Why to Buy and Hold KZEN?
Table of Contents
The possibility to trade locked tokens is, undoubtedly, one of the unique and most powerful features of the Kaizen platform.
Firstly introduced several months ago, it has already attracted many projects with its novelty and ease of implementation.
Whether you are a startup looking to automate the processes of token issuance and management or a well-established project seeking to secure token offering or arrange a token sale, Kaizen’s extensive suite of token management tools is capable of meeting the needs of any kind of blockchain-based entrepreneurs.
Previously, we have been talking a lot about the locked tokens and the role they play in the platform’s ecosystem. You can learn more about the concept that lies behind the idea of locked tokens in our How Kaizen.Finance Taps Into $200 Billion Market of Locked Liquidity post.
Quite recently we also made a quick but easy-to-comprehend note where we tried to explain the real utility of KZEN tokens.
However, since the Kaizen token generation event (TGE) is happening today, we would like you to pay more attention to the utility value of the KZEN token.
Project Development as a Driver of the Token Utility Value
In general, the KZEN token’s main utility value stems from the fact that it is the sole acceptable currency for paying platform service costs. Nevertheless, the token’s utility value token is not limited to this fact alone.
If we take a step back and look at the fundamental concept of the Kaizen, we find that the project is constantly searching for the best solutions to use the token so that as many projects and investors as possible want to use it.
By utilizing the overarching approach in the KZEN token, Kaizen is able to fulfill the needs of both parties in interest. Following this design, such services as Kaizen Labs and Kaizen Booster were announced for the former, and Kaizen Pass and Kaizen Tiers, for the latter.
We also still continue our work on the kDEX. We perceive kDEX as the world’s first locked token trading platform that opens the door to endless financial opportunities on the secondary market.
This is important to keep in mind because all of this together leads us to the idea of why it is crucial to buy Kaizen unlocked tokens in the first place.
And there are actually three reasons for this.
Kaizen Unlocked Tokens: Three Solid Reasons to Buy
The first would be the fact that the utility value of Kaizen unlocked tokens implies a constant price increase. Why does this happen?
The explanation is quite simple.
Stable token price growth is provided by projects that, in order to cover the costs of using the platform’s services, will buy back most of the tokens from the market.
The second important factor, which will directly affect the utility value, is a time indicator called a cliff. Cliff is a term used to describe the time after the TGE and before the first portion of locked tokens becomes available for unlocking.
Set at the three-month mark, the cliff helps raise the price of the token through its limited supply on the market.
The final, the third factor, is not of less importance.
Since Kaizen.Finance is geared towards building long-term and trusted relationships with its investors and partner projects, not short-term profit, the tokenomics of the project is designed for the long-term outlook.
Based on this model, the new staking periods were developed, and they will come into effect after the TGE. In particular, one of the periods will be for two years.
This kind of consistent unlocking according to the vesting schedule will help the project grow, which, in turn, will help outpace the growth of the number of tokens in circulation. For this reason, prices will rise not only in the short-term but also in the long-term run.
Join our friendly community in our official Telegram channels and follow us on Twitter and Medium: