Adirize DAO will be a Better Store of Value than Tron and Polkadot

A reserve currency is a currency that is the basis of a financial system. It is a currency against which other currencies, goods, and services are valued. The US Dollar has been the world's reserve currency since World War 2. Countries hold the dollar to finance international transactions, pay debts, etc.

Like the traditional financial system, the decentralized financial sector and the crypto world need a token that functions as a reserve currency. That is what Adirize DAO (ADI) is doing by rolling out the ADI token. Efforts have been made in this regard, hence the development of stablecoins. But these stablecoins have their drawbacks.

Most stablecoins are pegged to the US dollar; however, the value of the US Dollar falls, dragging down the values of these stablecoins with it. Consequently, stablecoins lose a part of their purchasing power with each US dollar devaluation. Also, the control of the value of stablecoins is centralized because the US Federal Reserve controls the dollar. This goes against the decentralization ethos of the crypto space.

$ADI is different in this regard. It is backed by a treasury of cryptocurrency assets owned by the Adirize protocol. It ensures that the token can be expected to retain its value over an extended period while remaining decentralized. Just like the dollar is the world's reserve currency, $ADI will be the reserve cryptocurrency.

People will also use it to purchase goods and services in the real world because of its stable value. This is the plan the Adirize team has in mind.

Although the price of $ADI will remain stable, there are still opportunities to earn with the token; one of these opportunities is through staking. Staking on Adirize involves purchasing $ADI and using the Adirize app to stake it for rewards. The rewards are denominated in staked ADI(sADI), which has the same value as ADI.

Another way to earn with ADI is bonding. Bonding entails exchanging your liquidity for discounted ADI tokens. However, you earn nothing by holding ADI because of its stable price. Adirize DAO is in charge of governance in the ecosystem.

Why Should You Purchase ADI instead of TRX

Tron is an open-source, decentralized file-sharing and decentralized application (dApps) platform. It operates on a delegated proof-of-stake mechanism (dPoS), in which TRX holders delegate a validator to validate their transactions on the blockchain. Tron used to be an ERC-20 protocol before it moved to a network of its own.

Tron Virtual Machine (TVM) allows anyone to run Tron-based applications. The governance token of the Tron protocol is Tronix (TRX). The Tron protocol is governed by a DAO.

Although Tron is one of the fastest-growing blockchains, it is volatile, and TRX prices move in tandem with the market. On the other hand, ADI's price remains stable regardless of the market's movement. This makes it an excellent store of value and gives traders a sound reason to purchase it instead of TRX.

The Better Choice: Adirize DAO (ADI) or Polkadot (DOT)?

Polkadot is an interoperable blockchain. It uses a nominated proof of stake (nPoS) consensus to validate transactions on the protocol. Polkadot is made up of a relay, or central chain. Parallel chains (parachains) are connected to the central chain and benefit from its network and security.

Anybody can create a parachain in the Polkadot protocol. The native token of Polkadot is DOT. All DOT holders have full governing rights on the protocol.

However, DOT cannot be used as a reserve currency because of its susceptibility to market trends. In contrast, ADI is a sound reserve currency because it can maintain its price over long periods.

Final Thoughts

Imagine a scenario where a single token becomes the reserve currency for all other cryptocurrencies. It would bring much-needed stability to the crypto space and position it as a viable competitor to traditional currencies.