Let me share why Datamine, in my opinion, is a diamond in the rough among the plethora of DeFi projects that are out there, and has the potential for some serious growth. Before we get to the technicals, let's talk numbers. Why? I'm a data-driven decision kind of girl, and if there's no data to support my plays, I might as well be gambling in Vegas (although, I must admit I miss being bribed with free massages at the table
). To date, I've made roughly $2.4k on my $10k stake (24% annualized). Again, this is a long-term play for me.ELI5
: Datamine has created a true cryptocurrency (FLUX) that retains value by controlling deflation. To fulfill its various functions, money must have certain properties: Fungibility: its individual units must be capable of mutual substitution (i.e., interchangeability). Durability: able to withstand repeated use. Divisibility: divisible to small units. Portability: easily carried and transported. Cognizability: its value must be easily identified. Scarcity: its supply in circulation must be limited.To become true money and combat inflation you need a deflationary burn mechanism. If you tax people for transactions then you run into a durability problem. Additionally you can just wrap a token to avoid getting taxed. Datamine instead functions like a central bank, but instead of 1 central bank you have 740 decentralized mints (or however many people are running their own Mints). To become a mint, you lock in any amount of DAM in a smart contract. So think of 740 mints working together to continuously produce FLUX (like how central bank prints USD). In a monetary system the central bank controls inflation with various mechanisms. In this case, the mints can choose to burn FLUX to increase their FLUX production or provide liquidity to the L2 Arbitrum layer. In the end you get value retention in FLUX (as people burn USD equivalent).
Pros: Audited contracts. Super-clean UX. Sustained growth. Just released custom L2 Layer on Arbitrum. Also working on custom TA charting with Trends.
Cons: Only 1 dev, rest of marketing is community driven. Slow adoption.
Verdict: IMO a safe long-term bet that retains value.