5. Frequently Asked Questions

5/1 Why do you need NodeDAO?

The pegging of cryptocurrencies to the US dollar makes it less volatile and gives users a greater sense of security. However, the US dollar is controlled by the US government and the Federal Reserve, which indirectly affects the market volatility of stablecoins.

NodeDAO aims to create a freely fluctuating reserve currency, which solves the dilemma of the market. The token NED in the treasury is controlled by the protocol and backed by 一篮资本. NodeDAO hopes to be a currency that maintains high purchasing power parity despite market fluctuations.

5/2 Is NED a stable currency?

NED is not a stable currency. It is minted by the DAO protocol and controlled by the protocol. NED is supported by the value of at least 1USDT. When the price of NED is lower than 1 USDT, the protocol will buy back and destroy NED with the held treasury funds, to make sure the price of NED can always be higher than the price of 1USDT for trading. In the future, the treasury will have more bring economic sources from cooperative projects. With the support of more projects, it is believed that the value of NED will always be higher than 1USDT.

5/3 How NodeDAO works

NodeDAO manages the treasury by the protocol which has liquidity ， bond structure, and staking reward mechanism;

Through bond sales, users can purchase NED at a lower price than the market, and by staking NED, there are incomes to divide.

5/4 How to participate in NodeDAO?

NodeDAO can be participated thought staking and bonding. Users stake NED to obtain more income, and creditors obtain NED at a discount obtained by locking their own LP tokens.