A New Monetary System for the Metaverse
The metaverse is a brave new world waiting to be discovered, populated, built and activated. In many ways it’s like a whole new country being born before our eyes. Throughout history, as new nations rise there is an umbilical link between their potential and their systems of money and finance.
China’s pre-eminence in the Song Dynasty came because of its invention of paper money and sophisticated forms of credit. Athens became the most powerful city-state of ancient Greece due to its plentiful supplies of silver. More recently, Florence, London and New York became the leading financial centers of their day because they controlled the money supply.
The next stage of metaverse development will be the creation of a monetary system that can provide similar depths of liquidity. This system will allow users to operate multiple blockchains in the metaverse and provide a backbone for companies to operate their own blockchains.
Many companies are looking at the metaverse and working out how to tokenize their businesses. But they only see value in using their own tokens and not accepting rival tokens. This poses a serious problem of integration. Without integration, the metaverse will naturally split into thousands of smaller units, losing cohesion and diluting the network effect.
Bridges and flows
Metaverse finance is nothing less than the creation of a completely new digital system of money that will allow the circulation of tokens within and currency exchange between metaverses. Without the development of a sophisticated metaverse finance system, it won’t reach its potential.
Litedex is just such an integrator. It aims to fuse decentralized finance (DeFi), the metaverse and the rapidly growing non-fungible token (NFT) sector into one feature-rich ecosystem, which allows access to essential DeFi features without leaving the metaverse.
At the core of this ecosystem is LDX, a governance token standing on the BNB Smart Chain (BSC) network. Litedex uses smart contracts to ensure that the highest standards of DeFi technology are met, and it’s fully audited by Certik, the leader in blockchain security. This means users can expect seamless trading across multiple worlds. They can also earn special DeFi powers and accumulate profits by owning Litedex NFTs.
Key to this is enabling fungibility between different forms of metaverse monetary systems. In the fiat systems there are many different forms of money, from coins to cash to credit to bank reserves and so on. Each of these is fundamentally different and separate but they are fungible. From M0 to M5 (as they are termed by economists), each has a use and each has a user, from the individual to the merchant to the bank to the central bank and to governments. Litedex envisages a similar system emerging in the metaverse, all powered by its platform.
In order to achieve its vision of becoming the bridge of metaverse wealth and finance, Litedex Protocol has signed an agreement through its parent company with Hatra Investama Sejahtera (HIS) as an investor and liquidity provider. Last but not the least, Litedex also uses advanced security from Fireblocks to protect all its digital assets.
The history of money is about to have a new chapter written. We know crypto and understand tokens. NFTs are carving their own niche and DeFi is maximizing their use. For the metaverse to thrive as one and not disperse into a thousand warring states, it needs a way of bridging between them. Where it all comes together is in a new financial system built for the metaverse.
As release on CoinDesk :
https://www.coindesk.com/sponsored-content/a-new-monetary-system-for-the-metaverse/
