According to Wikipedia, a social experiment is a type of psychological or sociological research for testing people’s reactions to certain situations or events. Such situations can include the way people deal with their financial resources, including cryptocurrencies.
ChadsVC is a blockchain-based project tooled by a conceptual approach to the popular “Chad vs Virgin” meme. With a 4Chan-like jargon and plenty of meme references, the platform is based on a burn curve function that rewards CHAD token holders by “punishing” other users who sold or transferred their tokens.
What Is ChadsVC?
ChadsVC is a soon-to-be NFT platform build first as a social experiment where users climb up the ranks by accumulating the largest percentage of the CHADS token supply. The CHADS token is a deflationary coin utilizing a novel burn curve mechanism.
Within this mechanism, users who sell or transfer their CHADS are punished by the system, which burns a percentage of their CHADS. This percentage of “loss” is determined by a curve mechanism, which means the lower the price of the sale, the more CHADS are burnt.
The total supply of CHADS is deflationary, decreasing with every transfer. The only action that does not burn CHADS is to buy CHADS, which is the mechanism’s exception. The token has a fixed supply of 69 million units.
51% of burn CHADS will be sent to the burn address, while the other 49% of the tokens will be held in a reserve account and distributed between selected users.
Dig Into It
Once the total supply of 69 million is minted, it means that it is the only time CHADS will ever be created. Hence, the deflationary nature of the token leaves potential buyers and holders in a constant state of alert, as the supply will always be decreasing.
ChadsVC is building its structure on top of Polkadot. In the first stage, the project is launching a provisional ERC-20 token, which will be swappable 1:1 for a mainnet token on the Moonbeam Network upon launch.
Interested users can get CHADS using three different ways. The first is to join the ChadsVC Discord and win one of their competitions. Second, users also can join the project’s initial liquidity pool, whose details are still a bit unclear. The last and easier way is to purchase CHADS on Uniswap.
Explaining the Burn Curve
The project relies on an innovative burn curve mechanism, which is calculated using Uniswap V2 price oracle. This price oracle is based on the 1-hour time-weighted average price of the CHADS/ETH pool in the platform’s pool within Uniswap.
The price multiple determines how many tokens are burnt on each sell or transfer of CHADS. This price multiple is calculated using the current price and the initial listing price. The project rewards CHADS holders which stood firmly in their convictions, as a true Chad (alpha male) does.
After all, 51% of burnt CHADS are sent to the burn address, while 49% are sent to a reserve account. These reserved CHADS will be distributed eventually for a selective number of users (true Chads) every week.
Cross-Chain AMM Project
While CHADS are tokens that still have value, they must be considered primarily as a social experiment, according to the project’s team. This way, intelligent investors will see it more as a long-term conceptual token than as a high yield short-term investment.
Thus, ChadsVC is just one facet of a bigger monster. The token is part of a set of aligned projects, one of them called ChadSwap. This other project aims to build a cross-chain Automated Market Maker (AMM), where users will be able to flow smoothly across different blockchains in a decentralized way.
The project is developing its structure on the Polkadot ecosystem. For those unaware, Polkadot aims to be the internet of blockchains, permitting users to enable cross-chain transfers of any type of data or asset, not only tokens.
As the project is focused on developing a solid structural and economic foundation, its materialization will be divided into three distinct phases.
The first phase of ChadSwap is already in course, started with a liquidity mining program. In this program, liquidity providers will be able to get STACY tokens (ChadSwap governance token) by staking LP tokens.
How Did the Experiment Start?
So far, there is no available information about the identity of the ChadsVC team. According to their website, they claim to be an anonymous group consisting of crypto traders, designers, and other “Chads”.
The factual origin of the project was a 4chan post from September 5th, 2020, written in the /biz/ board. As the idea started to gain size and credibility, the project’s website started to get some attention within the crypto community.
The initial community managed to gather over 5k members, so the team managed to raise their initial 150 ETH. All liquidity brought by this first bootstrap is locked in a Uniswap smart contract, where it is meant to stay forever.
The project was launched on September 13, introducing the unique mechanism of a deflationary crypto coin as a social experiment.
The platform aims to be the first NFT platform to build on Polkadot, specifically on the Moonbeam Network. They announced that specific details about their novel NFT Farming platform will come up via Medium posts soon.
For those unaware, the Moonbeam Network is an Ethereum-compatible smart contract parachain on Polkadot blockchain. The whole concept behind ChadsVC demonstrates the beauty of a decentralized ecosystem, where uncanny ideas can turn into profitable projects within a privacy-first and censorship-free environment.
The ChadsVC project was built as a social experiment using their native CHADS token. This deflationary coin relies on a unique burn curve mechanism, meaning its supply will always be decreasing.
Users who sell or transfer their CHADS have a percentage of their tokens burnt, while CHADS holders who stood firmly are rewarded. In layman’s terms, the platform rewards token holders by “punishing” those who sold or transferred theirs.
Now, bootstrapped by a strong community and a solid amount of liquidity, the idea is developing into an NFT-platform built on the Polkadot blockchain.