As we approach a world that is increasingly controlled by technology, we need to redesign the system and adjust the incentive mechanism to benefit the public. The existing Internet Web2.0 is changing to Web3.0, which will fundamentally change the way we interact with the Internet. Web3.0 is to redesign existing Internet services and products to benefit the public. Break the monopoly of giants controlling the Internet, and build a more distributed, more decentralized, and more fault-tolerant network based on open protocols and transparent blockchain networks. The way consumers interact with these protocols is through a new type of application, which provides a convenient way to interact with the underlying technology. Fundamentally speaking, Web 3.0 is a more fundamental change.
WEB3 FUND identify with the core values of web3.0,which is Open, Trustless, and Permissionless, and clearly recognizes the value of its technology and the opportunities it brings. Therefore, WEB3 FUND choose the three most represent web3 blockchain networks and their native tokens as index tokens, the smart contract platform Binance Smart Chain, the cross-chain network Polkadot, and the decentralized storage Filecoin, Thus created a decentralized ETF index fund that invests in the web3.0 field.
Web3 Fund allows qualified investors to pool and manage assets on the Binance Smart Chain through its elasticity index pool, just like index funds do in the stock market: track the index by creating an asset that represents the ownership of a diversified asset portfolio In the market area represented, this equity asset is W3F.
According to CoinGecko’s Q1 industry report for the first quarter of 2021, in the re-encryption market, Binance actually occupies 59% of the centralized exchange market. This is completely a monopoly, and it is indeed a distance from other major exchanges, even Coinbase. In fact, everyone is well aware of the reason. The key is the great success of Binance Smart Chain BSC. It can be said that at least most of the current high GAS fee defects of the DEFI project of the Ethereum chain have been filled. If the Ethereum chain is in high-end users and If the project occupies an absolute advantage, then Binance will have an absolute advantage in mid-range and even low-end users and projects.
Web3 Fund is based on Binance Smart Chain BSC. Its index pool has BEP20 index token W3F. Anyone can mint by providing underlying assets to the pool, or burm W3F to claim the underlying assets or trade W3F on the exchange for easy management Its exposure in a specific market.
Web3 fund has many innovative advantages, and its claim mechanism is actually more advantageous and challenging compared to the grayscale funds in the United States. The Grayscale Fund has substantially increased its digital currency holdings since last year. Grayscale wrote in its investment report for the first quarter of 2021: “In 12 months, the inflow of Grayscale products exceeded the threshold of 1 billion U.S. dollars for the first time, showing strong And continuing evidence shows that investors are increasing their exposure to digital assets at current levels.”
But nominally, simply speaking, the Bitcoin trust of the scale fund is still based on centralized management and irredeemable equity derivatives. Regarding the redemption mechanism of the web3 fund, its tracking web3.0 has become the decentralized core asset of the Internet. ETFs are undoubtedly more attractive to investors who are consistently long in the field of web3.0.
Many investors regard digital assets as medium and long-term investment opportunities and are a core component of their investment portfolios. It can be seen that the layout of W3F allows each network to cover different areas of the next development of the Internet. It chooses the portfolio that best represents Web3.0-BSC, Polkadot, Filecoin. Web3 Fund uses an algorithm-based elastic mechanism to automatically carry out portfolio management projects, and transfers basic assets to the index pool through smart contracts, thus building a new Defi ecosystem.
In the future, more assets that can represent the vision of web3.0 will be income as index tokens.
As a transparent, safe, efficient and anonymous “distributed” mobile financial circulation network, Web 3 Fund will use a unique defi system, customizable smart contracts and a “decentralized” distributed service architecture to become a deep Extensible token system. All this has been achieved. While paying attention to the development of the next-generation Internet of web3.0, let us pay more attention to the value created by this innovative ETF.