Since the launch of the Ethereum mainnet in 2015, countless organizations have built tokens on the platform. While there are many benefits to doing so, some of the most notable include launching a token without having to build your own blockchain, with the help of the large and active Ethereum community and the maturity of Ethereum. uniglo (GLO), chainlink labs (LINK), and Shiba Inu (SHIB) are three successful DeFi projects built on the ethereum network. Let’s explore why.
The Benefits Of Building A Token on Ethereum Network
Using Ethereum to create a token enables organizations to launch their token without creating their own blockchain. As creating a blockchain from scratch may be a challenging and expensive process, this saves a substantial amount of time and money. Ethereum is currently operational and has a sizable user base, so any token will be immediately valuable when it goes online.
Additionally, the Ethereum community is one of the most active and supportive in the cryptocurrency space. Because of this, organizations launching a token on Ethereum can benefit from the expertise and feedback of experienced developers. Moreover, the Ethereum community is always working on improvements and upgrades to the network, which can benefit any token.
Furthermore, the Ethereum mainnet is the most mature and tested blockchain platform available today. Countless projects have been launched on Ethereum, proving to be a reliable and stable platform. This is incredibly important for organizations looking to launch a token as they can be confident that the Ethereum network will remain up and running.
Uniglo (GLO) – A Newcomer On Ethereum Network
One such DeFi project built on Ethereum Network is Uniglo (GLO) – a new but already successful member of the family. The primary driving force behind creating a community-focused platform like Uniglo (GLO) is the need to provide beginning investors with assured price stability.
Uniglo is an Ultra-deflationary token model, and it works by holding a diverse selection of cryptocurrencies, digital assets, and non-traditional financial instruments in its vault to back its native token GLO.
Uniglo ensures itself against erratic and unfavorable market circumstances. To maintain the floor price of GLO and directly link the protocol’s effectiveness, Uniglo has also developed an Ultra-Burn strategy. Uniglo not only performs an ultra-burn function, in which it purchases a certain amount of GLO tokens from the secondary market and burns them, but it also adds another layer of supply-limiting technology by removing 2% of all buy-and-sell transactions.
The purpose of this 2% is to restrict supply and raise prices. As a consequence of the more Ultra-Burns generated by the Treasury’s increased sales and revenues, the supply of GLO will ultimately decline, and the price will rise. In an attempt to manage the supply-and-demand dynamic and sustain the rise in the GLO price, Uniglo will initially issue a hard cap of 218 million tokens.
Chainlink (LINK) And Shiba Inu (SHIB) Overview
The Chainlink and Shiba Inu platforms are built on the Ethereum network and aim to provide users with a decentralized way to access web-based applications and services. Both platforms use the ERC-20 token standard and are compatible with existing Ethereum wallets and exchanges.
Chainlink is envisioned as a way to bridge the gap between the traditional financial world and the emerging world of decentralized finance (DeFi). Meanwhile, Shiba Inu is an experiment in decentralized social media, established as a meme coin that saw a massive surge.
Overall, Ethereum Network is a strong fundament for launching a successful and competitive crypto project, thanks to which all three protocols have gained significant recognition.
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