"⌞ The upgraded version of the Digital Asset Treasury: Aethir DAT ⌝"
The integration of stocks and cryptocurrencies, the Digital Asset Treasury (DAT) is the star play of this cycle. In fact, as early as 2020, MicroStrategy began converting its cash reserves into BTC, pioneering the DAT track.
With more traditional financial institutions entering Web3 in this cycle, favorable conditions have emerged for the development of DAT.
➣ What is DAT - Traditional Model
DAT (Digital Asset Treasury) refers to public companies or entities allocating significant capital to cryptocurrencies and using them as core reserves on their balance sheets.
DAT bridges traditional finance (TradFi) and the Web3 world, connecting stock market funds to the crypto space, similar to how stablecoins bridge Web3 and Web2.
The operation process of traditional DAT can be roughly divided into three steps:
1⃣ Fundraising Stage
Companies raise funds through methods such as issuing bonds - borrowing money.
2⃣ Asset Acquisition
Using the raised funds to purchase virtual currencies (BTC, ETH, etc.) in the secondary market.
3⃣ Value Cycle
The price of virtual currency (BTC) rises -> boosts stock prices -> raises more funds.
Steps 1⃣2⃣3⃣ repeat, and the scale grows larger.
The core issue here: the positive cycle relies on the continuous rise of coin prices; once there is a crash, it can spiral into a death spiral.
Thus, the traditional DAT model seems only applicable to BTC, as it requires a 100% increase in token prices over time to maintain the cycle. As long as risk exposure is reasonably controlled, the probability of a collapse is very low. As for other tokens, the risk of failure is quite high.
➣ Aethir DAT - Upgraded Model
The core of finance should be to empower the real economy through various means, but in practice, it often leads to bubble blowing and the creation of false prosperity, which seems to be the shadow of traditional DAT.
Let's see what makes Aethir different.
Aethir itself is a DePin project, a decentralized cloud computing company focused on providing distributed computing power for AI, cloud gaming, and more.
In simple terms: Aethir is using Web3 technology to lease globally available computing resources (GPUs) on-chain, with the settlement staking token being $ATH.
This is the first layer of DePin: empowering the real economy of Web2 with Web3.
Recently, Aethir introduced DAT, initiating a second layer of empowerment for DePin.
Why is Aethir DAT considered an upgraded version of traditional DAT?
1⃣ Fundraising Stage
Like the traditional model, it introduces traditional financial funds through Web2 public companies.
2⃣ Asset Acquisition
Still similar to the traditional model, the raised funds are used to acquire $ATH in the secondary market.
The slight difference is that the Aethir Foundation will provide a 20% token acquisition subsidy.
3⃣ Value Cycle
-> Idealistic
Like the traditional model, large acquisitions lead to price increases, asset appreciation generates more fundraising, creating a spiral effect.
-> Pragmatic (the upgraded and different part)
Because there is support from Web2's real business, the treasury can use this portion of token assets to strengthen and expand the entire ecosystem.
The methods and processes are as follows:
1> Provide $ATH lending staking for large GPU clusters to earn profits.
2> Use $ATH to lease GPUs to AI companies to earn the price difference.
3> Continuous profit income repurchases $ATH, causing deflation and raising the token price.
4> The price of $ATH rises, making it profitable for more GPUs to join the network.
5> The network scale expands, and earnings continue to increase.
By adding the "pragmatic" part to the operational steps of traditional DAT, Aethir breaks away from the "idealistic" model that solely relies on token price increases to grow stronger.
Another interesting point is that $ATH locked clients can entrust their tokens to Predictive Oncology in exchange for POAI. This operation can release the potential selling pressure of $ATH to the Web2 side of Nasdaq in the future.
➣ Summary
Aethir, through the DAT model, expands and strengthens the ecosystem while diverting token selling pressure to the Web2 side. The combined effect allows the positive flywheel to continue spinning without solely relying on token price fluctuations.
So, do you think Aethir's operation can achieve legendary status?
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