Afreum DAO and Afreum Ecosystem Tokenomics

Since we published the Afreum DAO Charter, which establishes a preliminary framework for community participation in the development of the Afreum Ecosystem, there have been many statements and questions in the group signalling that the level of understanding of the Afreum Ecosytem, and its tokenomics, is not as high as might be expected.

We've seen questions and statements along the lines of: "Is Afreum abandoning the AFR token for the AFRX token?" First, it is important to understand that nothing has changed in the Afreum Ecosystem with the publishing of the Afreum DAO Charter, with the exception that the community now, theoretically at least, can now determine the future development of Afreum. What this means is that community members can now take full credit for things that go right, and together come up with solutions when things go wrong.

Nothing else has changed except that Afreum is currently operating in unusual circumstances. For example, we were recently a victim of a Binance Scam using artificial intelligence to mimmick senior Binance executives. That scam resulted in AFR tokens being dumped on the market, and the price of AFR dropping 98%. We have since bought back AFR to the point of the price recovering 30% or so. This means there is still a lot of potential for price recovery to pre-scam level. We remain committed, through the Afreum DAO, to stewarding the AFR token back to its full potential.

AFR is the main token of Afreum ecosystem. All our liquidity pools in Stellar AMMs pair with AFR. Afreum Save delivers higher yield (10%) for AFR deposits. Upcoming apps such as Afreum Pay, Afreum Remit and revamped Afreum Cash will continue to demonstrate the utility of the AFR token, which is the only Afreum token listed on Coinmarketcap, Coin Gecko, and on centralized exchanges (CEXs).

AFRX is the rewards and governance token of the Afreum Ecosystem. You earn AFRX rewards, for example, when you stake tokens in Afreum Save. AFRX is also traded on the Stellar DEX. AFRX tokens are used as collateral when you submit proposals in Afreum DAO. Your AFRX holdings can also be used to vote for DAO proposals in Afreum Vote.

One of the most misunderstood aspects of the Afreum Ecosystem is our flexible and stable country tokens. "A" tokens such as AEUR or ANGN are flexible tokens. They have no relationship with the underlying fiat such as Euro (EUR) and Naira (NGN). "A" tokens act as a speculative investment layer allowing you to "bet" against the related fiat. For example, if you think ANGN will go up against NGN, you hold it instead of NGN.

"S" tokens such as SEUR and SNGN have the same value as the underlying fiat and can be acquired and redeemed for the equivalent USDC value of Euro or Naira on the Afreum website. "S" tokens are fully backed by 80%-100% USDC reserves, with the balance backed by XLM. "S" token acquisition and redemption will launch shortly.

Payments in AFR, "A" tokens, and "S" tokens will be supported in Afreum Pay, a soon-to-launch payments system. For example if in Nigeria, you will be able yo make payments in AFR, ANGN, and SNGN. If you are travelling around Africa you would hold AFR in Afreum Pay, meaning AFR acts as a cross-country payments token. It is up to the user to decide how much of their portfolio is held in AFR and/or various country tokens.

Future apps such as Afreum Remit will also leverage our multi-token Ecosystem to facilitate sending, receiving, and cash out in different tokens. We hope that this gives a useful overview of Afreum tokenomics and explains how the use case for different Afreum tokens will emerge over time.

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Afreum is building a decentralized crypto-based economy on Stellar blockchain. https://afreum.com

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AFREUM

Afreum is building a decentralized crypto-based economy on Stellar blockchain. https://afreum.com