debtdao

ChainCatcher message, the encrypted credit protocol [Debt DAO](https://www.rootdata.com/zh/Projects/detail/Debt DAO?k=Mjk4Ng==) announced the launch of its mainnet. Before the mainnet launch, Debt DAO underwent 3 months of Beta testing, with a total trading volume of approximately $150,000.It is reported that Debt DAO provides "revenue-based financing" for crypto entities such as DAOs and protocols, meaning that borrowers do not need to sell equity or provide collateral, but instead pay a certain percentage of their revenue to lenders. Once the debt is repaid, borrowers will receive 100% of their income and all the value created through the loan. Debt DAO claims this model is implemented through a smart contract called "Spigot," which "ensures that the borrower's on-chain cash flow automatically repays the lenders."According to the crypto data platform RootData, in August 2022, Debt DAO completed a $3.5 million seed round financing led by Dragonfly Capital. (Source link)

According to ChainCatcher, as reported by CoinDesk, the fair value of the FUD token previously proposed by DebtDAO should be below $1, but the current price of the token has surged to $113, resulting in a debt value exceeding $220 million. Therefore, DebtDAO will burn 18 million FUD tokens on February 7 to align the debt valuation with what DebtDAO considers the fair value.It is reported that FUD is issued by DebtDAO, with an initial supply and circulation of 20 million tokens, accounting for 2% of the FTX debt. Each FUD token is valued at $1, equivalent to approximately $100 million owed to FTX creditors. DebtDAO states that the FUD token is designed to allow FTX creditors to assert their rights to the debt. (CoinDesk)