What Is BlackHoleDAO (BHO)? Complete Guide Review About BlackHoleDAO .

What Is BlackHoleDAO (BHO)?

BlackHoleDAO is a decentralized asset management protocol based on DAO governance. On the basis of DeFi3.0, a completely new standardized model called “BlackHole DAO Protocol (BHDP)” is constructed. The BHDP burn mechanism resolves the imbalance between high inflation and deflation in the market by referring to the traditional stock market splitting and merging principle. The DAOs credit-based loan service is launched.

BlackHoleDAO Coin Storage Key Points

BHDP Burn Mechanism

In the case that the support rate is equal to 0 when the stock (BHO) in the market reaches a certain amount, the deflation mechanism will be triggered; the interest on Stake will gradually decrease in a certain proportion, and the proportion of stock (BHO) purchased through Bond will gradually decrease, followed by a gradual decrease in the stock (BHO) minted through VC Pool. If the support rate is less than 0, the Stake will stop generating interest; Bond and VC Pool will stop minting new coins; in the meantime, the deflation mechanism will be triggered, starting to burn the inventory flow according to time and proportion until the support rate is greater than 0.

Staking

Staking is essentially a long-term asset growth strategy that creates passive benefits for users, and you can choose staking to obtain staking interest if you get BHO, which is for users who have recognized BlackHoleDAO for a long time. If you are a short-term speculator, of course, you can choose to sell it for the profit you want.

Long-term beneficiaries earn compound interest through Staking. In order not to generate high inflation, the reward rate is freely regulated according to the market, but the compound interest generated by staking will always be tens of times higher than traditional DeFi products like Compound and Aave.

As your BlackHoleDAO shares increase, this will be converted into a declining cost base until it tends to zero. This means that even if the market price of BHO is lower than your initial purchase price, as long as there is a sufficient staking period, your staked BHO should eventually exceed the impact of asset buoyancy and loss as the balance increases. Therefore, for long-term consensus users, this is the best investment subject without risk value.

Bond

Bond acquires BHO by adding the liquidity to the BUSD-BHO without incurring any transaction tax, and has a 5-day lockup period; it is unlocked at one time after 5-day expiration; the BHO acquired through Bond will be freely adjusted according to the inflation and deflation in the market; in the case of inflation, the proportion of BHO purchased through Bond will gradually decrease; in the case of BHO deflation, the proportion of BHO purchased through Bond will gradually increase, thus avoiding the phenomenon of speculators taking profits and selling immediately due to early entry for DeFi1.0.

VC Pool

In the BlackHoleDAO Protocol, the VC Pool can be understood as another way to buy Bonds, except that the VC Pool only accepts valuable vouchers such as unstable tokens, NFTs and liquidity LPs. The tokens, NFTs and liquidity LPs online in the VC Pool are the tokens proposed by each DAOs community that are voted through.

They also call it a “value pool”, since it has the attribute of financial lending; it will develop into a “credit pool” based on DAO in the future. Meanwhile, the VC Pool determines the inflation and deflation of the stock BHO throughout the protocol; when the stock (BHO) is in a state of deflation, the proportion of stocks (BHO) minted by users through the VC Pool will gradually increase;

When the stock (BHO) is in a state of inflation, the proportion of stocks (BHO) minted by users through the VC Pool will gradually decrease. In the case that stocks (BHO) are minted through the VC Pool, 50% of the assets entering the VC Pool will be burned in the liquidity pool. The other 50% will be retained in the pool for future credit loan; the VC Pool is planned to accommodate more than 200 high-quality digital assets.

DAOs Ranking

Those who make a successful donation as the DAOs community on the Donation Pool page will receive a unique community ID to be a DAOs community advocate, able to enjoy the transaction tax pool dividend and expand their own DAO community. If you are a community builder or a leader with the ability to do so, feel free to have a try.

For each DAOs community, we try to calculate the credit value of each through the algorithm, together with a corresponding reward and punishment mechanism. The credit value will be a weighted value according to the following dimensions. The DAOs community with the top-ranking credit value can get additional transaction tax pool dividend and later higher loans. One thing for sure is that we will continue to optimize the calculation rules.

Total value of holding BHO, including BHO and sBHO

VC Pool contribution value, the total value of each token contribution

Number of effective team members (number of all BHO addresses)

Number of token types successfully recommended

Holding time

Treasury

The Treasury in BlackHoleDAO mainly serves as the ground for judging the inflation rate. The treasury assets are mainly derived from the LP composed of Bond and some later supported stablecoins. When the inflation rate supported by the treasury assets is too high, the staking interest, Bond purchase securities proportion and VC Pool minting proportion will all gradually decrease, while the burning proportion will gradually increase, so as to achieve the purpose of free market transactions.

Security:

The treasury contract is protected by 4/5 multiple signatures. In another word, any treasury transaction must be approved by at least 4 signatories. We have 5 in total. Hence, the operation security of treasury assets is protected, preventing the influence of disruptive behaviors by a single perpetrator as any transaction, such as transferring funds in and out, must be authorized by 4 legal persons.