PHAETON’S ROLL-OUT STRATEGY — №6 Phaeton Decentralised Finance and Exchanges
6. PHAETON DECENTRALISED FINANCE AND EXCHANGES
This Chapter is the final section of the six levels of Phaeton’s roll-out strategy. In analysing the Blockchain Decentralised Finance (DeFi) market adopted by popular Blockchain platforms, Phaeton has established DeFi models in line with our ethos and ESG mission. These models include a Carbon Credit Exchange and an ESG Bond Exchange. Each of these exchanges allows Phaeton to promote and finance our internal projects while still offering third parties to launch their projects. In addition to these exchanges, Phaeton will hold several staking nodes that provide a passive income through our roll-out of datacentres. In these models, Phaeton’s business goals are to generate cash flow through transaction fees and passive income, which ultimately benefits our shareholders and token holders.
CARBON CREDIT EXCHANGE
Current CO2 emissions are estimated at 55 billion tonnes annually. Even if we cut this down to zero in the next decade, estimates put the long-term warming impact at 1.5 to 2C. It will have dire consequences such as changes to sea level, food production, and public health. The rate of increase in emissions far outstrips the pace at which we can incentivise reduced emissions. Globally, our ability to generate viable carbon credits is less than 25% of our current annual pollution levels, and there are decades of the backlog. In alleviating this problem Phaeton has partnered with Carbon Credit industry experts and a Corporate Accounting Group to establish a Carbon Credit Exchange where the public can trade Carbon Credit NFTs.
Carbon Credits Team
The Carbon Xchange team is made up of directors representing the partnership. The directors include Matthew Lewis and Damian Robson and supported by industry experts namely, Mark Imrie and Mark Lewis. The team has experience in policy, technical and commercial capability in agriculture, lands, and water. The Carbon Credit Exchange will operate independently and as Phaeton Sidechain.
A carbon credit is a digital certificate of one tonne of CO2 each year. In Australia, these are defined as ACCUs (Australian Carbon Credit Units). There are two main types of carbon credits: regulated and voluntary. The regulated market consists of credits generated and purchased under cap-and-trade, which expires if unused. In contrast, voluntary credits expire when an individual or organisation decides to spend the credit to offset a unit of pollution. While the regulated market represents the lion’s share of the carbon credit market today, there are significant challenges as we advance with the regulated sector.
By tokenising Carbon Credit Units into TNFTs (Tangible Non-Fungible Tokens), we can accelerate the trade of emission-reduction credits through global markets, real-time transparency, instant settlement, increased liquidity. Numerous other synergies come from being tied to a digital currency ecosystem. These TNFT Carbon Credits can be minted and placed on the Exchange to be traded by investors.
PHAETON ESG BOND EXCHANGE
In line with Phaeton’s ethos of positive social impact, Phaeton is establishing an Environmental, Social, and Governance (ESG) Bond Exchange powered by Blockchain technology. Since the introduction of Blockchain, there has been a significant number of DeFi platforms. These platforms range from traditional bank transactions, lending and borrowing to payment solutions. With so many Defi platforms in the market, Phaeton decided to focus on a specific sector, “the Bond Market”. It will help finance Phaeton’s projects, such as Green Modular Datacentres, Smarter Housing and Solar Farms. However, the Phaeton ESG Bond Exchange is also open to the public and governments.
ESG Bond Team
The ESG Bond Exchange team is headed by Ron Forlee and Dr Ravi Chamria. Both Ron and Ravi have extensive experience in finance and financial instruments.
Basic functions of Bonds
Bonds represent financing for long-term projects. Companies issue bonds for acquisitions and large purchases instead of accruing debt from a traditional capital source. Similarly, governments often fund costly infrastructure projects with bond investments. The bond market plays a significant role in ensuring financial stability for both buyers and issuers. When the stock market hits a correction, the bond market is a more stable fallback for generating wealth.
The Bond Market
The bond market is often called the debt market, fixed-income market, or credit market. In addition, the bond market is segmented into two different markets, namely, the primary market and the secondary market. The primary market is the “new issues” market in which transactions occur directly between the bond issuers and the bond buyers. Whereas in the secondary market, securities that have been sold in the primary market are then bought and sold at later dates.
One of the main features in Phaeton is the staking PHAE tokens which can generate a passive income. So, what is staking? In simple terms, consider it as money deposited in an interest-bearing savings account. Staking is a part of the security mechanism of the blockchain network. Multiple avenues are available for staking tokens, but a digital currency wallet is the most popular one. Earning staking rewards is as easy as holding your digital coins on an exchange.
Staking nodes team
The deployment of Phaeton’s Staking Nodes falls under the leadership of Chai Shepherd and Ghan Vashishtha and is supported by a strong team of 28 staff members.
How do staking nodes work?
Phaeton’s staking mechanism is powered by a concept called Delegated Proof of Stake (DPoS), a tweak on the idea of Proof of Stake (PoS). Randomly chosen Staker’s validate blocks on the protocol and get a return on the coin staked. The participants who stake large amounts of PHAE tokens have a higher chance of making it the next block validator. The objective of this mechanism is to encourage more people to participate as Node Operators. The staking is initiated through Phaeton’s Artemis Node, or Phaeton’s Helious Deployer t can be under Chapter 2, Phaeton Technology.
Phaeton does not have long periods for PHAE tokens to be locked, so anyone can un-stake and re-stake tokens at will. However, there are safeguards for preventing individual staking pools from accumulating too much power. Furthermore, the protocol is entirely autonomous, thus masking these operational activities from the fraudsters with malicious designs. Some other features include:
- Phaeton staking pools; To enhance the chances of validating blocks and receiving rewards, coin holders might merge their coins to form a staking pool. Rewards are shared proportionally with their contributions.
- Governance of PHAE coin: All staking interactions on the Phaeton Blockchain ecosystems are done through PHAE, the native coin governed by the validators part of the DPoS community. It empowers holders of PHAE coins in real terms regarding the governance of the platform.
The price of PHAE tokens will be proportional to supply and demand. It means that as the development of the Phaeton ecosystem continues, the token price is likely to stabilise. Generally, the price will increase with a random correction, which investors can view as an opportunity to get in.
The ecosystem has been designed to keep the release of tokens slow. In addition, mechanisms are in place to keep inflation in check, which will keep the demand high. Like any project, the early stage is the perfect time to stake and maximise your returns. There were numerous instances when early Staker’s in the project garnered 500–600% or even more returns, and there is every chance that the initial stage investors to Phaeton Blockchain will earn big-time rewards.