Last updated 4 months ago
There is currently no token on Cardano blockchain that has been designed to have its price only go up.
Token whose holders would receive Ada rewards via current Ada staking and voting reward mechanism
This is the total amount allocated to AdaHold: Decentralized Price-Can-Only-Go-Up Token, Solution For TRUE Ada Hodlers - Smart Contract. 4 out of 4 milestones are completed.
1/4
Prototype
Cost: ₳ 25,000
Delivery: Month 1 - Apr 2024
2/4
Alpha version
Cost: ₳ 25,000
Delivery: Month 2 - May 2024
3/4
Beta version
Cost: ₳ 25,000
Delivery: Month 3 - Jun 2024
4/4
Release candidate
Cost: ₳ 24,700
Delivery: Month 4 - Jul 2024
NB: Monthly reporting was deprecated from January 2024 and replaced fully by the Milestones Program framework. Learn more here
Tetiana Stashenko
Our team will make this token! The ADA Hodlers will get more profit. The Cardano ecosystem will get one more useful decentralized project.
Well, that's an interesting question because it seems to me that absolutely all projects funded by Project Catalyst have dependencies. However, we use only open source software like cardano-node, cardano-cli, cardano-db-sync, etc. There are no external factors (such as third-party suppliers, external resources, third-party software, etc.) that may cause a delay.
Project will be fully Open Source and licensed under Apache License 2.0
The idea of AdaHold is very simple and excellent at the same time. Now I'm going to tell more about it.
So, as you probably already guessed, AdaHold is a native token on the Cardano blockchain. The minting and burning of AdaHold are controlled by Plutus smart contract. The price of token is controlled by Plutus smart contract too. Unlike existing similar products, for example hodlCoin financial game for Ergo blockchain which was introduced during Ergoversary Summit 2023, where the token price increases only after token burning, our smart contract is much more complex. In our smart contract we use specific Cardano features like ADA delegation, as well as receiving staking and voting rewards. Therefore, there are other ways to increase the token price in our implementation.
Benefits for holders
The smart contract features described above are very important because they allow AdaHold holders to receive voting / staking rewards for ADA they paid for minting AdaHold just as if this ADA is in their wallet. Moreover, if AdaHold holders decide to redelegate their ADA to another pool, the ADA they paid for the AdaHold token will also be redelegated automatically. This can be particularly interesting for pool owners whose stake is used as a pool pledge. They can hold AdaHold tokens instead ADA and not to break pledge!
What holders should do
Just hold, that's all! The AdaHold holders goal is to hold the AdaHold tokens as long as possible.
How it works
When users buy (mint) AdaHold tokens they send appropriate amount of ADA to a treasury. No protocol fee is charged at that time. Users receive exactly the number of tokens for which they paid ADA. Additionally, users have the option to choose whether or not they want to continue receiving staking/voting rewards for Ada they used to purchase tokens. If they choose to 'Continue Receiving Rewards', they will continue to receive rewards for ADA they paid to treasury for minting AdaHold, just as if ADA is in their wallet. When they sell (burn) AdaHold tokens, they incur a protocol fee. The protocol fee is directed to the treasury, thus increasing the AdaHold token price. In case 'Do Not Continue Receiving Rewards', there is no protocol fee at the moment of token burning. This means that in this case the users pay no fee neither during the token minting nor during the token burning. Instead, staking/voting rewards for ADA they initially sent to the treasury for token minting, accrue to the treasury, contributing to the AdaHold token price appreciation. Thus, in both cases, the AdaHold token price is constantly growing, and never decreases. Those holders who wait long enough will sell tokens at a higher price than they bought. The holder who holds the longest will take the whole treasury accumulated by all the time.
Simple example
In case the text above sounds a little unclear, let's break it down with a bit of straightforward math. Let's assume we are on the start - the treasury is empty and no token is been minted. The initial token price is 1 AdaHold = 1 ADA. The protocol fee is 3%. All users choose option A (Continue Receiving Rewards)
Extra bonus
The example above doesn't take into account the fact that the protocol fee users paid to the treasury is also involved in staking, and the rewards for it go directly to the treasury. Due to this the price of the AdaHold tokens is constantly growing even if no one burns them. In addition, users receive staking/voting rewards for Ada they paid for minting AdaHold tokens, as long as users hold them.
And lastly
I'd want to describe why the proposal is categorized under Concept and not Solution. Despite the fact the smart contract has already been written and is available in the GitHub repository, there is a small issue. At the moment AdaHold smart contract consumes slightly (~10%) more memory than public Cardano test networks allow. I.e. for its deployment it requires a pre-configured (with increased Plutus limits) private test network of Cardano. Further investigation and smart contract redevelopment for its functioning on public Cardano testnets/mainnet is needed. Additionally, at the moment managing the smart contract (creating minting and burning transactions, etc) can only be done through cardano-cli or similar tools, which are not accessible to the average Ada holder. We need to create a convenient user interface on the adahold.com site. So, the main goal of this proposal is to deploy AdaHold smart contract in the Preview testnet as well as to launch the website adahold.com where it will be possible to mint / burn AdaHold tokens.
The positive impact AdaHold will have on the Cardano community is:
As the AdaStat.net developer and maintainer for the past 4 years, I'm probably well placed to assess the problems, needs and challenges of the project.
The reliability of the existing service, despite its shortcomings, and the quantity & quality of features released by the past should help ensure a high level of trust and accountability to deliver the new project.
Additionally, I want to mention once again that the smart contract has already been written and its code is available on GitHub. Also, you may have followed AdaStat on Twitter, and you may have seen that I've studied Function programming in Haskell and successfully graduated it with distinction in January, 2023
New smart contract architecture and development, website prototype
Duration 1 month
Output:
New smart contract development, website development
Duration: 2 months
Output:
Preparing for Preview testnet release
Duration: 1 month
Output:
Catalyst Close-Out report
Duration: 1 week
Output:
Assumptions:
Project Cost:
TOTAL: $35,880.00 = 99,666.67 ADA