AGA Whitepaper
AGA 3.0: The Evolution of AGA
Overview
AGA is a community-run DAO with a very simple business model.
Use treasury to generate passive income. Profits are split between treasury growth and community (token holders).
As originally founded in 2021, AGA generated profits via bitcoin mining. Unfortunately, cost of electricity and depressed bitcoin price did not allow for expected growth. As a nimble organization, AGA migrated to Proof of Stake (POS) as the driver for passive income. With full community support, this change occurred in Q1, 2023.
POS overview
Proof of Stake (PoS) has emerged as a popular consensus mechanism. PoS enables token holders to earn passive income.
First, let’s understand what PoS is. In a PoS system, the network validators or “stakers” are chosen based on the number of tokens held in the treasury wallet. Validators are responsible for validating transactions and adding blocks to the blockchain. In exchange for their services, validators receive rewards in the form of additional tokens.
To participate in PoS, a certain number of tokens must be held in the treasury wallet, known as the “staking threshold.” Once we meets the staking threshold, we can delegate to a validator or a validator pool. Delegation allows the earning of staking rewards without running a validator node yourself.
The first step to earning passive income via PoS is to choose the right token. Not all tokens offer staking rewards, and the rewards vary depending on the token. Some tokens offer high staking rewards, but the token price may be volatile, which means you may incur losses if the token price drops. On the other hand, some tokens offer lower staking rewards, but the token price is stable, which means you can earn a consistent passive income. It is essential that the AGA community collectively agrees to choose the right token that fits our project’s risk appetite and investment goals.
Once the token is chosen, the next step is to purchase it from a cryptocurrency exchange. All token transfers are executed via official treasury wallets for absolute transparency.
The next step is to delegate the tokens to a validator or a validator pool. Validator pools are groups of validators who combine their resources to increase their chances of being selected to validate transactions. Validator pools charge a fee for their services, which is deducted from the staking rewards. AGA chooses reputable validator pools with good track records.
Once our community’s tokens are delegated, we sit back and relax. Earning staking rewards starts immediately. The staking rewards vary depending on the token and the network conditions. The staking rewards are typically between 5% to 20% per year but can go considerably higher for new or risky tokens. However, it is important to note that staking rewards are not guaranteed, and they can vary depending on the network conditions.
In addition to staking rewards, some tokens offer additional incentives for staking. For example, some tokens offer governance rights, which allow token holders to vote on network upgrades and proposals. Some tokens also offer liquidity mining programs, where token holders can earn additional tokens by providing liquidity to the token’s trading pairs on decentralized exchanges.
In conclusion, PoS crypto tokens offer an excellent opportunity for our AGA community to generate passive income. By simply holding the tokens in our treasury wallet and delegating them to a validator or a validator pool, together we earn staking rewards and other incentives.
However, it is important for our community to do research and choose the right token that fits our investment goals and risk appetite. With the right tokens and reputable validator pool, AGA can earn a consistent passive income for our community.
Importance of community & DAO management
As mentioned earlier, our DAO’s philosophy is “Use treasury to generate passive income. Profits are split between treasury growth and community (token holders).”
The community -> “YOU” make all decisions.
Passive income generates profits in which the community decides how to distribute. Some will go direct to $AGA token holders (via burns or airdrops or token distribution). Some will be re-invested in new PoS tokens staking opportunities. Some may be used to grow the business to run our own nodes, where we can generate delegation fees.
All financial decisions are DAO managed.
Tokenomics
AGA token
Circulating supply as of 5/6/2023: 4,500,000
Minted 10,900,000 less 6,000,000 Burned
Etherscan https://etherscan.io/address/0x2D80f5F5328FdcB6ECeb7Cacf5DD8AEDaEC94
- ERC20:0x2d80f5f5328fdcb6eceb7cacf5dd8aedaec94e20
- Polygon:0x033d942A6b495C4071083f4CDe1f17e986FE856c
- BSC:0x976e33b07565b0c05b08b2e13ad3113e3d178d
AGAr token (loosley coupled to AGA via liquidity pools)
- ERC20:0xb453f1f2EE776dAF2586501361c457dB70e1ca0F
- Polygon:0xF84BD51eab957c2e7B7D646A3427C5A50848281D
- BSC:0x4ec16da4c9007462de151c0da9f5426c69978a7b
Current POS holdings
AGA expanded into POS mining by transferring 2.5 BTC & sale of bitcoin miners to staking tokens and delegated to All-Nodes (a proof-of-stake hosting facility) as well as to direct chain. All staking is viewable on company dashboards (sample dashboard as of May 5, 2023).
The initial investment is split amongst the following tokens:
- ROCKETPOOL ETH($ETH, APR: 6.50%, Fee:$120/annual)
- HORIZEN ($ZEN, APR: 6.6%, Fee:0%)
- GNOSIS ($GNO, APR: 15%, Fee:$12/annual)
- COSMOS ($ATOM, APR: 23, Fee:$5%)
- OSMOSIS ($OSMO, APR: 23%, Fee:5%)
- EVMOS ($EVMOS, APR: 103%, Fee:5%)
- JUNO ($JUNO, APR: 35%, Fee:5%)
- TERRA LUNA ($LUNA, APR: 16%, Fee:5%)
- STRIDE ($STRD, APR: XXX%, Fee:5%)
- TERITORI ($TORI, APR: 246%, Fee:5%)
- POCKET ($PKT, APR: 24%, Fee:$184/month)
Next steps — spinning up AGA nodes
Running our own crypto staking node offers several significant benefits that can enhance our ability to generate community passive income.
First and foremost, running our own node gives us greater control over our staking rewards. When we run our own node,we don’t need to pay fees to a third-party validator pool, which can significantly reduce the fees we pay and increase our overall rewards.
Additionally, running our own node increases the security of the staked tokens. When we delegate our tokens to a validator pool, we are trusting the pool with our tokens. If the pool is hacked or experiences any security issues, our tokens could be at risk. However, running our own node means that we are in complete control of our tokens, which reduces the risk of any potential security breaches.
Running our own node also allows us to participate more directly in the governance of the network. As a node operator, we have a say in network upgrades, proposals, and other decisions that can impact the network’s future. This level of direct participation can be empowering and allow us to shape the direction of the network we are invested in.
Delegation: If people delegate their crypto tokens to our staking node, we can earn a portion of the staking rewards that are distributed by the network. By running our own staking node, we can attract delegators who are looking for a reliable and trustworthy validator. As more people delegate to our node, our chances of being selected as a validator increase, which means we can earn more staking rewards. Additionally, we can charge a small fee for our staking services, which can generate additional passive income. Overall, running a successful staking node can be an addition & lucrative source of passive income.
Running a node is not without costs, so we must balance the additional revenue generation with the investment in time and resources necessary to operate a reliable and secure node.
Overall, running our own crypto staking node offers increased rewards, delegation revenue, security, governance and more.
Version
Authors: Tomasz Wojewoda, Agnieszka Madetko, Rick Alexander
Date of last update: 06 May 2023
Version: 1.2
