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What is Tectonic Crypto Burn Mechanism for Tonic | How To Stake Tonic Explained 2022.

Tectonic Platform

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What is Tectonic Crypto Burn Mechanism for Tonic?

The answer is Staking , as more people borrow and repay their loans on Tectonic , the staking module will buy more TONIC off the market resulting in a lower market supply.

Why is TONIC going down ?

Tonic is going down because of two reasons-:
1st)The Staking Module buying more Tonic off the market resulting in a lower market supply , thus high burn rate.
2nd)TONIC Iis based Kronos blockchain , and as kronos is going down so expecteadly TONIC is also going down.

Disclaimer -: I need to give you a disclaimer before I talk about this bill. I am not a financial advisor , I'm just an educator and this blog post is written with the sole purpose of providing you factual information. Please contact a financial advisor if your portfolio has been killed. If you're new here, you might be feeling a little bit lost right ? My name is "MrCrypt "and I am your crypto geek here at the cryptolibrarynow . I pass on the knowledge of cryptocurrencies, exchanges, DeFi, protocols, NFT's and market analysis are just a few of the topics I tackle on the daily basis. Now enough with the intro. Let's get it on ,

What is Tectonic?

Tectonic is an algorithmic based, decentralized, non custodial money market protocol that allows users to access instant loans as liquidity. Borrowers can earn passive yield by supplying assets. The architecture and design of the tectonic protocol are based on the Kronos blockchain technology, making it interoperable with the atom and Ethereum blockchains. The tectonic platform launched in late 2021 and it shares similarities with popular decentralized finance platforms, the tectonic critical aims to provide users with seamless and secure digital currency, money, market functionalities, tectonic users can borrow liquidity from the market by providing collateral that exceeds the value of the borrowed asset. They can also provide liquidity to generate passive income. The returns on assets deposited by tectonic liquidity providers are based on dynamic rates dictated by market demands. Users can access other cryptocurrencies for ICO's or bonding without liquidating the original coins. Traders can take crypto loans for short term trading or farming opportunities. Tonic holders can earn interest by providing assets to the tectonic protocol without actively managing their assets. According to the tectonic road map. It will add more tokens in Q-12022 to significantly increase the list of tokens supported for borrowing and lending, Cosmos based assets and other top priority ,EVM compatible assets will make up the list.

What is Tonic ?

The native token of the tectonic protocol is tonic and it Bowers the ecosystems incentive program. Tonic has a total supply of 500 trillion tokens. Somewhat ridiculous supply of the token has generated skepticism among potential investors. However, the development team has reiterated its assets good spread since the launch of the tectonic project tonics market price has seen significant growth because of the development of the network. The Tectonic project has garnered interest from stakeholders in the CRYPTOSPACE. And was recently on boarded by the cross chain DEFI Dashboard APE board because of its value VVS finance is another protocol that supports the tectonic platform. In addition, the surges and growing interests in tonic are altered due to the substantial token giveaways the network offers. According to Tectonic Tokenomics, 23% of tonic supply is allocated to the protocol team .This allocation has vesting period of four years and a daily release clause. Also, the project development team has embarked 13% or 52.5 trillion tokens for ecosystem related initiatives, partnership development projects, advisory teams, etc. In this case, there is no stipulated vesting schedule and the tokens will only be released for activities according to the growth of tectonic ecosystem.Tonic is one of the newer tokens on the market , having only launched on december23rd 20221, at the price of 0.000004$ this was the day after tectonics main-net went live on the Kronos blockchain. 

What is Tonic Staking ?

TONIC staking is an upcoming feature on Tectonic allowing TONIC holders to deposit their tokens into the TONIC staking module, in return for yield rewards.Here’s the general idea: stakeholders receive rewards, including a share of protocol revenue generated from fees paid by borrowers TONIC staking will drive further utility for the TONIC token, it seeks to align incentives with the long-term believers of our protocol and benefits token holders.The staking of TONIC provides several important benefits to the Tectonic community including rewards, insurance, and governance.Tstaking rewards will be the first of these benefits to be realized, with insurance and governance to follow in the coming months.The use of staked TONIC tokens will eventually extend to voting on Tectonic governance proposals. In the meantime, staking TONIC tokens offers rewards, and helps to insure the Tectonic community against potential shortfall events.

How Tonic Staking Works -:

When you stake TONIC into the staking module, you will earn xTONIC based on the TONIC to xTONIC exchange rate at the time. The TONIC to xTONIC exchange rate increases over time, so when you withdraw your TONIC from the staking module, you will receive more TONIC than you initially deposited.

Lending Assets -:

On the heels of the DEFI craze , Tectonic is an exciting new platform that gives Customers the option of participating as either liquidity suppliers or borrowers. It's possible for the people who invest in both to get money out of their investments. There are three sorts of customers that make up the tectonic platform, those who want to preserve cryptocurrency for a long time and want to earn interest on their money. Traders who borrow to take advantage of short term trading and farming and users who want to capitalize on many other cryptocurrencies without selling their original assetsAs part of its lending platform, Tectonic relies heavily on overcollateralization by securing more money than they plan to borrow, the borrowers ensure that their customers will not be able to escape with the least money. However, the technology utilizes a collateral factor to help consumers calculate how much they must commit. Depending on the value of the collateral, users can borrow up to a certain proportion of their Bitcoin. For instance, if WETH's collateral factor is 75% you can borrow $75 for every $100 you lock in. With a tectonic token the collateral factor for any asset can be adjusted. In the beginning, tectonic seemed to be a centralized platform that was gradually relinquishing power to its members. At some point, everyone with a specific quantity of tonic, will be allowed to vote on proposals that would alter the platform's parameters. These modifications could be related to security, development or even collateral damage. When it comes to holding tonic tokens and participating in the governance process, the maximum supply is 500 trillion tonic. For the most part, tonics distribution is made-up of. Incentives which are obtained via the staking and liquidity mining of the cryptocurrency. The rest of the money will go to the members of the team's security and a conservation area. So far tectonic has not established itself as a major participant in the cryptocurrency world. During the debut of the tonic coins there were around 150 trillion of them over the following ten years. The circulating supply would expand to a maximum. Of 500 trillion tokens. Now let's move on to its fundamentals. First is supplying assets to tectonic. Tectonic allows users to submit their crypto assets to the platform in order to act as a liquidity provider for other users assets. The tectonic protocol combines the supply from each user into a pool of assets managed by smart contracts, transforming it into a fungible resource for the protocol, while also enabling users to withdraw their supply at any point in time. Also, TETH or TUSDC(ie Tx) will be given to liquidity providers in exchange for the assets they have provided. These tokens will give them the right to redeem the assets they have supplied at a later point in the future when the supply and demand of assets are balanced, the value of the token will rise in tandem with the deposit interest rates, which are determined by supply and demand. Anyhow, let's get into the second fundamental of tectonic. Which is...

Borrowing assets-: 

You could borrow supported cryptocurrencies from tectonic asset pools with their given assets, serving as collateral. Each asset is assigned a collateral factor, also known as the loan to collateral ratio, which represents the amount of money that can be borrowed against each collateralized assets like with a collateral factor of 75%, the users are only able to borrow up to 75% of the value of their collateralized assets. So if the value of the collateralized assets decreases or the value of the borrowed assets increases, a part of the outstanding borrowing will be liquidated at the current market price, less a liquidation discount to reflect the change in the market value. The percentage of borrowed assets that must be liquidated varies based on the assets and the market circumstances. Using more collateral or repaying a part of their loan, users could avoid the liquidation. From occurring and each loan will have a compound interest rate and it will be possible to repay it at any point. 

How to Stake Tonic ?

1. Go to "TONIC" from the navigation menu at the top of the Tectonic website.


2. You will see the staking module panel in the column on the right,
next to the Airdrop claim panel.


3. Input the amount of TONIC you would like to stake and submit.

4. You should now see the amount of TONIC you've staked in the bottom section of the staking panel. You're done! 

How to Unstake Tonic ?

1. Go to "TONIC" from the navigation menu at the top of the Tectonic website.


2. You will see the staking module panel in the column on the right,
next to the Airdrop claim panel.
Cick on the "Unstake" tab.

step 2
3. Input the amount of TONIC you would like to unstake and submit.
Once the transaction is complete, you will see a countdown timer showing the remaining time in your,
cooldown period.
step 3
4. Your unstaked TONIC will be available for withdrawal to your wallet once the cooldown period expires. Come back to the Tectonic website to withdraw your unstaked TONIC then.

Tonic Price Prediction -:   Prediction.

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