The world we live in has always been struggling with two phenomena that until today seemed impossible to defeat: inflation and hyperinflation. During the 2008 crisis, a lot of dollars were printed to save the banks, while during the Covid crisis as much as 5-6 trillion new dollars were printed, resulting in inflation never seen before. Fortunately, with the advent of cryptocurrencies, we are seeing innovations in this field, thanks to crypto assets with deflationary supply and innovations like MahaDAO.
What is MahaDAO?
As the name suggests, Maha is a DAO governed by a community (and therefore by a governance token) that wants to help its token holders maintain their purchasing power, fighting inflation. The governance token has the same name as the project, Maha, whereas the novelty comes from a secondary token, ARTH, able to offer a decentralized algorithm against inflation. We will now explain more about how the two tokens proposed by MahaDAO work.
MAHA Governance Token
The name Maha means great, the greatest, supreme, and is a fitting name for a token that will decide the fate of the project. If in traditional companies we were used to shareholders, in a DAO we have token holders who make proposals and vote on them to decide the future of the project itself. An innovative mechanism that is really loved by the public, as all the MAHA token holders have a right to vote.
Obviously the more tokens one has, the greater the voting power. DAOs are taking hold in every crypto niche, so we’ll be hearing a lot more about them in the future. The max supply is 10,000,000 tokens, while the minimum price on CoinGecko is $1.98. The maximum was $17, while the current value is around $11. The token is already tradable on Uniswap!
ARTH – The Valuecoin
ARTH is a valuecoin, a kind of evolved stablecoin that has as its primary objective the stability of its purchasing power. If in the case of stablecoins, a dollar is always a dollar, in the case of ARTH, a product that is worth 2 ARTH today will be worth 2 ARTH in 5, 10, 20 or 100 years. In short, the purchasing power must always remain the same even if the value of ARTH changes over time. To do this, Maha has adopted the reserve vault introduced by MakerDAO and improved it, adding features that will help the token maintain its purchasing power instead of pegging it to a fiat currency like the dollar (which is losing value quickly).
ARTH is therefore pegged to different assets and is able to rebalance to achieve its goal. Unlike MakerDAO, where the project creates new DAI when the asset loses its value, MahaDAO’s innovative mechanism in this case buys more underlying assets to reinforce the value of its ARTH token. A mechanism that may seem difficult to understand but could truly be the solution to currency devaluation.
Features of MahaDAO
Zero fees – MahaDAO uses the Matic Network to offer transactions without fees, both during sending and receiving.
Lightning-fast transactions – In this case, ARTH reminds me a bit of Nano. It takes only 3 seconds to complete an ARTH token transaction. Unbelievable!
Ultra-simple UX: Considering that cryptocurrencies and blockchain are quite difficult in themselves, the MahaDAO team decided to focus on an ultra-simple UI to attract even people who have never heard of crypto.