MANTRA DAO is a DeFi ecosystem that operates on the principles of a decentralized autonomous organization. It is an organizational model that leverages blockchain technology to redefine how businesses as well as institutions can be run more efficiently and fairly by the people involved. Mantra DAO is built on Rio Chain, a substrate-based blockchain infrastructure that is interoperable with the Polkadot network.
Mantra DAO aims to solve the main problems faced by traditional blockchains while hoping to achieve mass adoption in the DeFi ecosystem. Thus, the governance mechanism of Mantra DAO is based on a digital token called OM which allows its holders to participate in decisions affecting the parameters of the system. The OM token is distributed as a reward for contributions made to the platform and provides access to various economic incentives.
Mantra DAO: What is a Decentralized Autonomous Organization (DAO)?
Decentralized Autonomous Organizations, also known as DAOs, are groups of people who agree to abide by certain rules for a common purpose.
Thus, the structure of a DAO as proposed by Mantra DAO is collectively owned and managed by all of its members. Decisions are made by all members of a community organized around a specific set of rules applied on a blockchain.
These rules are specified in smart contracts, the famous smart contracts. From then on, the decisions are approved or rejected according to the new proposals voted during a given period within the DAO.
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Internet users and users can become members of Mantra DAO and any DAO by purchasing governance tokens, which will allow them to have a say in the decisions of the community and to vote on them.
Because of this flat hierarchy approach, a decentralized autonomous organization can have many useful applications where the removal of a central authority leads to more efficient and transparent governance as well as results.
What is OM coin? What is it used for ?
The OM coin is the native token of the Mantra DAO platform. The maximum supply of the token is capped at 888.8 million units. Thus, the Mantra DAO token is deflationary.
If the demand increases, its value will also increase, because no new tokens can be minted. There are several use cases for OM in the ecosystem.
Staking and ready : Mantra DAO users can receive rewards for staking OM by staking Polkadot (DOT) and other assets. OM tokens can also be used as collateral for loans.
Ownership and Governance : OMs give users the right to vote for certain economic parameters such as the interest rate, the level of inflation, the allocation of subsidies to the ecosystem, etc.
Reputation : Mantra DAO OM token holders can grow their reputation through KARMA protocol and get rewarded for their contribution to Mantra DAO.
Who is behind Mantra DAO?
The team behind the Mantra DAO project and the OM crypto is made up of several cryptocurrency expertsdont John Patrick Mullin, Will Corkin, James Anderson, Rodrigo Quan Miranda et Stéphane Laurent Villedieu.
They are experienced developers and Web3 professionals with backgrounds in finance as well as entrepreneurship.
How does Mantra DAO work?
The Mantra DAO project mainly focuses on improving governance, staking, lending and borrowing, as well as new features of Karma or Mantra Pool.
However, it follows the same node structure as Kusama and Polkadot. In addition, DOT and KSM users benefit from an advantage to access the network. Mantra DAO allows lending and borrowing at the heart of decentralized finance (DeFi) i.e. crypto finance.
Thus, an investor or trader can easily opt for loans with instant access to stable digital currencies like USDT and other cryptos.
💡 Good to know : In the Karma protocol, the network keeps a record of the user’s reputation, i.e. it works the same way as the credit rating in a banking department. The more Karma a member has, the more benefits they receive within the ecosystem.
Regarding Mantra Pool, it is a perpetual savings where you can play games to earn cryptocurrency. To participate in Mantra Pool and have a chance to win a share of the DAO MANTRA rewards, users must burn their OM tokens (at least 1 OM) to participate in the savings games.
In addition to being able to participate in MANTRA POOL by burning OM tokens, members who accumulate enough KARMA receive free entries to participate in all the MANTRA POOLs offered. Once members reach the various KARMA levels, they are automatically entered into each game in the quantity offered relative to their level.
What are the strengths of Mantra DAO (OM)?
- MANTRA DAO (OM) is built on a substrate of Polkadot (Rio Chain), an infrastructure that guarantees scalability, security, speed (2s/block) and transaction throughput up to 3,000 TPS.
- MANTRA DAO is interoperable with other tokens on Polkadot and supports some of them as collateral to participate in loans.
- Exchanges and transfers between wallets are completed in minutes, while paying low transaction fees.
- MANTRA DAO uses a “hash” protocol that awards points to network participants based on their contributions, giving more benefits to users with high scores.
- OM is fully decentralized, with no single owner. It is easily customizable therefore less prone to errors and it is more flexible.
- The Mantra DAO blockchain is able to transact at a faster rate compared to many of its competitors.
- OM can handle larger transaction volumes due to its ability to generate blocks frequently, allowing users to receive faster confirmations.
- OM uses five cryptographic algorithms to prevent malicious mining centralization and hash power fluctuation.
Conclusion
Although Mantra DAO aims to create a safe, secure and personal ecosystem for its users, it is always important to remember that the crypto industry and the cryptocurrency market in general are not free from risk.
This is why it is important to do proper and correct research before investing money to avoid reckless risk-taking.
