The multi-faceted utility of the WLTH token, as outlined in their litepaper, offers various ways for value accrual. The wide range of token utilities provides an interesting value proposition for token holders.
However, one aspect that I find slightly concerning is the token allocation. A significant portion of the token supply, 21.85%, will be used for public sale without any vesting period. This could result in short-term selling pressure as participants mostly focus solely on immediate gains rather than contributing to the platform's long-term growth. Instead, I would prefer allocating a portion of that supply to enhance Rewards & Incentives or Exchanges & Liquidity, fostering a more sustainable ecosystem.
The use of WLTH as a method of payment also raises some questions imo. Since the token is relatively new, its value is likely to be highly volatile, making it less suitable as a means of payment. Users generally prefer price stability when transacting, which may discourage adoption if the token's value fluctuates significantly.
Lastly, the token's ability to reduce platform carry fees on investment returns is an intriguing aspect of its design. This utility holds great potential, as it can significantly decrease fees from 50% to as low as 10%. However, it's important to consider that carry fees are only applied when the investment is sold or reaches maturity. During unfavorable market conditions or in the early stages of an investment, where no carry has been realized, the token's value in reducing carry becomes negligible. This factor diminishes the attractiveness of staking, especially for short to mid-term investors in a bear market environment. Show Less
