Inflation has become a global economic challenge. Interestingly, Bitcoin halving has proved time and again that as the inflation lowers, the intrinsic value of a BTC increases. With this aspect in mind, give Adventure Token (TWA) some thought. Adventure Token is a deflationary community token that comes with no ability to mint new tokens and follows a token burn model.
Every time an Adventure Token transaction occurs, 1% of the total transaction value burns automatically. What this means is with every buy, sell, or transfer, TWA supply will reduce and TWA will become scarcer. Moreover, holding TWA opens more reward earning opportunities.
In an exclusive interview with Altcoin Buzz, Adrian Woodward, Founder Adventure Token revealed some of the interesting aspects about the Adventure Token and the Luna Fund.
ACB: Can you please explain the tokenomics? It seems pretty interesting.
Adrian: We have created a rewards chain, that all begins with TWA Token which is deflationary in nature, 1% of all transactional value is burnt with each transaction. Next, the holder will add their TWA to Uniswap to create a TWA LP token and start to derive rewards for trades on Uniswap. Following this, the holder can diversify their value into the Luna Fund and release further rewards in the form of trading fees in the balancer pool. Then further again, the holder can add the Luna Fund token to the yield farm and gain more rewards in the hundreds of percentage points, all whilst still simultaneously gaining rewards from the previous steps. All of this compounds the rewards in the rewards chain.
We have also radically reduced the amount of TWA tokens that will ever exist. However, er started off with 101 Million but realized early on we did not need so many to achieve our goals.
We have already burnt 65 million-plus and have committed to burning a further 30 million locked tokens once released from the contract in November 2022, these are Burn Events.
So now the only tokens that will ever exist are those in circulation at 5.9 million, which has already started burning but with the 1% burn mechanism.
No more tokens can ever exist.
ACB: What is Adventure Token and how is its deflationary model different from the rest of the cryptocurrencies?
Adrian: Adventure Token is the emblem of the project; it is the binding token between ETFs. We strive to create custom ETFs that expose users to the best of DeFi. Our token will be prominently featured in our products by the inclusion of TWA LPs (TWA/ETH) in our signature funds that bring volume to the project which bootstraps the funds, all with the advantage of burn mechanism constantly reducing the availability of TWA tokens.
ACB: Does holding Adventure Token offer any benefits to the holder?
Adrian: Holding TWA is just one of the ways users can expect benefits from the protocol. We have created a set of incentives for holders to join our first ETF Fund, the Luna Fund, and earn more TWA while getting exposure to the best performing other tokens in the DeFi space.
ACB: How does its liquidity and yield farming provide multiple returns on the investment?
Adrian: As mentioned above, by joining our fund’s users will be able to earn a bonus in TWA in addition to ETF Fund rewards from the Uniswap pool and balancer trading fees, natural growth of the other assets, and the deflationary nature of the TWA token also. As a nice little bonus, you also earn Balancer Tokens too, when not yield farming.
ACB: What is Adventure Luna Fund?
Adrian: The Adventure Luna Fund is our first ETF Fund. We wanted to select a list of tokens that fill different segments and are bound to perform well in the coming market cycle. We have carefully selected these tokens to help diversify new users into the DeFi space. Other Funds are currently under development and these will give arbitrageurs the opportunity to profit between our EFT Funds, as the TWA LP token exists in them all. This will benefit those who have added TWA LP to the Funds and provided liquidity in the form of fee rewards.
The Luna Fund consists of TWA LPs, Ethereum, Bitcoin, Uniswap, and Link
We are working with Twitter and YouTube Influencers to help create their own funds, this allows their communities to join funds collectively and gain from trading in those funds in the form of fee rewards. All these funds will link via the TWA token as it will be ubiquitous in them all. This creates an eco-system that is greater than the sum of its parts.
ACB: What did you choose Balancer Protocol?
Adrian: Balancer offers the most diverse set of tools for creating pools from all the competitors in the space, with the addition of smart pools we have even more control over what we can achieve with our pools. We want to take the protocol to its limit in order to get the most efficient returns compared to other pools currently available.
In the last 30 days, the TWA price is up by over 17%. At the time of press, the TWA token is trading a little over $0.194.