We frequently see the creation of new projects in the blockchain industry, but how to find a project of value? The best crypto initiative must balance ambitions, market disruptive forces, and innovation.
In order to survive in the blockchain sector, it is essential to make big bets. At the same time, however, it is necessary not to promise the market more than what you can deliver. HODL Vault is a new project that will go completely live in the coming months following a high interest from crypto enthusiasts.
This review will deliver relevant information, in an unbiased manner, on the nature of this new initiative. As this is an ongoing project, we will provide readers with any additional relevant information in the future.
The project’s ecosystem
The HODL Vault project revolves around the following pillars:
- Token listing platform: to avoid honeypots and rug pulls, the portal plans to design a robust liquidity vetting process on new listings
- NFT platform: NFTs are changing the way we see digital ownership, and the website will soon feature a marketplace to exchange them
- HODL vault merchandise: the project owners launched a merchandise line linked to the initiative, with proceeds to be bought back and burned
- Rewards calculator: an exciting feature to learn more about recurring rewards, as we will explain in detail within the dedicated section below
- Play to earn games: blockchain and gaming is a powerful duo; the project team is aware of this and anticipates the launch of this new feature in the future.
The initiative comes with several built-in mechanisms that enhance the end-user experience on the platform. For example, an infamous mechanism in the crypto world is coin dumping. From time to time, we notice how the market quote of a coin plummets following a single sell-off transaction. The “Volatility Selling Feature” caps the maximum amount of liquidity an investor can sell at 0.35% of the total supply.
Furthermore, a valid new crypto project needs to prove its security and transparency to the market. Moving a crucial step towards this direction, HODL Vault passed a KYC verification process with IDO-Presales.com.
The benefits of holding crypto liquidity
The whole initiative strongly relies on a rewarding system designed on a series of principles:
- Each buy or sell transaction sees the application of a 14% transaction fee
- Holding liquidity comes with a Binance Coin (BUSD) reward
- The reward is distributed only if the amount of liquidity (or “bag size”) is larger than 1,000,000,000 samples
The 2% of each transaction is bought back and burned, leading to a deflationary system that is oriented to the value conservation of the liquidity. Furthermore, a 1% amount is allocated to marketing and development initiatives for each transaction.
An audited initiative
The project owners have completed a crucial step to operate in the blockchain industry: passing the audit process on your smart contracts. Before examining the procedure, it is necessary to clarify what a smart contract is.
You can think of a smart contract as a piece of code stating the following:
- A condition that needs to be met by a counterparty
- The action to execute in order to conclude the contract.
If you are familiar with the technicalities behind the blockchain world, you will notice how our explanation suffers from oversimplification. However, in our context, the details mentioned above are more than enough to clarify a technical aspect such as this one to a crypto outsider.
Once the conditions of the smart contract are met, the code automatically executes (leading, for example, to a transaction). Because the reliability of a blockchain initiative largely depends on how smart contracts work, an audit process on this aspect is always a good idea.
In November 2021, HODL Vault successfully passed an audit check, which Techrate ran with the following purposes:
- Ensure that the smart contract functions as intended
- Identify potential security issues with the smart contract.
The rewards calculator and the next steps
The project aims to win the favor of less experienced investors too. In this sense, the management team understands the importance of making the calculation of rewards transparent. For this reason, you will find a useful feature in HODL Vault called the “rewards calculator”, which works as follows:
- Earnings calculator: enter your wallet address, and the system will compute the relevant statistics on your rewards
- Rewards estimation: specify the liquidity you own, the daily USD volume, the circulating supply, and the market cap in USD to get a full reward simulation
Not so many reward-based systems in the crypto universe offer this level of information. This sort of initiative helps the market trust the single players in the industry.
While most of the development process is complete, HODL Vault still has big plans for next year. Specifically, it will be interesting to assess the token listing portal (expected by Q1 2022) and the NFT platform (which should go live by Q2 2022).
Our conclusions on HODL Vault
Initiatives such as that of HODL Vault demonstrate the entire blockchain industry is going through a new growth path. While creating a project in this area once did not require particular transparency and auditing, today investors are more risk-aware.
The ambitions of HODL Vault are high and appear in line with the competence and professionalism of its developing team. We will monitor the progress of this project initiative in the future, and, in the meantime, you can check the official website of HODL Vault for more information.