Invest in a Token that Beats the Market, but Pay Less?
Maarten Ectors, Decentralisation Lead at Pollen DeFi, breaks down $PLN and the asset pool token.
Most retail investors lose money in the crypto market. When the market goes down and your investment loses, most traditional asset managers keep on charging investors to “manage their money”. Pollen is focusing on enabling communities to create market-beating investments without fees to “manage your money”.
How to beat the market?
No individual investor always beats the market. If they say they do, they are either lying or running a Ponzi scheme. But what if a community of investors could join forces to beat the market? Pollen DeFi allows individual investors to learn from one another, whilst at the same time competing to show their approach is superior. The platform’s Pollenators are individual investors, like you and me, who balance virtual portfolios of crypto tokens to maximise gains. They only need a small number of Pollen tokens to do so. If their portfolio makes a gain, their reputation goes up. If their portfolio outperforms others consistently, they become leaders on the Pollen leaderboard. They will be rewarded with extra Pollen tokens, if they outperform others. But it does not end there. Far from it!
Pollen token holders can also delegate their PLN towrads other Pollenators. If these Pollenators successfully manage their portfolios, your PLN stake goes up in value, and you will pay a small fraction of the gains to portfolio manager. If you delegate to a weak Pollenator who doesn’t manage the portfolio successfully, you’ll also have to pay your share of the losses. Top Pollenators are encouraged to manage portfolios successfully by earning PLN as a reward, thus both Pollenators and Delegators are both enouraged to work within the best interest of the protocol.
Both the Pollenators and the Delegators provide valuable signals about the market. Pollen DeFi is working on a new concept: community-driven asset pools. An asset pool is like an index in which many tokens can be held. Traditional indexes either follow an automated investment strategy, e.g. the largest 100 UK companies via the FTSE100, or have an active team of index managers managing the investment for you. Unlike traditional indexes, Asset Pools are using the signals from the Pollenators and Delegators to automatically invest in asset portfolios. The top Pollenators will have greater influence on how these asset portfolios are composed. If the asset pool makes a gain, then again a minority part of the gains will be shared with the top Pollenators.
So the top Pollenators can gain from balancing their own portfolio, from getting a share of the profits from delegators and from the asset pools who allocate based on their signals. In theory this means that the best Pollenators can earn a lot more by being on Pollen than by managing their own investment portfolio somewhere else. As such the best of the best crypto investors will be on Pollen and anybody can see what it is that makes them so great.
Buying a token to beat the market
Communities of investors will shortly be able to create asset pools with an associate token. Any investor buying the token, will invest in the underlying assets and their investment will automatically be balanced based on the signals from the Pollenators. Investors will be able to suggest changes to the asset pool, e.g. add more tokens, and vote on them. The outcome should be asset pools and pool tokens which beat the market. So asset pools are better than traditional indexes, which track the average investor, because they are tracking the top investors.
Beat the market and pay less
Unlike traditional actively managed investment products, you do not pay any asset manager when your investment loses money. There is no fee to “manage your money”. Since you only share a minority part of your gains, you do not pay if an asset pool does not make any gains.
Are you a member of an investment community?
The Pollenators and Delegators will shortly be able to manage their virtual portfolios on Pollen.id. We are looking for communities of investors who want to work with the Pollen asset pool team on launching the first community-governed asset pools. If you are part of a community of investors that would love to have its own pool token, then please reach out. We are especially interested in Avalanche-only token communities because they will be the first to have a fully working solution. The others will come shortly afterwards.
About Pollen DeFi
Pollen DeFi, is a first of its kind decentralized asset index where the community holds all the power. Decentralized finance is designed to be by the people, for the people, and Pollen DeFi is acknowledging this by building the first, truly decentralized platform for managing tokenized asset pools. The merit-based DAO provides a reputation-based governance protocol with incentives that leverage the community’s collective wisdom to curate asset pools. In this system, all users of the platform stand to benefit from the contribution of the best-performing participants.
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