Understanding UTH: Issuance, Functions, and Value Proposition

Don Vegas
4 min readJun 2, 2023

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Introduction to USDToch
USDToch is a comprehensive investment platform that operates on Web3 assets, providing a wide range of investment services, including asset lending, AI-driven wealth management, institutional strategy investments, public chain development, CFD contract quantification, and US stock hedge funds. Our primary goal is to offer investors a secure, efficient, and trustworthy platform for their investment needs.

Introduction to UTH
UTH token holds a pivotal role within the platform’s ecosystem, contributing to its internal growth and development. Its key functions encompass:

Investment Returns:
Holders of UTH tokens can benefit from higher investment returns. Our intelligent investment mechanism prioritizes allocating investment quotas to UTH token holders, ensuring they receive enhanced returns on their investments.

Fee Deduction:
UTH tokens can be utilized to cover a 5% withdrawal fee during profit redemption, with the fee amount being instantly eliminated.

Incentive Rewards:
As a reward for users’ algorithm power contributions to the platform, UTH tokens are granted, along with eligibility for purchasing UTH tokens equivalent to the allotted quota.

UTH Tokenomics
Within the USDToch system, UTH Token serves as the native token of the platform, based on the BNB Chain as a BEP20 token. Apart from its market value, UTH also acts as an anchor asset for algorithm power within the system, determining the cost of algorithm power allocated to user accounts by the platform.

Total supply: 500,000 tokens

Initial supply: 0 tokens

Token issuance mechanism

Roles of UTH — A Comparison with BTC and BNB
Throughout the development of the USDToch platform, UTH plays a fundamental role intricately linked with the platform, from its token issuance mechanism to deflationary scenarios. In an objective sense, as long as USDToch provides ample liquidity for global Web3 asset trading, it can effectively facilitate diversified value accumulation for UTH and significantly enhance its intrinsic price.

Regarding consensus mechanisms

UTH adopts a straightforward and direct value contribution approach (Proof of Cash) to determine token output. This aligns with USDToch’s core business logic, as it provides liquidity to the market while simultaneously rewarding users who contribute to liquidity provision.

BTC employs a heavyweight consensus mechanism and participation method called Proof of Work, which configures and operates nodes to ensure network security. Its primary objective is to maintain network security, with additional rewards derived from transaction fees on the network.

BNB adopts the Delegated Proof of Stake (DPoS) consensus mechanism, where users independently configure a comprehensive network service space on the BNB Chain. The allocation of network rewards, block confirmation, and incentives are determined by the amount of BNB staked by users.

Roles of UTH — A Comparison with BTC and BNB
UTH plays a vital role within the USDToch platform, deeply integrated from its token issuance mechanism to deflationary scenarios. From an objective perspective, as long as USDToch maintains sufficient liquidity for global Web3 asset trading, it can achieve diversified value accumulation for UTH and effectively increase its objective price.

Regarding consensus mechanisms
UTH adopts a simple and direct value contribution approach known as Proof of Cash to determine token output. This aligns with the core business logic of USDToch, as it provides liquidity to the market while also rewarding users who contribute to liquidity provision.

BTC, on the other hand, utilizes a heavyweight consensus mechanism called Proof of Work, involving the configuration and operation of nodes for network security. Its primary focus is ensuring network security, with additional rewards derived from transaction fees on the network.

BNB employs the Delegated Proof of Stake (DPoS) consensus mechanism, where users independently configure a comprehensive network service space on the BNB Chain. The allocation of network rewards, block confirmation, and incentives are determined by the amount of BNB staked by users.

In terms of output mechanisms and fund utilization efficiency
The Proof of Cash consensus mechanism in USDToch allows the platform to provide significant liquidity for global Web3 asset interactions through the funds of USDToch users worldwide. UTH rewards are provided based on the proportion of user contributions to funds and platform value. This creates a strong connection between user funds, platform operations, and the user’s own income, maximizing fund efficiency and generating significant returns for users.

In the case of BTC, a substantial portion of user funds is consumed in purchasing and maintaining network node equipment and other backend functions. The contribution of funds to the BTC network is indirect, and issues may arise during the process, resulting in lower efficiency in fund utilization. Therefore, the return on investment for BTC users often takes a considerable amount of time.

BNB’s consensus mechanism benefits from the network’s infrastructure laid out by the network itself, resulting in relatively low returns for virtual server nodes participating in consensus verification. Since BNB utilizes DPoS, users’ capital costs involve purchasing BNB assets, resulting in lower capital losses and risks compared to BTC. However, users’ returns and risks are more uncertain as they rely on the market price of BNB.

In terms of deflation and ecological value
USDToch employs a straightforward deflationary mechanism by deducting transaction fees from its own business operations. This creates a direct relationship between the consumption of UTH within the USDToch ecosystem and the growth of the platform’s business volume and user base, leading to higher prices.

BTC, strictly speaking, does not have a deflationary mechanism. While transaction fees settled in BTC circulate back into the market, BTC is still rewarded to miners through block rewards, without any consumption scenario. Nonetheless, BTC follows a similar logic of value appreciation to UTH.

BNB has two advantages in terms of deflation and ecological value compared to BTC. Firstly, it relies on fee income generated by the Binance exchange for regular BNB repurchasing and burning. Secondly, BNB currently does not have additional issuance, whereas BTC still undergoes issuance.

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Don Vegas
Don Vegas

Written by Don Vegas

✨ Community manager | YouTuber | Moderator | Content creator | Ambassadors - @SkaflicOfficial / @Zoidpay || Collab manager - @Btslabs_global

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