frequently asked questions

The following questions and answers will help individuals establish a baseline knowledge of what BlockCentral is and how the protocol operates. 

Integrations Hero - Finantech X Webflow Template
Integrations Hero - Finantech X Webflow Template

What is BlockCentral? 

BlockCentral is a DeFi Fund made up of digital assets, powered by a yield-bearing treasury, with a deflationary, utility token as its medium of exchange. Hold on. I know that is a mouthful. So let’s break it down into individual follow-up questions:

What is a DeFi Fund?

In traditional finance, a fund often refers to an investment program funded by shareholders that trades diversified holdings and is professionally managed. As BlockCentral deals exclusively with digital assets via smart contracts, we offer a unique product called a DeFi Fund. A DeFi Fund is a creation of the BlockCentral team, operating under its parent company, BlockCentral Inc, based in the country of Panama.

What makes a treasury yield-bearing? 

One of the most common ways to earn revenue in crypto outside of asset appreciation (buying and holding), is staking and yield farming. For example, some traditional stocks pay dividends for holding them. In crypto, some assets will reward you with the equivalent of dividends by you providing your tokens (your liquidity) to a platform or decentralized exchange in return for ‘yield.’ 

What makes a token deflationary? 

BlockCentral Token (BLOC) is considered deflationary because the total supply of tokens will decrease over time through automatic and manual burning. No new tokens will ever be minted again. With the supply decreasing, theoretically the purchasing power of each token will be increasing, causing the token meet the definition of the term ‘deflationary.’ 

What makes a token fungible? 

Unlike NFTs, which stand for non-fungible tokens, BlockCentral Token (BLOC) is fungible. This means that the token can be broken down into smaller equal parts. Real world example: A $100 bill can be broken down into twenty $5 bills, or a $1 bill can be broken down into 100 one cent coins. BlockCentral Token (BLOC) is fungible because they are able to be broken down as well, all the way to the 18th decimal place. 

What is a medium of exchange? 

A medium of exchange is an intermediary instrument or system used to facilitate the purchase and sale of goods and services between parties. BlockCentrals’s DeFi Fund is well-diversified across several digital assets, with varying degrees of liquidity. It would be difficult to operate a system for users to enter and exit their share of the DeFi Fund directly. The transaction fees alone would degrade significant portions of the revenue. We solve this is by creating a medium of exchange, the BLOC utility token, that allows a liquid, fungible option for users to move in and out of freely.

Where can I trade BLOC?

Users of BlockCentral never need to leave the dApp. You can trade between BLOC, MATIC, wETH and USDC directly on the Trade page. This is to ensure maximum convenience for the user. If you would like to trade via the DEX, you can do so on Uniswap. 

Why are there buy and sell taxes on BLOC?

Due to the nature of the protocol, being deflationary and acting as a DeFi Fund, the taxes and fees act as the ‘performance fees’ for the Treasury. Not only do they help the protocol remove supply from circulation (via burns), they also help establish the paradigm that BlockCentral is most lucrative for those employing a long-term strategy. Users who are engaged with the protocol the longest, will likely be the ones who earn the most from their participation.

Why are there no locks or timers in BlockCentral?

One of the core tenets of Stasis Network is ‘do not create hostages.’ So many protocols lock user funds for weeks or months, creating a low frequency of panic about price decline, project abandonment, etc. The BlockCentral team believes any locking creates a net-negative for user sentiment. The small taxes and fees are fair without being punitive, we felt it was not necessary to increase the negative sentiment of ‘taking even more’ from our users. 

What type of returns should users expect from BlockCentral?

BlockCentral does not guarantee any returns, as it would elicit a negative response from governing bodies. The protocol is designed to grow and return yields to the users in a strong but sustainable fashion. Users could expect to see APYs in the range of 15-100%, depending on which feature of the network they are engaged with. Yields are variable and subject to change.

Does BlockCentral have NFTs?

Yes, there is an exclusive BlockCentral Viking Collection (BVC) of 240 liquid decaying NFTs that earn weekly lifetime rewards for holding them. 

How does the NFT earn weekly rewards?

The NFTs are tied to a contract that has locked BLOC tokens in it at a specific percentage of token supply. As BlockCentral burns tokens, the percentage remains the same, but requires less tokens to maintain that percent. The surplus tokens above that percent are released as rewards to all the NFT holders on a weekly basis. Theoretically, the NFTs will pay rewards for life, as long as there are tokens locked into the contract. 

What makes the BlockCentral NFTs ‘liquid’?

Unlike traditional NFTs, which amount to little more than illiquid IOUs, BlockCentral's NFTs are able to be redeemed for a fee if the holder needs quick access to that liquidity. The team hopes holders will maintain ownership of the NFTs for a long time, but in the rare moment they need liquid capital, they have the option to redeem their NFT. At that point, the NFT would be destroyed and their Viking would be sent to ‘Valhalla.’ 

What makes the BlockCentral NFTs ‘decaying’?

In order to make sure the NFTs pay a continuous amount of rewards, the contract holding the tokens will decay at a rate decided upon by the team to ensure strong weekly rewards that are also sustainable for the protocol. This will cause rewards to drip out of the contract a little each week. In case protocol burns of tokens are slow at any particular time, this decaying feature will ensure NFT holders still feel they are being rewarded for holding their NFT.

What is The Guild?

The Guild is a ‘members only’ section of the Discord community with a very low barrier to entry. A community member must only maintain holding the equivalent of $300 in BLOC (holding, staking, or farming) and be verified through the Collab.Land bot. There is an even more exclusive private channel called ‘Asgard’ for those community members with the largest stake in the protocol, holding at least the equivalent of 500,000 BLOC (holding, staking, or farming). 

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