked in smart contracts for a predetermined period to ensure investors get a fair chance at the market. They provide users with more transparency and security.
The team token concept originated after multiple platforms issued their team tokens prior to the issuance of investor tokens. These issuances caused investors to lose valuable ROIs because the markets supply, and demand percentage was skewed. Additionally, it allowed team members to dump their tokens on users and artificially drive the price of the token up for a short period of time.
Of course, shortly after the team liquidates its assets, the price of the token tanks. This situation is way too common in the market today because until recently, investors had no other alternative. Team lockups prevent this scenario before it occurs.
A Better Alternative
While platforms like LID pioneered this strategy, their reliance on the Ethereum blockchain leaves them susceptible to a variety of risks. For example, since most DeFi platforms utilize ERC-20 tokens the network can experience delays due to congestion. Ethereum is a Proof-of-Work network that utilizes a consensus mechanism like Bitcoins. Just like Bitcoin, this network can see huge fee spikes and delays when there is a major influx in users.
These issues have been a concern for Ethereum users for years. In 2017, the network nearly screeched to a halt due to congestion issues. At that time, the popular collectible game CryptoKitties was just released to heavy fan fair. This release, coupled with an influx of new investors, overloaded the network’s capabilities. Since then, Ethereum has worked on some ways to remedy these issues but none is full proof.
A Better Option
MAZE introduces a better option to the market in terms of functionality and scalability. MAZE was built from the ground up to eliminate the issues facing LID and DISTX. Keenly, the company seeks to provide investors with more alternatives in the market. A quick glimpse reveals why MAZE is so special.
For one, the platform is the world’s first TRC-20 standard crowdfunding protocol. TRC-20 is the token standard for TRON’s third generation blockchain. TRON’s blockchain originated as a hard fork from Ethereum but since then, it has managed to develop its own ecosystem that far exceeds Ethereum in terms of scalability and functionality.
MAZE serves another important purpose in the market at this time. It combats the growing centralization of the crowdfunding sector. Ethereum-based platforms dominate the space. MAZE takes the road less traveled to introduce a more efficient system. This approach ensures that if the Ethereum network goes down, DeFi remains a viable option for users.
Simplifies Token Generation
MAZE makes it easy for anyone to create a token and host a crowdfunding campaign. The developers behind this unique concept sought to remove all the technical barriers associated with ICOs. The platform introduces an intuitive interface that requires no technical understanding to operate. Notably, MAZE simplifies the most complex process associated with crowdfunding.
Another amazing option available to investors is the ability to conduct different crowdfunding strategies. The platform introduces both a Charity Funding Platform and Community Betting System. Users can raise funds for causes that are near and dear to them using the Charity fundraising features. If you are the gambling type, you can also set up betting pools to add some excitement to your investment strategy.
Stake it Out
In line with MAZE’s goal to increase investor ROIs, the platform offers various staking mechanisms. Users can earn a passive income staking their MAZE tokens to any of the platform’s liquidity pools. The staking process is simple and can be done directly from your interface. Notably, MAZE provides some of the highest rewards to stakers available today.
Liquidity pools are smart contracts that reside on a DeFi network. These pools serve multiple purposes depending on the protocol. The first form of staking crypto involved locking your crypto up in a network wallet to secure Proof-of-Stake networks. Users would stake their crypto in exchange for rewards.
Next, developers introduced liquidity staking functions. This process is like PoS staking but the system is different. In a liquidity staking scenario, you lend out funding to a project pool to sure up its liquidity. Lastly, there is yield farming staking. This scenario is the same as liquidity staking with the main difference being that you stake your crypto in a liquidity pool that other users can borrow against.
Those who want to take advantage of MAZE’s advancements can do so via the company’s crowdsale. The presale started on November 6, 2020 at 6 pm UTC. Investors will need to utilize TRX to participate in this event. You can also enjoy serious discounts for presale purchases at this time.
MAZE Ups the Ante
The introduction of MAZE to the market raises the bar in terms of functionality and efficiency. Just off the fact that MAZE is the world’s first TRC-20 based crowdfunding platform, you can expect to see this protocol gain momentum quickly. For now, the market is set for a serious shake-up once MAZE goes live in the coming days.
Originally published at https://cryptopress.news on November 9, 2020.