Utilities
Last updated
Last updated
The discovered utilities for $SHLD token include Discounted premiums, Insure to Earn, etc. However, more token utilities will be discovered and added as the project progresses. Find the details of the utilities below:
Fees for opting for insurance for any transaction or a lumpsum wallet insurance can be settled either in Stable or native tokens or in the $SHLD token. However, all inurance policies bought with $SHLD will enjoy a x% discount on the premium amount or alternatively an x% of tokens as participation reward. Since all the web3 projects (initially eigen operators & crypto bridges) will enable the seamless use of $SHLD, we assume that eventually all premiums will be paid via $SHLD.
If a claim request arises due to any hack/issue, the claim payout will be paid to the users in the form of $SHLD tokens. If the user buys the policy using $SHLD tokens, an additional bonus in terms of $SHLD tokens will be provided to him along with the actual payout.
New customers/web3 projects/crypto bridges of the web3shield’s insurance widget will have the option to stake a floating amount of tokens (based on fixed USD equivalence). Those tokens will act as a guarantee of proper conduct and as an additional incentive token to give them a freemium insurance providing experience. Any project/bridge not acting in good faith will be at a risk of losing this deposit. In the meantime, those tokens will also provide double benefit to the rest of the platform users:
If the token value appreciates in value, users will be able to unstake part of their tokens (as long as they meet the fixed USD equivalence requirement) and sell them for a profit.
If the token value depreciates, users will be able to “sell their stake or asset” in the system at a slight discount to other users who wish to be a customer of web3shield, and instead opt for the revenues sharing option with Web3Shield.
$SHLD will enable retail users to be able to stake any floating number of tokens or stable in the reinsurer risk pool, in order to earn a good APR from it. These staked tokens are kept in the pool and eventually increases the coverage capacity of the insurance provided by web3shield. Users can claim the rewards on their staked amounts visitng Web3Shield Dashboard.
The Actuary DAO introduces a fully decentralized layer to the claim payout process, bringing transparency and fairness to every decision. This governance model is a critical step towards building a truly trustless insurance system in Web3. Actuaries and Adjusters, operating within the DAO, will collaborate to analyze claims and make informed, data-driven decisions. By decentralizing this essential aspect of the insurance process, we enhance both security and trust in the system, ensuring that users can rely on impartial and accurate claim resolutions.
While not the main function of the $SHLD token, it still can be used as a pure medium of getting users attention to any web3 project by way of rewarding users in loyalty points.
With Web3Shield’s Insure to Earn (I2E) model, users can get rewarded for staying protected. If your insured transaction remains unhacked, you’ll receive back X% of your insurance premium in our native $SHLD token. This incentivizes users to secure their transactions while benefiting from potential rewards, making insurance not just a safety net, but a valuable earning opportunity.
Web3Shield's $SHLD token operates on a deflationary model designed to increase its value over time. X% of total platform revenue is allocated to buy back and burn $SHLD tokens, reducing the total supply. This mechanism helps maintain scarcity, driving long-term value for token holders while reinforcing the health of the ecosystem.
Web3Shield offers a Zero Fee Insurance option for users who stake our native $SHLD token. By staking, you can enjoy "free" insurance coverage for all restaking and bridge transactions, providing seamless protection without the need to pay additional premiums. This model rewards loyal participants while ensuring maximum security for your cross-chain activities.
