NetWorth (NETW) is a venture capital fund protocol on the Binance Smart Chain that is inflation-adaptive, maintains a minimum risk-free value (RFV), and is backed by a selection of assets and investment strategies voted on by the community.
In simple terms, NETW is an algorithmic currency backed by treasury assets that maintains a floating market-driven price.
Treasury assets are invested, similar to a venture capital fund, into protocols and projects decided and voted on by the community. NetWorth also has staking and bonding mechanisms: Staking NETW tokens earns more NETW tokens (generated from treasury earnings), and bonding NETW tokens allows users to purchase new NETW tokens at a discount (ensuring permanent liquidity for NETW markets).
Now that you understand what NETW token is, let’s dive into how NetWorth is structured, and how passive income can be earned with NetWorth.
NetWorth governance and treasury management is handled by the NetWorth DAO. Every treasury contributor and NETW holder is a member of the NetWorth DAO. The NetWorth DAO will have different functions, broken into two different phases.
Phase I: Pre-Staking & Bonding
Before the launch of staking and bonding, the NetWorth DAO can accept treasury contributions from early-bird contributors. Pre-launch contributors will receive liquidity provider (LP) tokens that represent their share of the NetWorth treasury. At any time in the pre-launch period, LP holders can burn their LP tokens to take their funds back from treasury and de-commit to the project, so long as the funds have not been allocated by community vote. Pre-launch contributors will also receive governance tokens (GT) that will allow them to have a say in all voting and decision making, with their vote weighted proportionate to their share of treasury funds.
The initial allocation of NETW tokens will be decided by the community, based on the final pre-launch total contributions to treasury. Once the initial NETW token allocation is decided, all LP tokens will be frozen, and all LP tokens will be replaced with NETW tokens proportional to each holder's initial treasury contribution.
Phase II: Staking & Bonding
Once staking and bonding go live, NETW will trade openly on decentralized exchanges, and any NETW holder will be able to earn a share of the revenues generated by the NetWorth treasury (including investments in projects and protocols, as well as bond sales) simply by staking their NETW tokens on the NetWorth website. Users will also be able to 'bond' their tokens by providing approved LP tokens in exchange for discounted NETW tokens after a fixed vesting period. This ensures permanent liquidity for NETW markets
Staking is the profit distribution model of NetWorth.
When you stake NETW tokens to the staking contract, you will receive an equivalent amount of sNETW tokens. These sNETW tokens are profit accruing tokens. Through sNETW you will receive a proportional fraction of total profits.
Thanks to NetWorth’s rebasing mechanism, holding sNETW allows you to compound your yield. Most importantly, NETW does not rebase out of thin air, the rebasing is done after buying actual NETW units using treasury revenues, which are then distributed to sNETW holders.
Put simply, rebasing is the process of minting new NETW tokens that are paid to stakers.
Here’s how rebasing works:
Say there are 500k NETW staked and 500k sNETW distributed against them. Now, say the protocol makes a profit of $5k and uses this profit to mint 5k NETW. Now, there are 505k NETW against 500k sNETW. In this case, sNETW supply needs to increase. So, sNETW is rebased by 1%.
A bond in the NetWorth ecosystem is a representation of your liquidity pool (LP) share.
To create a bond, you add liquidity to an approved liquidity pool (such as the NETW-BUSD PancakeSwap pool). Now, you have to trade your LP share for discounted NETW. This is called bonding.
Bonding allows you to get more NETW tokens than you would get in the market. Yes, with your LP bonds you can buy NETW tokens at a discounted price.
As mentioned before, NETW is backed by the value of assets in treasury. The risk-free value (RFV) of NETW will always be the total value of assets in treasury divided by the total NETW in circulation.
To maintain a market-driven price, the tokens are burned and minted by the protocol based on votes. The community decides when to burn and mint tokens, based on price fluctuations or other criteria determined by the community.
In short, the treasury always holds assets for each NETW token. This implies that NETW will not fall below its intrinsic value in the long term.
NetWorth also makes a profit by depositing assets to yield generators and investing treasury assets in projects and protocols voted on by the community.
90% of all profits are rewarded to stakers. The remaining 10% to the NetWorth DAO. The rewards are paid in NETW backed by BUSD units. This mechanism maintains a stable intrinsic value.
Think of NETW rewards like an accumulating value asset. You don’t just want the value of your assets to appreciate, instead, you also want to accumulate more assets. The best part is that holding NETW will give you both, more NETW units plus the value of your NETW holdings will appreciate over time.
NetWorth has a standout solution for maintaining underlying value in a way that is adaptive to, and even takes advantage of inflation. Moreover, the staking and bonding mechanisms provide additional methods to multiply your earnings.
NetWorth aims to grow in value over time by continuously adding a mixture of solid and stable crypto assets to its portfolio as well as catching the wave on huge new opportunities in emerging market segments such as DeFi, NFT, gaming, and metaverse development.
Our fundraising and treasury-building phase of operation is based on the highly successful OlympusDAO technology that has sustained an average 5-day ROI of 8%+ for nearly a year now. Our project differs from Olympus in several ways, however. Olympus is attempting to build a stabilized reserve currency, whereas we are attempting to build a decentralized autonomous organization that accrues assets as well as a steady and reliable increase in value over time. The goal of NetWorth is to not only realize appreciation in the value of these assets but to also accumulate more assets over time. Holding NETW will give you the best mix of a hedge fund and cryptocurency investment all wrapped in a liquid asset that is community-governed from day one.