QURAS and Project Sustainability
Financing for most blockchain projects is done in cryptocurrency, not legal tender. Many projects that were financed in Ethereum at its highest price range, which exceeded $1,350 at one point, were heavily impacted when Ethereum’s price went under $100 at another point.
The purpose of financing includes securing fixed expenses such as the expansion of head counts and offices. When the price of cryptocurrency drops drastically, however, there may be cases wherein securing such fixed expenses becomes difficult. Financing in cryptocurrency has a risk that the original roadmap will not go as scheduled. In addition to being compliant with laws/regulations, increasing the continuity of a project is an important requirement for cryptocurrency/blockchain projects to increase their reliability.
There is also the same risk when financing in Bitcoin and other cryptocurrencies. While having a risk of complicated international accounting and tax laws, risk-hedging requires a high level of decision-making skills. Even if using a legal tender that does not fluctuate, the flow- type of income will be required for business continuity.
As a protocol to implement a smart contract, it is necessary to face such problems and take an approach to support project users. For more details on a protocol-based technical approach regarding this issue, please refer to 2.0. Distributing smart contracts’ transaction fees to project operators (or token managers) will be a big incentive for those managers to actually activate their own projects’ token economy, not to mention that the projects’ continuity can be increased.
With the perspectives of sustainability, actions that seek short-term benefit and actions that are harmful to society are closely related. If short-term financing should be realized, there is a risk of causing a severe problem when selling products without understanding its risks well. Using QURAS will exclude such risks by making it easier to have a best practice for a project that is based on a long-term strategy.
With QURAS, it is possible to create a protocol that balances individuals and groups based on the common good to make the entire ecosystem better. We don’t believe in preconditions that would put every individual benefit behind or preconditions for people to pursue only monetary and materialistic benefits. Using QURAS will create a virtuous circle wherein proper incentives will be given to ecosystem contributors and compensations for consensus nodes will increase in the end by increasing the overall transactions.
Also, QURAS will take a realistic approach such as distributing transaction fees, just like Proof of Stake (POS) which is planned as a future update.
