What is Spectrum Token?
Spectrum Protocol is a decentralized yield optimizer platform that allows users to earn compound interest on their crypto assets by farming. This innovative platform utilizes various investment strategies governed by smart contracts to automatically maximize rewards from various liquidity pools (LPs) and other yield farming products in the Terra ecosystem.
The primary product offered by Spectrum Protocol is the Vaults, which enable users to provide liquidity or stake their crypto tokens. Users can deposit for auto-compounding, and the vault will automatically increase their deposited token amount by compounding yield farming rewards back to their initially deposited LPs. This system provides a hassle-free way to earn passive income on crypto assets.
Fully Decentralized Autonomous Organization
Spectrum Protocol is a fully Decentralized Autonomous Organization (DAO) with no privileged access. All changes must be done through voting, which provides transparency and fairness to all stakeholders. People can track changes and stay aware of them because the voting period is for 7 days, and there is a time lock for 1 day. Any SPEC holders can create proposals, and any SPEC stakers can participate in voting.
The developers of Spectrum Protocol hold a development genesis token of 9% (3,600,000 SPEC) of the total supply to manage the platform. However, in the long run, developers will have less proportion of votes, and the community will have more power to decide the direction of the platform.
Token Distribution and Allocation
SPEC tokens are minted for 3 years (2.5 SPEC per block), with 16% (6,400,000 SPEC) going to the Warchest and 75% (30,000,000 SPEC) going to the community. The Warchest will be used to spend operation costs, and the community will be used to distribute to Spectrum vaults.
To ensure a fair launch and long-term development for Spectrum Protocol, on July 4, 2021, the developers transferred 3,500,000 SPEC to the locked contract, leaving only around 25,000 SPEC (0.0625%) remaining in the developer wallets for initial voting for new vaults, and 75,000 SPEC already in circulation.
The development fund has been unstaked from the governance, allowing users with staked SPEC to earn more shared revenue from Vault Fee. The development fund will be frozen for 50 days after project launch (until all vaults' rewards for users are unlocked) and released at a fixed rate over 3 years.
SPEC Token: Spectrum Protocol's Governance Token
The SPEC Token (SPEC) serves as Spectrum Protocol's governance token. Only users with a staked SPEC position can vote on polls, and each user receives voting power weighted by their amount of staked SPEC. For every poll, a user can choose to allocate up to their total staked SPEC. Users with higher SPEC stake will have more influence when deciding in governance polls.
New governance proposals in Spectrum Protocol are called polls. Any user can create a poll by paying an initial deposit of SPEC tokens. If the poll fails to pass the minimum voting quorum or minimum threshold, the deposited SPEC will be deducted based on the failing percentage and given to SPEC stakers, distributed proportionately according to their relative stake.
Polls consist of a text description of the proposition (with perhaps an external link to further resources/discussions) and include an executable message encoding the instructions to be run if it passes. The message will be executed with the privileges of the Spectrum Gov contract, which has the power to invoke any function defined by the other Spectrum Protocol smart contracts.
In conclusion, Spectrum Protocol offers an innovative and secure platform for users to earn compound interest on their crypto assets. The platform's fully Decentralized Autonomous Organization ensures transparency and fairness in decision-making. The development fund's release at a fixed rate over three years ensures the long-term development of the platform, and the token distribution and allocation provide a fair launch for all users. Overall, Spectrum Protocol's unique investment strategies and governance system make it a promising platform for earning passive income on crypto assets.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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