04 Oct, 2023

Lao PM Highlights Key Measures to Address Economic Crisis in Cabinet Meeting

Following the drastic fall of the Lao kip to a record low against foreign currencies in September, Prime Minister Sonexay Siphandone has urged immediate action.  On 28–29 September, PM Sonexay called on deputy prime ministers, government members, ministry representatives, provincial leaders, and other relevant parties present at the monthly Cabinet meeting to focus on solving inflation, exchange rates, commodity prices, and foreign debts.“This includes measures to intervene in the price of essential commodities, especially rice, meat, fish, and eggs, as well as exchange rate management measures, measures to implement credit policy for production, and other measures defined in the order,” said PM Sonexay.The prime minister urged the attendees of the meeting to continue promoting and monitoring approved projects to ensure their prompt and successful completion, particularly to encourage them to open accounts for payment through the banking system, in order to draw in more foreign currency and generate quick revenue for the state.He exhorted the concerned parties to expedite a methodical inspection and reevaluation of ongoing projects adding, “any project that is not progressing, progressing slowly, or violating the contract and related laws should be decisively canceled.”The country leader also advised the appropriate authorities to prioritize the enhancement of revenue collection mechanisms at international checkpoints in order to reach or exceed the state target.“Efforts to improve management and prevent leakage of state budget revenue must continue in the interim,” stated Sonexay. “The decrees on saving and anti-luxury as well as on state vehicles must be implemented.”Additionally, PM Sonexay advised the pertinent parties to continue preparing the national socio-economic development plan, state budget plan, and currency strategy for 2024 and to prioritize implementing the remaining three months of the 2023 socio-economic development plan.

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.