What Is MahaDAO (MAHA) And How Does It Work? | KuCoin Crypto Gem Observer
Ever since Richard Nixon took the US Dollar off the gold standard, its value has essentially been maintained through trust. To this day, it is recognized as the global reserve and a generally safe bet. However, especially in recent times, the Federal Reserve, no longer bound by the need to back each dollar by gold, has been increasing money supply to the point that its purchasing power has tanked.
With the advent of decentralization and the crypto market, MahaDAO has developed a solution that maintains purchasing power. That solution is ARTH, a non-depreciating stablecoin.
What is MahaDAO?
MahaDAO is a community-powered, decentralized autonomous organisation. It’s mission is to empower people to preserve their purchasing power and build trust in decentralized technologies. Seeing blockchain and cryptocurrency technology as the best medium for its mission, it created ARTH, a non-depreciating currency.
ARTH is a first of its kind valuecoin. It is able to maintain purchasing power over time, even as the market shifts, helping to bring back trust to the monetary system. The project is ultimately governed by the community through democratic frameworks.
How Does MahaDAO Work?
ARTH is able to maintain purchasing power through the use of algorithms. It is a decentralized algorithmic value-stable coin that is backed to stable collaterals. These collaterals are complete hedges of one another, and so they are able to balance each other out.
To mint ARTH, a ‘vault’ must be created with the necessary collateral deposited. Through the use of a buying power ratio, the protocol is able to define how much of each collateral should be in the vault for it to maintain its buying power.
Several mechanisms are in place to ensure that ARTH remains collateralized, such as the debt-to-collateral ratio and the liquidation ratio. Together, these help make ARTH inflation-proof.
Who Created MahaDAO?
The core team behind MahaDAO is nine people strong, consisting of a mix of economists, blockchain developers and data scientists. The project was created by two individuals: Steven Enamakel and Pranay Sanghavi.
Steven is a self described computer scientist, economist and mathematician. He previously founded Verzures, a blockchain development company, and worked as VP of Products and Blockchain at Intellibuzz, which provides IT management solutions.
Pranay previously created Intellibuzz with the goal of spurring innovation in the market using technologies such as AI and blockchain. This culminated in his involvement with the MahaDAO project, where he is leading the design and development of the ecosystem.
What is the MAHA Token?
The MAHA token acts as the governance token of the project. Its utility is intertwined with that of the ARTH coin, providing a way to regulate ARTH. Its token distribution is as follows:
Private Sale: 15%
Core Team: 7%
What is the MAHA Token Used For?
MAHA is a governance and utility token that’s main purpose is to regulate and maintain the decentralization of the ARTH coin protocol.
ARTH is a decentralized algorithmic currency that fights against depreciation, and so MAHA’s role in upholding the decentralization of the protocol is paramount to the success of the project.
In terms of governance, MAHA empowers token holders to vote on savings rates, stability fees, direction, strategy and future course of action for the ARTH coin.
Taking notes from the success of predecessors such as Bitcoin, Ethereum and MakerDAO, MahaDAO is looking to develop things further and create a currency that no longer loses its value as drastically as seen with the likes of the US Dollar. Stablecoins are always popular in the cryptocurrency space, and one with such an innovative approach as MahaDAO and ARTH look to capitalize on that.
Of course, the MAHA token is central to its success. You can even grab some MAHA to get involved with the project and help steer the project in the right direction.
All in all, as it develops further, MahaDAO is definitely something worth keeping an eye on.
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