Common Questions about the CRD Network

The CRD Network is the future of finance and its Token will be key for this, find out more about how it’s managed.

Why are the CRD Tokens pre-minted?

The CRD Token is pre-minted to its theoretical limit of 1bn CRD as it is primarily a utility token that allows you to operate in the CRD Network DeFi environment. Given that the token’s long term planned price evolution is to eventually match the relative value of a stable and pre-determined asset, such as the euro, the governance board has to act like a central bank to guide this price development.

Isn’t pre-minting the CRD Tokens bad?

When first reading about the CRD Network, the pre-minted tokens to their theoretical limit of 1bn CRD is typically what raises an eyebrow. However, there is a good reason why this was done.

Where are the CRD Tokens stored?

Most CRD tokens are not active in the network marketplace and instead are stored in a series of wallets with specific disbursement policies and differing wallet sizes. However, their different purposes are covered by the “Dev Fund Policy”.

What is the long term utility of the CRD?

The CRD Token is primarily a utility token that allows you to access the various apps and functionalities built and executed on the CRD Network. As such, stability and price predictability are one of our chief concerns, given that any fluctuations in price could affect the operability and profitability of the various projects in development and in operation on the CRD Network.

How do CRD Tokens get distributed through the system?

Typical cryptocurrencies primarily distribute the coins through their mining procedures, as this mechanism randomly distributes coins to miners, who will then utilize it in the market to pay for goods and services.

  • Bootstrapping capital for DeFi projects — Developers with interesting projects will be given CRD as seed capital to deploy these functionalities on the network.
  • Financial Instruments — Loans, margins, and other such payments from financial instruments deployed on the CRD Network are CRD-denominated and so may be provided in said currency.

How does the availability of CRD Tokens get reduced?

The CRD Network does not possess a “token burning” feature, in that it doesn’t permanently eliminate CRD Tokens from network use. Nevertheless, it does have the ability to limit the available supply if the need arises.

  • Increasing the fees incurred by network participants.
  • Increasing fees could diminish the usage of the network and might thus accidentally reduce the CRD revenue that was intended to be collected in the first place.

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