Bread

Bread $BREAD

N/A

Breadchain is a decentralized cooperative that connects post-capitalist web3 projects through blockchain-powered mutual aid. Its flagship application, Bread Crowdstaking on Gnosis Chain, allows users to stake xDAI to earn yield and receive BREAD tokens. These tokens grant voting rights to allocate interest earnings to member initiatives, such as worker DAOs and community currency tools; a unique trait for a token akin to a stablecoin.

Stablecoin
Bread postToken Page

Bread token design description

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TL;DR

  • As a governance token, BREAD endows holders with the power to decide how the yield from staked xDAI is distributed among Breadchain’s supported projects. Holders can begin voting on the governance portal, and may also opt to provide liquidity; retaining the same voting rights.
  • BREAD is minted 1:1 to xDAI and can be burned at any time to redeem the underlying stablecoin. This mint-and-burn system makes BREAD akin to a representation token. Holders can bridge their tokens to Gnosis Chain here, and start crowdstaking here.
  • Use BREAD as a medium of exchange in the Breadchain marketplace to purchase goods and services. Current marketplace supporters include Giveth, TBS DAO, Dandelion, Crypto Commons Association, and Crypto Leftist Discord.

Economic Summary

The BREAD token anchors the Breadchain ecosystem by tying its value directly to xDAI, a stablecoin on the Gnosis Chain, through a “bake-and-burn” process. This stable foundation allows BREAD holders to redeem their tokens for xDAI at any time. The underlying xDAI is deposited to sDAI and generates yield used for Breadchain cooperative activities.

Additionally, BREAD functions as a medium of exchange in the BREAD Marketplace, facilitating transactions for goods and services among a network of supporters. Beyond this, BREAD unlocks governance capabilities, enabling holders to vote on the allocation of yield generated from sDAI to projects within the network.

Bread captures value through two primary value capture mechanisms: Value transfer from Representation: BREAD is minted and burned at par with xDAI (Representation), via smart contracts such as 'Bread.sol'. This stable value allows BREAD to serve as a reliable medium of exchange (Value Transfer) in the BREAD Marketplace, enabling transactions for goods and services supported by partners like Giveth and Crypto Commons Association. Generalized Governance: Bread holders can vote (Conditional Action) on allocating yield generated from sDAI to various projects within the Breadchain ecosystem, directly influencing (Governance) resource distribution. This governance power, facilitated by contracts such as 'ButteredBread.sol' and 'YieldDistributor.sol', endows BREAD with utility value in its ability to allocate financial resources to the most impactful projects.

The above mentioned value capture mechanisms can be each formulaically described as:

Value transfer from Representation=[5][1]\text{Value transfer from Representation} = [5][1]
Generalized Governance=[8][3]\text{Generalized Governance} = [8][3]