All decentralized economies distribute tokens to users. The problem is that distributing tokens when adoption is low, creates an excess supply & devalues the economy. There is no link between the release of network supply and the network's adoption. This harms longer-term users and only favours short-term participants. Dafi introduces the first alternative since Bitcoin, to use network rewards for building a decentralized economy. Instead of directly issuing tokens for staking & liquidity – Dafi ties synthetics to each network's adoption. This means that the token release & network demand is proportional. Meaning users are still incentivized when adoption is low, but by being rewarded later, not earlier. By linking these two factors, it attracts longer-term users to be incentivized longer, supporting adoption. Dafi enables every protocol and platform to create a synthetic flavour from their native token. This is then algorithmically pegged to the demand of their network and distributed to users. Synthetic dTokens on Dafi can be created by projects and distributed to their users for Staking, Nodes, Liquidity, or even Participation/Bounty rewards. Individuals can stake the DAFI token for governance and collateralize the creation of dDAFI, the first synthetic unit which is tied to network demand. The quantity of the synthetic can increase only as network adoption rises – incentivizing longer-term users.
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