The Standard is a new decentralized finance protocol that will bring a mix of cryptocurrencies and precious metals to DeFi. The native TST token will undergo a pre-market distribution on August 25, which significantly benefits Vaultoro users. You will gain exclusive access alongside VCs and large investors to acquire the Standard Token at a much earlier stage.
Table of contents
What Is The Standard Again?
Decentralized finance is an industry that gives rise to many ideas and concepts. Several services and products have proven successful, although they all fall short in gaining mainstream attention. DeFi protocols are primarily designed for existing cryptocurrency enthusiasts and hodlers rather than those who may benefit more from access to financial services and products.
The Standard aims to change that narrative by introducing something different. It caters to cryptocurrency and mainstream clients alike. Users will be able to collateralize their precious metals holdings and borrow The Standard Euro stablecoin accordingly. That stablecoin maintains a loose peg to the Euro but is primarily backed by cryptocurrencies and precious metals.
The project ushers in a return of the Gold Standard rather than relying on banking solutions. The majority of stablecoins in the industry are backed by reserves in a bank account. However, that bank account can be frozen or shut down at any moment, putting clients at risk. The Standard’s use of cryptocurrencies and precious metals – two assets not controlled by intermediary financial institutions – allows for broader financial freedom.
Moreover, the concept provides a different take on decentralized finance. Users no longer have to sell their collateral to receive the native S-EURO stablecoin. Instead, they borrow against their holdings and can pay back the loan quicker if market conditions make it cheaper to acquire S-EURO in any way. It is a permissionless approach to borrowing and lending without involving any unnecessary intermediaries.
Community Governance Through TST
In the spirit of decentralization, The Standard will not have any corporate hierarchy. Instead, the community will take the wheel and achieve consensus on how this protocol will evolve. Matters to vote on include supporting new stablecoins, adding extra collateral options, adjusting the stability fee- if necessary – and so forth. Voting rights are enabled through The Standard Token – or TST – an asset that will be made available for sale shortly.
As a governance and utility token, TST serves multiple purposes for token holders. Not only does it grant voting rights and access to the overall governance of the protocol, but it will also provide financial benefits. Through TST, token holders can reduce the stability fee cost by 50%, for example. Additionally, all TST collected through stability fee payments are sent to the DAO Treasury reserve, which the TST holders can use as they see fit. Voting on how to spend the funds will be paramount.
Additionally, if a stability fee is paid in TST, 20% will go to The Standard Token’s active voters, and 30% goes to prediction market participants. The remaining 50% goes into the DAO Treasury. Thus, holding TST and actively engaging in voting proposals will generate a revenue stream for users who are active members of the community.
Furthermore, TST holders will gain access to the acquisition of liquidated collateral under the spot price. That is a significant deal, as users will be able to pick up crypto assets and precious metals below their current market value by holding TST. An extra benefit of being a TST holder is how you can vote on emergency shutdowns if a severe market failure or bad behavior occurs. The resuming of services can be voted on by token holders too.
Onboarding Native And Public Tokens
Another crucial aspect of The Standard Token is how it is used to help approve both public and native tokens. The public tokens are cryptocurrencies clients can leverage as collateral through The Standard’s Smart Vaults. In addition, the tokens can be backed by assets or even a centralized organization, paving the way for some big onboarding partnerships in the future. Withdrawal of public tokens is possible, including assets like Ethereum, S-EURO, Pax Gold, The Standard Token, and others.
For new native tokens to be added to the Standard, a similar procedure exists. Native tokens are created by the Standard Protocol’s native custodians and are backed by assets requiring a centralized organization. Introducing support for new metals like Palladium or even copper is possible if enough TST holders vote to introduce that change.
As all TST holders are equally able to partake in The Standard’s governance, there is a lot of responsibility. Token holders can place their TST in the native or a compatible wallet. Every token represents one vote on each voting subject, ensuring large holders have no incentive to act maliciously and harm the platform. Additionally, The Standard aims to reach a critical mass of TST holders to protect all stakeholders from centralization.
Where To Get TST From?
The TST pre-market distribution will kick off on August 25, 2021 at 1pm CEST. Initial access is reserved for VCs and more prominent investors, alongside Vaultoro community members. During this phase, 100 million TST will be made available for users to acquire. Vaultoro community members will have a limited time to receive these tokens; thus, timing will be of the essence. Purchasing TST is possible with the following currencies: BTC, ETH, GOLD, SILVER, DAI, USDT, USDC, LTC, DASH, UNI, LINK;.
A private distribution of 150 million tokens will be held on TheStandard.io at a later date.
