In an era where technological innovation is reshaping every aspect of our lives, one sector that stands on the brink of transformation is the world of floating infrastructure. Traditional financial systems have long struggled to adapt to the unique challenges posed by this sector, often leaving those in need of funding for floating assets, such as boats and fish cages, in a lurch.
This gap in the market presents both a problem and an opportunity, an opportunity for a novel solution that can bridge the divide between the potential of floating infrastructure and the capital necessary to realize it. Enter Stead, a trailblazing platform utilizing blockchain technology to revolutionize how we fund and manage floating assets. This article delves into the mechanics and potential of Stead, inviting readers to explore a new frontier in blockchain application and investment.
What is Stead?
Stead represents a pioneering platform in the realm of blockchain technology, focusing on funding floating infrastructure. This innovative approach seeks to bring vital liquidity to global markets associated with floating assets like boats, fish cages, and even floating houses. By utilizing a unique token system, Stead offers a solution for financing these assets, traditionally overlooked by conventional financial institutions.
Background and Problems Solved by Stead
The challenges of financing in the floating infrastructure sector are significant, especially in developing economies where traditional banking solutions are either unavailable or unsuitable. Traditional lending institutions often hesitate to finance such projects due to their unconventional nature and perceived risks. This hesitancy leaves a gap in the market, particularly in industries like aquaculture, where the demand for floating assets like fish cages and boats is high. Stead addresses these challenges by providing an alternative financing solution that leverages blockchain technology to facilitate access to capital.
Solution Presented by Stead
Stead introduces a novel solution by creating a blockchain-based platform where tokens represent a real-world asset. These tokens are not merely digital assets; they are backed by tangible floating infrastructure, ensuring a stable and growing value. This approach not only offers a viable financing alternative but also introduces a deflationary model where the supply of tokens decreases over time, potentially increasing their value.
Stead Goals
The core mission of Stead is twofold: firstly, to inject liquidity into the global ship and floating infrastructure markets, and secondly, to facilitate access to capital, especially in regions that struggle with traditional banking systems. This dual approach not only supports small businesses in developing countries but also catalyzes the advancement of seasteading technology. The overarching ambition is to create a Special Economic Zone in international waters, entirely supported by floating infrastructure, where blockchain technology can be utilized to its fullest potential.
How Does Stead Work?
The mechanism behind Stead involves a unique process of tokenization and asset backing. Initially, Stead tokens are issued at a set price, with the cost incrementally increasing over time. These tokens function as a form of investment in floating assets, allowing individuals to contribute to the development of these projects. As these assets generate revenue, a portion of the tokens is systematically ‘burned’ or removed from circulation, creating a deflationary effect and enhancing the value of remaining tokens.
How Do Mint Stead?
Minting Stead tokens is an integral part of the platform’s functionality. To mint these tokens, one must participate in funding a floating asset listed on the Stead marketplace. The process is straightforward: select an asset, contribute funds (in the form of stablecoins or ETH), and receive Stead tokens in return. The cost of minting these tokens is subject to an annual increase, ensuring a rising value floor and a stable, predictable price trajectory over time.
How the Funding Process Works
The funding mechanism of Stead is a cornerstone of its innovative approach to floating infrastructure. The process begins when a party, interested in becoming an ‘Operator’, approaches Stead for funding, which could be for various floating assets like boats, fish farms, or even floating houses. After initial discussions, Stead or the Operator lists the project on the Stead.Builders marketplace. The listing includes detailed information about the project, including its financial viability and the minimum amount of Stead tokens that need to be burned monthly.
Once the listing is approved, it is opened for funding through the marketplace. Investors can then purchase Stead tokens using stablecoins like USDC, USDT, or ETH. These tokens represent pre-minted rental income from the asset. The sale closes once the required funding amount is achieved. The Operator then begins the development of the floating asset, during which a ‘Building Period’ is observed, where no tokens need to be burned.
After this period, the Operator must start purchasing and burning Stead tokens monthly, effectively leasing the floating asset. Over time, the Operator will burn more tokens than were initially minted for the project, leading to the asset’s ownership transfer to them. This innovative funding process not only ensures a stead deflation of Stead’s supply but also anchors its value in real-world floating assets.
What is an Operator?
An ‘Operator’ in the Stead ecosystem is an individual, company, or organization responsible for operating a particular floating asset funded through Stead. To become an Operator, one must express their intent to acquire a specific type of asset and operate it within Stead’s operational zones. The process involves a thorough evaluation by Stead, including financial capability checks and legal agreement signings, ensuring that only credible and capable Operators are onboarded.
How to Become an Operator?
To become an operator with Stead, start by submitting a Letter of Intent to the Stead team, detailing the type of floating asset you aim to acquire and your capability to operate within Stead’s active zones. This initial step, coupled with direct communication with the Stead team for specific details and requirements, is crucial in aligning your project with the platform’s operational scope and standards.
Stead Token Information
Initial Token Distribution
Stead’s strategic approach to token distribution involves pre-minting 5,000,000 tokens, allocation as follows:
- ArkPad Slush Fund (1,800,000 Stead Tokens – 45%)
A significant portion of the tokens, amounting to 1,800,000 Stead, is allocated to ArkPad. This slush fund is dedicated to investing in floating assets, forging strategic partnerships, engaging in marketing initiatives, and funding other expansions of the Stead platform includes the potential development of a Decentralized Autonomous Organization (DAO) for future governance. - Liquidity Farming (200,000 Stead Tokens – 5%)
To ensure sufficient liquidity, 200,000 Stead tokens are reserved for liquidity farmers over two years. The first year will see a distribution of 135,000 tokens, followed by 65,000 tokens in the second year. This allocation aims to maintain a stable liquidity pool on Arbitrum during the platform’s initial phase. - Team (2,000,000 Stead Tokens – 50%)
Amounting to 2,000,000 tokens, is vested to the four founders over a two-year period. This ensures the long-term commitment and motivation of the founding team towards the platform’s success. - Public Discount Sales (1,000,000 Stead Tokens – 25%)
Another 1,000,000 tokens are set aside for public discount sales, spread across the first year of operation. These tokens are stored separately and are only accessible during special sales events. After these tokens are exhausted, no further discounted sales will be conducted.
Tokenomics of Stead Token
Stead’s tokenomics is characterized by a thoughtful approach to value creation and sustainability:
- Emission Rate
Initially, each Stead token is priced at $1. The purchase price of the tokens is designed to increase monthly at a predetermined rate. This escalating price model is intended to encourage early investment and stabilize the token’s long-term value. - Token Burning and Rental
Post-funding of floating properties, approved Operators are tasked with managing these assets profitably. A part of this management involves buying back and burning a portion of the tokens every month. This mechanism not only supports liquidity for operations in developing countries and floating cities but also instills a deflationary aspect to the Stead token, potentially enhancing its value over time. - Supporting Floating Infrastructure
Purchasing Stead tokens directly contributes to the construction of selected floating assets. This approach is particularly beneficial in supporting aquaculture companies and the development of seasteading technologies, especially in regions with limited access to traditional banking services. The integration of blockchain economies in these projects underlines the innovative aspect of Stead’s mission.
What Gives the Tokens Their Value?
The value of Stead tokens is intrinsically linked to real-world floating assets. As these assets generate income, a portion of the tokens associated with each asset is burnt, reducing the overall supply and increasing the value of the remaining tokens. This unique model, combined with the fact that tokens are backed by tangible assets, sets Stead apart from traditional cryptocurrencies and ensures a stable and growing token value.
Stead Marketplace
Stead’s Marketplace is a central hub where the financing of floating assets becomes a reality. Here, investors and Operators converge to fund and manage a variety of floating assets.
The Marketplace itself is intuitive and user-friendly, allowing seamless interaction between Operators and investors. It showcases various floating assets in their fundraising stage, each with detailed information including images, concept art, and legal documents. This transparency ensures that investors can make informed decisions about the assets they choose to fund.
What are Floating Assets?
Floating assets are innovative solutions to utilize water surfaces for human habitation and economic activities. These include seasteads (floating houses), boats, fish cages, and even coastal structures. These assets represent a new frontier in real estate, expanding the usable space on Earth’s surface and offering unique advantages like mobility and versatility.
How to List a Property
To list a property on Stead, interested parties must first undergo a thorough approval process. This involves demonstrating financial capability and signing legal agreements to comply with Stead’s terms. Once approved as an Operator, they can list their floating asset on the Stead Marketplace, where potential investors can fund these assets in exchange for Stead tokens.
Who Approves Listings in the Marketplace?
Listings in the Stead Marketplace are approved by the Stead company, particularly by designated Application Officers. These officers evaluate the financial viability and potential profitability of each asset before granting access to the marketplace. This rigorous process ensures that only feasible and beneficial projects are funded.
Withdrawing and burning mechanism
Withdrawing and burning mechanism in the Stead platform involves the gradual withdrawal of funds by the Operator at different stages of the construction of the floating property. Once the listing is fully funded, there is a ‘Building Period’ during which no tokens need to be burned, typically lasting between 2 to 4 months. After this grace period, the Operator must start purchasing and burning Stead tokens as compensation for operating the floating asset, essentially leasing it.
Once the agreed-upon time has passed, and the required tokens have been burned, ownership of the asset is transferred to the Operator, along with a designated ownership NFT. This NFT signifies the legal ownership of the property and remains with Stead or the governing organization until the burn period concludes, at which point it is handed over to the new owner.
Stead Team
The Stead team is a blend of visionaries and experts, including founder Mitchell Suchner, smart contract developers, front-end developers, UI/UX designers, community managers, and sales and application officers. This diverse team collaborates with marine construction companies and engages in smart contract security audits, ensuring a robust and secure platform.
Why Bullish on Stead Project and Stead Token
There are compelling reasons to be bullish about Stead and its token:
- Innovative Financing Model: Stead’s approach to funding floating infrastructure through blockchain technology fills a critical gap in traditional financing, especially in developing economies.
- Deflationary Tokenomics: The system of token burning and rental ensures a gradual reduction in the supply of Stead tokens, potentially increasing their value annually.
- Real-World Asset Backing: Each Stead token is backed by real-world floating assets, offering a level of security and stability not often found in the cryptocurrency market.
- Dynamic Marketplace: The Stead Marketplace brings together Operators and investors, creating a vibrant ecosystem for funding and managing floating assets.
- Long-Term Vision: The ambition to establish a fully floating city in international waters showcases Stead’s commitment to innovation and long-term growth.
Conclusion
In conclusion, Stead revolutionizes the floating infrastructure sector by adeptly merging blockchain technology with real-world asset funding. It addresses the critical gap in traditional financing, offering a viable and sustainable investment opportunity. With its robust marketplace and innovative token system, Stead is not just pioneering in technology but also in creating new realms of living and business on water.
This platform is set to significantly influence the future of decentralized finance and sustainable development, making it a groundbreaking venture in both the blockchain and maritime industries. If you want to know more about Stead, you can do your own research by visiting their website below.
