29 Sep, 2023

Integrating Web2 and Web3 for a Sustainable Economic Model: LADT’s Approach

Tokenomics is an important concept to consider when making an investment decision because ultimately a project that has smart and well-designed incentives to buy and hold tokens for the long haul is more likely to outlast and do better than a project that hasn’t built an ecosystem around its token. A well-built platform often translates into higher demand over time as new investors flock to the project, which, in turn, boosts prices.In this article, we will delve into the economic models utilized by both the ASEAN USD and NGT. Furthermore, we will explore how LADT’s fusion of Web2 and Web3 methodologies, along with the integration of external income sources, nurtures a sustainable positive feedback loop within the ecosystem.The General StructureAccording to the CAICT (China Academy of Information and Communications Technology), out of the over 80,000 blockchain projects ever launched, only 8% remain active today. Furthermore, among these projects, 97% lack external sources of income.Differing from traditional DeFi projects where project revenues go to the treasury, and the treasury conducts buybacks to create token appreciation, the LADT economic model departs from the conventional Web3 pattern and actively integrates the financial flow from NewPay, Laos’ leading mobile digital payment platform (17M+ US dollars monthly payment volume), along with its existing user base (500K+ active users) .This enables both the Web3 ecosystem itself and a portion of the revenue generated from NewPay’s traditional business to flow into the treasury. The treasury, in turn, offers yields higher than the market average (settled in NGT) to users participating in staking, as well as conducts NGT buybacks to induce deflation, leading to an increase in NGT’s price.The Web2 economic circleASEAN USD can be minted directly with the US Dollar and some of the ASEAN fiat currencies, such as the Singapore Dollar, Thai Baht, Vietnamese Dong, and Lao Kip, with 100% reserve backing (Reserves are held 100% in US dollar deposits, US treasuries and cash equivalents).Businesses can open a LADT Account to exchange ASEAN fiats or US dollars for ASEAN USD. When a business deposits ASEAN fiats or US dollars into their LADT Account, LADT issues the equivalent amount of ASEAN USD to the business. The process of issuing new ASEAN USD is known as “minting”. This process creates new ASEAN USD in circulation.Similarly, when a business wants to exchange their ASEAN USD for ASEAN fiats or US dollars, the business can deposit ASEAN USD into their LADT Account and request to receive ASEAN fiats or US dollars. This process of redeeming ASEAN USD is known as “burning”. This process takes ASEAN USD out of circulation.A portion of the ASEAN USD minted will be introduced into the NewPay ecosystem, catering to retail customers for purchases, and enhancing liquidity through offline mobile payment. Another portion will be allocated to the Neway lending platform (The LADT lending platform, constructed on an EVM-compatible protocol, which will be elaborated upon later).Meanwhile, the profits generated by the reserve, NewPay, and the lending platform (Neway) will all be directed into the treasury, offering attractive yields to the businesses.The Web3 economic circleThe Web3 economic circle of LADT is based on an EVM compatible protocol that enables supplying of crypto assets as collateral in order to borrow the base asset. Accounts can also earn interest by supplying the base asset to the protocol. In the following text, we refer to the lending protocol operating platform as “Neway”.Retail client can use BTC, ETH, and some cryptocurrencies specified by Neway as collateral to exchange for ASEAN USD. They can then stake ASEAN USD and NGT in a combination of assets to earn high yields denominated in NGT. It is important to note that a collateralized asset can activate users’ borrowing capacity, but will be made available to be partially liquidated when your balance becomes insolvent.Neway provides attractive yields ranging from 4% to 8% APY to encourage individuals to stake ASEAN USD. The initial staking requires the purchase of NGT, after which participants can begin staking with a 30% NGT and 70% ASEAN USD ratio.Stakers have the option to receive their full earnings upon maturity (vesting periods: 90 days) or choose early withdrawal with a partial loss of earnings.As mentioned earlier, the profits from Neway will also flow into the treasury. At the same time, the treasury will engage in NGT buybacks to create deflation, thereby increasing the token’s value.SecurityThe security of the LADT protocol is our highest priority; our development team, alongside third-party auditors and consultants, has invested considerable effort to make sure the protocol that we adopt is safe and dependable. All contract code and balances are publicly verifiable, and security researchers are eligible for a bug bounty for reporting undiscovered vulnerabilities.We believe that size, visibility, and time are the true test for the security of a smart contract; please exercise caution, and make your own determination of security and suitability.SummaryIn summary, within this economic model, tokens transcend their conventional role as simple mediums for value exchange and transform into tools for both acquiring users and generating value.This profit reallocation process not only amplifies user activity and loyalty but also incentivizes greater user engagement, propelling the overall growth of the ecosystem. Furthermore, with the infusion of strong external income, the entire economic model achieves sustainability.

25 Sep, 2023

A Comprehensive Overview of the 43rd ASEAN Summit in 2023

Indonesia recently concluded its tenure as the Chairman of the ASEAN (Association of Southeast Asian Nations) by hosting the 43rd ASEAN Summit in September 2023. This summit, spanning from the 5th to the 7th, brought together leaders from ASEAN member countries and several other nations and organizations. Here, we provide a breakdown of some of the key aspects and outcomes of this significant event.Unprecedented Summit ScaleThe 43rd ASEAN Summit, under the theme “ASEAN Matters: Epicentrum of Growth,” gathered leaders from ASEAN member countries, including Laos, Cambodia, the Philippines, Singapore, Malaysia, Vietnam, and Brunei. Additionally, East Timor’s Prime Minister Shananana and Thailand’s Foreign Ministry Secretary General Charen Suwan attended as observers on behalf of the new Thai Prime Minister, Saita.Moreover, leaders from ASEAN’s nine partner countries, including the United States, South Korea, Japan, India, Australia, New Zealand, Canada, Russia, and China, along with two guest countries, Bangladesh and the Cook Islands, participated in the summit. Representatives from international organizations like the United Nations, the World Bank, and the International Monetary Fund also joined the discussions. This gathering was marked as the largest ASEAN Summit in history, according to Indonesian Foreign Minister Retno.ASEAN’s Stance on Proxy Roles for Major PowersDuring the summit’s opening ceremony, Indonesian President Joko Widodo emphasized ASEAN’s united stance against allowing the Southeast Asian region to become a proxy battleground for major world powers. In a time of increasing global competition for influence, President Widodo likened ASEAN to a giant ship and called for unity among ASEAN member states to navigate towards the center of economic growth.Agenda and Goals of the ASEAN SummitThe 43rd ASEAN Summit had clear objectives centered around promoting and strengthening the realization and foundation of the ASEAN Vision 2045. To achieve this, the summit focused on discussions related to:Development and enhancement of ASEAN’s cooperation with external partners.The South China Sea Code of Conduct.The Southeast Asia Nuclear-Free Zone.ASEAN’s maritime outlook.ASEAN Indo-Pacific outlook.The issue of Myanmar, among other topics.Additionally, the summit aimed to reach significant agreements on various subjects, including enhancing ASEAN infrastructure, food security, blue and green economies, as well as the digital economy and payment ecosystem.The Release of ASEAN Harmony Joint Statement and ASEAN Vision 2045A significant aspect of the 43rd ASEAN Summit was the adoption of the fourth “ASEAN Harmony Joint Statement” and the “ASEAN Vision 2045.” These statements followed the 1976 “Bali Declaration I,” which established a code of conduct among ASEAN member states, and the 2003 “Bali Declaration II,” which led to the creation of the “ASEAN Charter.” In 2011, the “Bali Declaration III” aimed to ensure ASEAN’s active engagement in addressing global issues.Laos’ Perspective as the 2024 ASEAN ChairLaos Prime Minister and the 2024 ASEAN Chairperson, Mr. Sonexay Siphandone, discussed the opportunities and challenges facing ASEAN in areas like economic integration, climate change, and sustainable development during his speech at the summit. He also emphasized the need for collective efforts within ASEAN to create a favorable business environment and secure a central position in the regional and global economy.As the incoming ASEAN Chair, Laos is preparing to host important events, including the 27th ASEAN Tourism Ministers Meeting and the 42nd ASEAN Tourism Forum in January 2024. Additionally, Laos is expected to play a significant role in advancing the adoption of the ASEAN USD stablecoin payment system, contributing to the development of ASEAN’s digital economy.ASEAN’s Expanding Economic RoleIn 2023, the Association of Southeast Asian Nations continued to make substantial strides in the global economic landscape. With a projected economic growth rate of 4.5%, ASEAN outpaced the global average, underscoring its growing significance on the world stage.Robust Intra-ASEAN Trade and InvestmentsA notable driver of ASEAN’s economic ascent was its thriving intra-regional trade. Projections estimated that intra-ASEAN trade would soar to an impressive $856 billion. This surge in trade activity reflected the increasing economic interdependence among ASEAN member countries, driven by the removal of trade barriers and the promotion of regional economic integration.In addition to trade, intra-ASEAN investments also witnessed remarkable growth. These investments were anticipated to approach nearly $27 billion, signifying the attractiveness of ASEAN as a destination for both domestic and foreign investors. The region’s burgeoning middle class, abundant natural resources, and improving infrastructure contributed to this investment allure.Towards Becoming the World’s Fourth-Largest Economy by 2030ASEAN’s cumulative Gross Domestic Product (GDP) stood at approximately $3.7 trillion, making it a substantial economic force. Furthermore, the region has a population of over 670 million people, representing a dynamic consumer market.With this momentum, ASEAN is on a trajectory to ascend to the ranks of one of the world’s largest economies. Projections indicated that by 2030, ASEAN could secure its place as the fourth-largest economy globally, a remarkable achievement that underscored the region’s economic prowess and potential.As ASEAN continues to foster economic cooperation, improve infrastructure, and attract investments, its role in the global economy is set to become even more prominent. This growth holds the promise of increased prosperity for the region and contributes significantly to the interconnectedness of the global economic landscape.Challenges and Future Development Directions for ASEANThe situation in Myanmar remained a significant concern for ASEAN, and discussions during the 43rd ASEAN Summit reflected the organization’s determination to address this issue. ASEAN leaders also discussed the region’s greater involvement in guiding discussions on future issues and narrowing differences with major powers.According to ASEAN Secretary-General Dato Lim Jock Hoi, these meetings provided a platform for ASEAN and its dialogue partners to collectively seek solutions to the difficulties and challenges facing the region and the world.SummaryThe 43rd ASEAN Summit marked a historic event with extensive participation from leaders, observers, and representatives from various nations and organizations. The summit addressed critical issues and aimed to enhance regional cooperation and collaboration. Indonesia’s hosting of the event set a reference for Laos, the next ASEAN Chair, which is expected to contribute significantly to advancing the ASEAN digital economy and maintaining regional peace and stability in the coming year.