D-ETF

D-ETF is a decentralized exchange traded fund managed by a fully decentralized autonomous organization, or simply DAO. The main goal of D-ETF is to offer a DeFi tool that gives token holders the opportunity to become familiar with great projects in the cryptocurrency sector with a single token.

The D-ETF has a dividend yield structure, meaning a transaction fee of 3% of the total daily volume is evenly distributed between existing token holders and the intrinsic value. This structure rewards long-term holders and increases intrinsic value.

In general, the D-ETF intends to become an excellent basis for both active and passive investors who want to gain access to multiple assets with just one token.

D-ETF vs traditional ETFs

Traditional financial markets have been trying for several years to bring several ETFs for bitcoin and cryptocurrencies to broad markets. Some of them have been approved in small foreign markets, and cryptocurrency ETFs located in the United States are likely to receive final approval in the 4th quarter of 2021. This is a step towards wider acceptance of cryptocurrencies, which is ultimately very important for the market as a whole. Unfortunately, the traditional ETF model is broken.

Traditional ETFs are centralized and can only be traded during certain business hours. Due to the centralization and strict financial regulation of traditional ETFs, both spot and futures contracts are subject to strict regulatory requirements. These high requirements are expressed in minimum capital, KYC and, not to mention relatively high commissions. This limits the participation of many potential countries and organizations.

Another risk factor for traditional ETFs is limited trading hours since most market-related news occurs outside of business hours, which makes investors extremely susceptible to volatility and congestion and unresponsive to major market changes.

These points mentioned above are making the traditional ETF model inefficient and outdated. D-ETF, on the other hand, has:

• Unlimited tradeability, thanks to decentralization and smart contracts;

• No minimum investment;

• The fully decentralized control of funds;

• Community voting regarding placement of funds;

• Dividends;

• Full transparency.

And last, but not least, funds are owned by you.

How does D-ETF works?

D-ETF was created to facilitate broad access to a diversified portfolio of cryptocurrencies with a single token. The D-ETF also provides token holders with the opportunity to participate in tokens included in the ETF. To make this possible, a self-acting DAO was developed to execute simple buy and sell orders.

Token holders with 10,000 D-ETFs or more can offer, delegate and vote for tokens that should represent the intrinsic value of the D-ETF. The "Voting proponent" will choose which two tokens should be exchanged for each other, as well as determine the duration of the voting period - from 2 to 14 days.

In order for the proposed vote to be recognized as valid, it must gain a total of 4 million votes or more. In addition, a majority of votes is required to implement the proposed transaction. If the above criteria are met, the DAO will automatically conduct a transaction and replace the existing value with a new one.

Participation in the voting process does not require any costs. To improve the quality of token offerings, their number was limited to two times a week.

The intrinsic value of the D-ETF token is represented by several tokens selected by the community behind the DAO, which will be instantly displayed in the "market allocation" area on the official D-ETF website. To gradually strengthen the intrinsic value, a transaction fee of 1.5% of the total volume is constantly added every time the value reaches 100,000 D-ETFs. The idea is to bring the trading value in line with the intrinsic value, but ultimately the decision is made by the market. The intrinsic value should be considered as a general combination of the selected tokens and the smart contract protocol.

Save and get dividends

The structure and concept of the D-ETF are designed to save money and receive dividends for holders. Instead of buying several tokens individually and paying for gas, which is structured as a fixed fee combined with a variable percentage, you can simply buy a D-ETF. By combining transaction fees on a weekly basis and making larger purchases, D-ETFs undermine the impact of a fixed fee.

D-ETF users also receive a reward for owning a D-ETF, as 1.5% of the volume of weekly transactions will be immediately divided among token holders. We have enabled this feature to create an additional initiative for long-term position retention, as this is ultimately one of the key pillars of the value of the D-ETF.