Jul 2, 2021
Global Trust Capital | DeFi Decentralized Investments
Yield, Market Value, and Buy Back.
The Initial Tokenomics of GlobalTrust.Capital
The GlobalTrust.Capital Token is a DeFi protocol designed to give its holders the governance needed to control their Venture Capital investments on the blockchain; and to pool wealth in search of yield by staking value in the GlobalTrust.Capital community.
GlobalTrust.Capital is a DeFi token where participants can deposit value in exchange for consistent rewards, and asset appreciation that you can earn for holding our token and taking part in the growth of our investment portfolio of startups and publicly traded companies.
Consistent Reward payments increase and add to your balance based on the total number of tokens that you hold; also known as a Yield, or Reflection, this is our solution to the troubles caused by the search for profits in volatile asset classes. Our governance token gives you the voice to vote on the investments our community will make with your Ethereum.
We heavily tax sellers in the first phases of the project to reward long term holders, and to minimize volatility by incentivizing the community to hold GlobalTrust.Capital tokens. We use the funds collected through taxation to buy back into the community liquidity pool, to deposit more Ethereum from the contract’s wallet address, and to raise the price of the community asset.
To create scarcity in the market after we deposit more Ethereum into LP, we burn and remove the GTC tokens we swap out for, from the liquidity pool. Buybacks and burns are at regularly scheduled and published events, with the first happening 6 months after project launch.
The more you hold, the more you earn, and the more we invest in new technologies as a community. You will own a stake in the next Unicorn, before the market is aware of its existence, and you will be the vote that decides when we make the investment to own the assets we buy.
Consistent Yield
Consistent Rewards in the form of a yield solves many of the problems that we see in the automated yield farming opportunities found today. Impermanent Loss is a result of staking value in direct competition against early buyers who earn higher rewards. The inability to hold a position due to the pressure exerted by a larger player, can and often will force you to close out what would have otherwise been a profitable operation.
The GlobalTrust.Capital Consistent Reward is based on the number of tokens traded on any given transaction; and we use this fee mechanism to fight off the downward selling pressure that happens when the earliest buyers sell their tokens after earning huge and consistent gains on their GlobalTrust.Capital tokens. We pay the fee charged to sellers as a reflection mechanism to incentivize holders to keep their tokens longer, to earn higher rewards that our GTC Smart Contract will distribute based on the number of tokens held in any given wallet.
The more tokens you hold, the more tokens you earn, and the more votes you control to help decide on any given investment decision that we may need to make as a community.
If you hold tokens, you can vote with them using GTC as a governance token on our Venture Capital DAO, you can swap them for Ethereum, or you will be able to use them to fund your GlobalTrust.Capital Debit Card.
Market Value
Automated Liquidity Pool deposits on UniSwap will guarantee that the GlobalTrust.Capital Token will reward holders on two fronts; we support upward buying pressure on the market price of the token and supply a stable price floor that holders can rely upon, by charging a transaction fee to both buyers and sellers.
We stabilize the market price, and value of the currency and we supply a consistent cushion of liquidity that the contract deposits into the pool once it has aggregated 250 Billion tokens in transaction fees in the contract wallet address.
The fees are simply a mechanism that we use to minimize any opportunity to arbitrage away the value of the underlying GTC Token. The contract will automatically secure and distribute the fees as Consistent Rewards to distribute them to GlobalTrust.Capital Token holders on its own.
The LP Tax, however, will first sell into the pool to obtain ETH that we use to buy back into the pool from the seller’s own funds; instead of paying it out to a panic seller, or short-term speculator, the GTC protocol will tax the seller and use it for a future buyback.
We deposit a consistent stream of Ethereum into the liquidity pool by depositing the transaction fees charged to sellers that we use to swap out of GTC. We use it to strengthen the value of the currency stored on the UniSwap Exchange, so that we can invest our capital into innovative and disruptive technologies for profits that we pay out to holders in Ethereum deposits to LP.
Using the fees to increase the store of value that we deposit into the liquidity pool, we supply upward price support and buying pressure on the price floor of the token. We reduce the supply of our token on every transaction in a consistent manner to deposit more Ethereum that will help increase the price of the token over time.
Your governance token will earn rewards based on the number you are holding in your wallet, and it also grants you voting rights that you can use to decide on any given investment decision that we may need to make as a community.
Over the life of the contract, it will generate and earn transaction fees paid by the Ethereum Liquidity Pool on UniSwap for all the activity that takes place on platform, and it will pay out in the form of UniSwap LP tokens.
These LP Tokens attract unscrupulous actors who use them to liquidate the value stored in UniSwap as the underlying store of wealth for the market. We have gone to extreme lengths to guarantee the community that the safety and security of its wealth is the project’s number one priority.
We programmed the contract to prevent the contract owner from accessing the Ethereum we deposit, and we lock all UniSwap LP tokens into a token vault on Unicrypt. We chose to employ DeFi to improve humanity and we will work endlessly to guarantee our success; GTC technology cannot harm or do no wrong toward humanity.
Finally, we fractionalize the GlobalTrust.Capital (GTC) token into 9 decimal digits that can support smaller denominations as time goes on to ease the exchange of tokens in decimal denominations known as Droplets; the pool of community investment capital is filled up by one droplet of GTC at a time.
Buy Backs, Burn, & Current Total Supply
As the GlobalTrust.Capital Liquidity Pool increases over time, the Current Total Supply of GTC also decreases, providing the holders with the benefit of a solid price floor and a cushion to withstand all short-term price shocks. The aim is to cut the larger drops in prices when holders decide to sell their own tokens later in the game; thus, giving other members in the community the opportunity to take a spot as majority token holders with larger voting, and governance rights.
This mechanism prevents the price from fluctuating wildly with a higher implied volatility as there would be without the automatic deposits of Ethereum to the GlobalTrust.Capital liquidity pool in batched transactions of 125 billion GTC. We divide the 250 billion GTC token in two so we can deposit Ethereum into LP at the real-time exchange rate; half will go into LP as ETH and the other half will be used to offset the value according to the current exchange rate. The other half is used to deposit more ETH into the pool while burning off the tokens received in exchange. These sales, or swaps of GTC into the LP produce a net output of Ethereum that we use to Buy Back GTC and burn what we obtain through the LP Tax.
These considerations try to alleviate the volatility issues we have all seen in the current series of DeFi deflationary reflection tokens, and we have implemented these Tokenomics while standing on the shoulders of giants to help us get to this stage of our journey successfully.
Yes, this contract is an evolutional leap from SAFEMOON, that we have corrected and extended to supply real value and security to our community, our contract does deliver on its promises where others have failed to deliver. We added components into the contract to help our DeFi community stand out as a unique platform that enables its members to take part in the disruptive investments made in the venture capital industry.
The blockchain gives us the power to aggregate our capital and govern ourselves without an intermediary on Wall Street, using proven and decentralized protocols that let us pool our investments democratically; and we can do this without having to rely on an expensive fund manager or a Reddit thread called #WallStreetBets where we brag about our heavy losses.
Most importantly we have built a compliance tool for institutions, and we corrected the errors and security concerns reported on by Certik2 which they found in their audit of other deflationary coins.
Most importantly, we replaced the address of the uniswapV2Router.addLiquidityETHfunction call that is hardcoded in the SAFEMOON source code, and we replaced it by a simple reference to the contract itself, i.e., address(this) so that the contract locks the LP created by the swap to itself forever, we cannot change the owner. This guarantees that the owner of our contract cannot pull a rug out from under the GlobalTrust.Capital community.
This is a community pool that is here for all of us to succeed, and to use to invest in, and govern ourselves, and our venture capital decisions collectively.
Overtime, and as we burn off the supply of GTC, the total amount in circulation will diminish substantially; we buy back and burn GTC to perpetually increase the price floor of our asset. The rate of change is dynamic and dependent on the volume of trades occurring in the GlobalTrust.Capital market.
In our review of the exploits found in the SAFEMOON protocol, we discovered an opportunity in the audit provided by Certik2, and we decided to create a feature out of one of their recommendations for the SAFEMOON contract.
The problem is that the swapAndLiquify function converts half of the contractTokenBalance SafeMoon tokens to BNB, and for every swapAndLiquify function call, a small amount of BNB stays in the contract. This amount grows over time with the swapAndLiquify function calls the contract makes throughout the life of the contract. The Safemoon contract does not have a method to withdraw these funds, and the contract locks BNB in the Safemoon contract forever without ever adding it back into LP to help the growth of the community’s value.
We took the correction as an opportunity to use the Ethereum stored in the contract as the community’s friendly whale wallet for Buy Back and Burn operations that we will conduct throughout the life of the project.
As the balance of Ethereum builds up into the GlobalTrust.Capital Token contract with every call to swapAndLiquify, we will deposit The Ethereum stored in the contract into the liquidity pool, and we will swap it for GTC tokens that we will send to the Ethereum Burn Address to reduce the total supply of GTC in circulation. We will continue buy back and burn operations until the total supply of GTC in circulation reaches 1 trillon GTC.
Initially there will a large supply that will create a large and vibrant community of participants who can contribute to, and vote with our community to invest in and distribute our venture capital together. The hyper-deflationary attributes, and the LP buybacks programmed into our contract will lend to the increasing value of the community’s market price which will incentivize sellers to dump their GTC prematurely causing the price to drop. We have implemented a tax structure that we believe will help our community prevent early sellers from profiting from our joint efforts. We will use a dynamic tax that will decrease over time to reward those of us in the community who hold out for long term gains. We will execute the following Anti-Dump Dynamic LP Tax Strategy to incentivize Long Term Holders:
· First 6 Months: 25% LP Tax
· Month 6–12: 18% LP Tax
· Month 12–18: 10% LP Tax
· Month 18–24: 6% LP Tax
· Month 24–48: 4% LP Tax
· Month 48–60: 2% LP Tax
· Month 60 — beyond: 1% LP Tax
The LP Tax Schedule above is IN ADDITION TO the 2% Reflection & 2% Venture Capital tax charged to every transaction made in GTC. The message we hope to convey with this schedule is that the team behind this project is committed to its long-term capital success and capital appreciation. We will publish the final dates for all events at the project launch. We expect that the development of the DAO Protocol will serve the community and allow us to automate the remaining governance functionality we hope to achieve in future phases of the project.
Venture Capital
The GlobalTrust.Capital Community is based on a theoretical foundation of mathematical principals known as Quadratic Funding; an idea from the school of liberal radicalism which expresses the concept that everyday people have the absolute power to organize themselves in a decentralized manner to decide what is the best way to distribute resources for the benefit of everyone in society; without regulation, authoritarian tyranny, and/or corruption.
Quadratic Funding is not a new concept; albeit many modern-day academics and philosophers are exploring these ideas which are gaining popularity from within the Ethereum community itself. However, it was a theory conjured up many thousands of years ago by Aristotle, a philosopher in Ancient Greece. Alexander the Great himself learned from his teacher Aristotle, that the foundation that Quadratic Funding relies upon: “the whole is greater than the sum of its non-rigid parts” 3, would help him expand his empire to heights that the known world had never imagined.
“Citizens make public goods contributions to projects of value to them. The amount received by the project is (proportional to) the square of the sum of the square roots of contributions received. Under the “standard model” this yields first best public goods provision. Variations can limit the cost; help protect against collusion and aid coordination.”4
The primary goal of the GlobalTrust.Capital token is to use the mathematics of Quadratic Funding on a social level at scale to create a liberal funding regime for collective goods. All of us have heard of and understand social engineering to do harm, to steal bank accounts, Bitcoin private keys, and Facebook passwords to uncover untruths between lovers. Our community will now socially engineer a solution to the efficient allocation of capital in an ever-increasing irrational market. We will collectivize the governance of Venture Capital to signal a clear and present message to the global financial markets that we stand united to take control of the deployment of our capital on our own terms.
The Quadratic Funding approach that we are using and asking you to support and buy into solves a couple of basic problems that happen in society today; some argue that social programs like welfare and social security are nothing more than inefficient allocations of capital that underserve the populations they are meant to help. It is obvious after all, that no one obtaining government aid can obtain everything they need. A 401k is not an efficient vehicle to obtain generational wealth, for example.
Others argue that the benefit provided by centralized social programs contribute to the problem of free riders who obtain a social benefit from these programs without ever contributing to them in the first place. The problem being those contributors to these social programs, who legitimately want to do good for society or save for retirement, have a limit to the impact their contributions can make; a RothIRA caps your tax-free gains just the same.
Contributions to a goal, made by one person are linear in nature; that means that it is just not enough capital to help everyone. There must be some accelerant pumped into the contribution equation to turn it into an exponential function that can serve the members of an investment community.
“In a standard linear private market, the funding received by a provider is the sum of the contributions made by the funders. In our “Liberal Radical” (LR) mechanism, the funding received by a provider is the square of the sum of the square roots of the contributions made by the funders. Holding fixed contribution amounts, funding thus grows with the square of the number of members. However, small contributions are heavily subsidized (as these are the most likely to be distorted by free-riding incentives) while large ones are least subsidized, as these are more like private goods. Under the standard selfish, independent, private values, quasi-linear utility framework, our mechanism leads to the utilitarian optimal provision of a self-organizing ecosystem of public goods.” 4
The GlobalTrust.Capital token is borrowing an idea called Quadratic Vote Buying to figure out which individual preferences and actions we should take to efficiently distribute our capital to invest in our future to profit from our communal venture capital fund together.
To bring about the venture capital profits that we all desire, we propose that you buy the votes in the GlobalTrust.Capital Community which pay out at the square of the votes bought.
In large groups of people, the math proves that Quadratic Funding approximates the best decision needed to distribute resources to finance a public good like the investment of capital to help the members of our community earn substantial profits.
Mathematically, academics model the ideas we have presented using the variable QV to explain how well this works for the people in society to extend to applications where a simple yes or no vote just will not do.
We must supercharge what we invest in collectively, and we will now try to explain to you how it works in simple terms; you can skip the math and just scroll to the pictures after this next section if you prefer.
This equation states that to generate the Funding F needed to capitalize a common good (p), and for every idea we have for things p in some random set of P good things to do, we as a society of citizens C, who choose to contribute some value worth i dollars, to pay for these common good things, p can maximize what we invest in using a flexible version of Quadratic Vote Buying QV to express that our combined investment to this cause has the mathematical impact of squaring itself as we add our contributions together using a percentage that the GlobalTrust.Capital SmartContracts has been programmed to contribute to our collective cause; the funding received grows as the square of the community size.
The more GlobalTrust.Capital you invest in, the more GlobalTrust.Capital you transact with, the stronger our community gets and the more collective power we obtain to earn substantial profits from our collective investments governed by the community.
The GlobalTrust.Capital token will distribute 2% of every transaction towards the Venture Capital we deploy to invest in entrepreneurs and small business who apply for funding and investment from our community.
The more you hold, and the more you use GlobalTrust.Capital, the more you contribute to our cause and our community, and the more you earn to help you and your family earn long term wealth while taking part in something that is larger than us all.
GlobalTrust.Capital ecosystem Tokenomics & initial Liquidity Event
We will launch a hybrid pre-sale and fair launch of the GlobalTrust.Capital token on August 1, 2021; and after minting one-quadrillion tokens, we will burn one-third of the total supply (333 trillion GTC) to the Ethereum Dead Address at 0x000000000000000000000000000000000000dEaD to destroy a part of our supply per the norms of the crypto culture and community.
We decided on a hybrid approach due to several reasons that we feel lead to unfair distributions of tokens; the many projects that we have studied while coming to the decision resulted in an excessive accumulation of tokens amongst whales who could aggregate a large float of tokens at lower prices at the expense of those without an equal amount of funding. We have seen the effects of a project with a large presale and an immediate flood of sellers on opening day; neither situation delivers an acceptable outcome to the community of holders.
We needed a reasonable amount of Ethereum to set up a price floor that we could use as a bottom for the exchange rate we want to set up for a fair launch opening day range for anyone in the public with the desire to take part in this offering.
As a team we decided that the only fair way to do this was to invest and accept a small, but reasonable number of tokens in exchange for a small contribution of Ethereum into the liquidity pool. We decided as a community, albeit a small one for now, that 0.5 ETH for 250 Billion GTC, and capped to 200 friends and family/pre-sale investors would be the fairest approach to a difficult issue.
All team members and early investors were required to contribute 0.5 eth as participation in the launching of the project. There were no further considerations provided to any of the aforementioned parties ensuring complete fairness. We decided that getting in early was enough of an advantage for us and we hope that you can appreciate our logic behind this complicated topic.
Moving forward we decided to hold back 120 trillion tokens to carry out a few things; we want to keep 60 trillion on reserve to add liquidity to major exchanges when we qualify for a listing on Binance or Coinbase, for example, and we kept 50 trillion to finance the pre-sale of tokens to the first 200 holders who whitelist their addresses with our team.
Of the remaining amounts, if any, we will use 10 trillion for air drops to increase the number of holders in the community, while the remaining amount will either go on deposit into UniSwap as LP with the ETH collected in pre-sales, or we will burn it off, by sending it to the Ethereum Dead Address if any remain from the added injection to LP.
The remaining 547 trillion GTC of total supply will go into the UniSwap Liquidity Pool, and we will lock all UniSwap LP tokens on Unicrypt for 60 months. After 60 months, we will use UniSwap LP tokens to reward holders who have held the longest with small amounts worth of liquidated LP tokens. Instead of pulling a rug, we’ll just give you a piece of the rug if you just stick with us to help us get Wall Street on the blockchain. The governance and issuance of these rewards is the responsibility of and left to the direction and sole decision of the GTC DAO Protocol before release.
All remaining GTC will burn to the Ether and that will begin the GlobalTrust.Capital community riding on the payment infrastructure provided by our hyper-deflationary Venture Capital token.
The following total breakdown in tokens, for each of the segments shown in the chart above is the total GTC supply:
GlobalTrust.Capital Protocol
GlobalTrust.Capital uses four simple functions on every trade: Reflection + Investment + LP Buy-Back + Burn; we tax transactions a dynamic fee that we split in 3 ways:
· 2% fee Redistributed to all token holders as a Reflection
· 2% fee Venture Capital Investment pool that we govern with the GTC DAO protocol.
· 1% to 25% Dynamic LP Tax Buy Back and Burn designed to incentivize holders with a tax on each transaction when someone sells their GTC tokens; the contract will buyback GTC and swap from the LP to increase the price floor by depositing the ETH received in exchange. After this transaction swap, we burn the acquired GTC tokens received by the contract as described.
Join our Community DAO
Thank you for taking the time to consider the opportunity we are offering, if you’re interested in making your voice heard in the Venture Capital community on the blockchain and you want to participate in the GTC DAO Protocol then join us on https://t.me/GlobalTrustCapitalDeFi
References
1 Ethereum Whitepaper https://ethereum.org/en/whitepaper
2 Certik SAFEMOON Security Audit https://certik.org/projects/safemoon
3 Metaphysical, Aristotle https://pubmed.ncbi.nlm.nih.gov/24406559/
4 Liberal Radicalism: A Flexible Design for Philanthropic Matching Funds, Vitalik Buterin, Zoë Hitzig and E. Glen Weyl https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3243656
