Bread

This VCM captures the combined value derived from the stability and utility of BREAD, a cryptocurrency minted using xDAI through the Crowdstaking platform’s mint-and-burn-mechanism. The stability derived from the predetermined exchange rated, enforced by smart contract, contributes in eliminating price volatility, providing holders with a dependable method to enter or exit the ecosystem. The trust and predictability in this exchange process form the foundation of BREAD’s intrinsic value, which reflects the Representation origin of value.

This stable intrinsic value directly enables BREAD’s role as a functional currency within the BREAD Marketplace. The Value Transfer origin of value emerges from this utility, as BREAD’s worth is enhanced by its practical applicability in real-world transactions. To clarify, the intrinsic value of BREAD is the stable, designed value derived from its fixed representation of xDAI, enforced by smart contracts. In contrast, the market value is the price at which BREAD is traded in the open market, determined by supply and demand. For BREAD to effectively serve as a medium of exchange, its market value must remain closely aligned with its intrinsic value. This alignment is maintained through the representation mechanism, which ties BREAD’s market value to xDAI, and the two-way redemption process (minting and burning), which corrects any deviations, ensuring the market value consistently reflects the intrinsic value.

This VCM embodies the value derived from the governance rights granted to BREAD holders. By holding BREAD and participating in voting (Conditional Action), holders can influence the ecosystem’s resource distribution, such as directing interest earned from sDAI to supported projects (Governance). This governance power enables holders to shape the ecosystem’s priorities and fund initiatives, which is where the value originates. The value capture is explicitly tied to active participation, with benefits accruing to those who engage in decision-making and those affected thereof.