GTON Capital

Posted on Apr 15, 2022Read on Mirror.xyz

ELI5: Business model

This time we explain the business model of GTON Capital.

GC DAO is an organization where developers create products and protocols that generate revenue for the DAO treasury.

GTON Capital DAO’s mission is to bring innovative technologies that will make DeFi products and their governance more sustainable, with a special focus on capitalizing and monetizing DAO activities and participation of its members.

At the core of the GC system is the Treasury.  It provides backing for GTON which directly affects its price through Pathway. Treasury’s sustainability and growth are the key health indicators of the whole GC ecosystem. Thus, the growth of treasury reserves is at the heart of our business model and is a key monetization driver.

There are two sources that increase treasury reserves: generating revenue from products and from major protocols.

The growth of the revenue replenishing the treasury will push the capitalisation up. However, the influence of infrastructure should not be underestimated: as we strive to be at the top in terms of capitalization, we will also prioritize DeFi infrastructure solutions that will enable the development of other DeFi products and further push GC capitalization.

There are three types of monetization in total:

I. Revenue generation from DeFi products:  

  • OGSwap is a decentralized exchange based on the PMM model, 
  • GCMoney is a protocol for algorithmic stablecoins and synthetic TradFi assets and indexes, 
  • Candy is a dApp for staking of DeFi assets and stablecoins

These products will all have fees. You can learn more about the mechanics of revenue generation from products here.

II.  Revenue generation from core protocols: 

  • Staking allows governance token stakers to increase their allocation, 
  • Bonding allows whitelisted users to enter the GC DAO by purchasing governance token directly from the DAO at a discount, 
  • Pathway is an algorithmic market making protocol for dynamic pricing of the DAO token based on protocol traction: users, TVL, volumes etc

III. Infrastructure: the team builds DONs (decentralized oracles networks), cross-chain bridges and a blockchain network (GCNet). These are infrastructure tools that can be monetized by other DeFi projects in the form of SaaS or platforms.

All the three types of monetization are interconnected and managed by DAO stakeholders.

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