Will DOT Be The Next ETH? Why Verum Protocol decided on DOT.
We are not alone in thinking so, and that is why Verum Protocol is coming to Polkadot this year.
The Polkadot network tries to solve two key problems plaguing the Ethereum network, scalability and interoperability of blockchains. Polkadot introduces the sharding technique to solve the problem of scalability, and thanks to the structure of Polkadot, it can combine multiple different blockchains allowing DApps and smart contracts to run cross-network.
Interoperability and the ability to operate in a low-gas-fee environment were prime concerns for us at Verum Protocol, which is why we chose to initially launch the token on Binance Smart Chain while we wait for Moonbeam and the Polkadot network to go live.
As a deflationary token with a burn built into every transaction, it is important that we are able to operate on a blockchain with low gas fees so that transactions can remain as profitable as possible. As a future Polkadot DeFi protocol, Verum trading, staking, farming, and more that is to come must be as profitable as possible.
What makes Polkadot so attractive when compared to Ethereum?
Beyond its superior architecture, the thing that actually makes Polkadot such an attractive blockchain is the fact that it focuses on working with Ethereum, not trying to replace it. This is also an important aspect for us at Verum Protocol as we look to position VRM to be a deflationary token that can operate cross-chain — thanks to Polkadot’s interoperability.
Thanks to a mixture of Relay Chains, Parachains, and Bridges, Polkadot can offer the best of all worlds. The liquidity and home of DeFi in Ethereum, the users and low-fees of Binance Smart Chain, and access to the blockchain of ‘Digital Gold’ i.e. Bitcoin.
Verum Protocol & DeFi
Decentralised Finance is, ultimately, where VRM is heading. There is a whole new ecosystem of DeFi coming together on Polkadot thanks to projects like Acala, and VRM is already well-positioned to factor into this as the first deflationary protocol on the chain.
With the 3% VRM burn on transaction, every time VRM is bought, or sold, or even transferred, 3% of tokens are burned. That’s right, everytime VRM is sold, the burn helps to alleviate sell pressure. What this means is that over time, VRM is becoming more and more scarce, and as a result, more and more valuable.
When this protocol is combined with staking and farming, opportunities VRM is burned at a faster rate — meanwhile, stakers and farmers are also earning rewards. This creates a double-reward structure that makes deflationary protocols a popular investment — and when you compare VRM to some of the more established deflationary tokens on the market — the upside is clear to see.
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What is Verum Protocol?
VERUM is the first truly deflationary currency on the Polkadot chain and is aiming to go live on the Moonbeam/Polkadot parachain in Q2 2021.
VERUM token has been designed as deflationary to be both a store of value and a hedge against inflation. The 3% token burn mechanism that makes VERUM deflationary is automated by a smart contract and will take place every time a VERUM transaction occurs. Once the smart contract is deployed and the burn function is initiated, it cannot be stopped.
The team behind VERUM are a group of Cryptocurrency enthusiasts from a reputed Fortune 500 company based in the US, and a former developer of Wanchain, with backgrounds in blockchain development and cloud services, with a specialism in the development of DEXs and Substrate web applications. Due to many of the team working with a highly recognised Fortune 500 company, they have chosen to remain anonymous to avoid conflict of interest accusations in the workplace.