Wise Token: What is it?
WISE tokens, also called WISE smart contracts, are Ethereum-compatible smart contracts designed for use on the Ethereum blockchain. It is a decentralized, fully liquid, trustworthy, tradable, yielding, interest-bearing token that is decentralized, fair-launched, and automatically liquid.
The Wise Foundation:
Wise Foundation is a nonprofit organization formed in February 2020 that is unincorporated. The Wise Foundation is wholly funding and developing the WISE contract and various related software and websites.
The Wise Foundation offers a variety of materials that enable anyone to gain a deep understanding of the contract. As not everyone has the means or desire to digest the contract source code, this is an important step in cultivating trust in its functionality.
Wise Token Purpose:
As with bonds and CDs (certificates of deposit), staking is similar to earning interest on money protected by a time. WISE combines some of the best features from these two instruments while improving upon their shortcomings.
A CD typically offers a low return, lower risk, and only pays interest on the maturity date.
It is typically riskier, pays out interest more frequently on a set schedule (typically every six months), and offers higher returns.
WISE is almost like a bond because it earns relatively high interest, yet allows withdrawal whenever the user pleases.
WISE Token Staking:
The WISE staking (PoS) system operates similarly to other staking systems. Essentially, anyone can stake their WISE, i.e. keep it locked up in the contract for days, earning interest.
If the user wishes to withdraw the principal plus interest, the stake will mature at the end of the period. In addition, users can withdraw their interest at any time without paying any fees or incurring any penalties with the WISE contract.
A WISE account can be opened with an unlimited number of stakes.
You can withdraw your interest before maturity with WISE, which is unlike many other staking systems on the market. Additionally, anyone interested in selling tokens on the exchange will find sufficient liquidity there.
How does Staking work in the WISE Contract?
- Opening A Stake
An individual can only lock up the amount of WISE that they have in their possession. The maximum stake length allowed to them must also be within the maximum number of days.
The stake request goes into “pending” status after a user submits it, and it takes up to a day to become active. If the stake does not become active before the user closes it, then no penalty is charged. The stake cannot be closed before maturity once it becomes active because it is penalized.
The share price will increase with time, resulting in earlier stakeholders always owning more shares than later stakeholders.
- Turning stakes into shares
A stake will be granted once a contract has been opened which will convert the WISE tokens into shares. Upon maturity or the closure of a stake, the shares are destroyed, and the user is credited with WISE plus interest (minus any penalties).
- The interest on shares
A WISE contract is burned and the stakes are exchanged for shares. It will depend on how much stock is in a stake when it was opened, and the price of global shares in the contract on how many shares there are. WISE represents the share price in shares.
The number of bonus shares you will be provided with will depend on the stake length and current share price. Starting from a little over 0% for a one-day wager to 25% for a five-plus year wager, the bonus/interest amount will rise by 5% per year. Suppose you own shares for 2 years, then 2×5 = 10% bonus shares will be credited to your account.
On the third day of the Circulation Epoch, the share price will increase by 15% on top of the regular bonus. Stakes opening within the first two days of the Circulation Epoch will get this one-time bonus.
- Withdrawal of interest
At any time during the staking period, users can withdraw their interest amount. During the period, they can withdraw up to 100% of their interest up to the amount they chose.
- Closing a Stake
WISE stakes can be closed before they become active without penalty. You will receive your principal back. You will receive the remainder of your principal and interest if you close an active stake with a penalty. You get the full principal plus interest when you close a mature stake, and there are no penalties for doing so.
Liquidity & Profit-Taking
The “Liquidity Transformer” is one of the most powerful and unique features of the Wise contract.
The Wise contract will receive enhancements during the 50-day launch phase
A large amount of Ethereum.
What happens to this Ethereum?
Ethereum is held in trust until the end of the launch by this contract.
The contract automatically sends it to a popular publisher after the launch an open-source system called Uniswap was developed.
Wise is instantly and substantially liquidated!
