All this DeFi craze started with Compound projects introducing a community governance token. As part of a project that relies entirely on people’s social networks to distribute your tokens, what’s your opinion on governance tokens?
Governance tokens are certainly becoming very important and they seem to be a great way to introduce skeptics into cryptocurrency. I believe many of the tokens still suffer from the same difficulties we have been trying to mitigate in terms of usability for the common person. Many DeFi projects still feel very technical in nature to average citizens. If we could see a mainstream governance token take hold and grow virally, it would be huge. At ONFO, we have always believed in bringing a simpler token to the masses, so we naturally feel strongly about how downtrodden and struggling individuals throughout the world are best encouraged to dive into decentralized currency.
Let’s understand how ONFO gets into people’s hands. How would you define network mining?
With ONFO, we have natural growth and spread through our network mining process. People sign up by applying for an account. Then, through our algorithm, they are carefully verified as unique individuals. It is this step which automatically triggers a release of tokens. We refer to this as proof of effort. That is how our tokens are distributed into the community. We have never had an ICO or IEO in order to issue/sell tokens. Network mining allows individuals from all over the world to earn additional tokens simply by sharing their unique code with friends and family. Each time a person signs someone else into the system, they are rewarded. The entire process is completely free and does not require us to really advertise the program. We are already in 192 countries completely through organic spread.
Do you think cryptocurrency can become a source of passive income for the people using it?
Much like DeFi programs, our system naturally allows someone to earn additional ONFO tokens simply through telling others about it. This evangelizing can become a source of passive income and we have seen many influencers use ONFO referrals to obtain additional income for the social reach they have already achieved.
What do you think is stopping people from using cryptocurrency today?
The biggest reason many people don’t participate in cryptocurrency today is how difficult it has been to use overall. I am a seasoned cryptocurrency expert and I still tremble a little bit each time I perform a Bitcoin transaction. There can be no room for error on a network like that! That kind of trepidation I feel when using tech like Bitcoin MUST be removed from any crypto program that intends to become mainstream.
ONFO doesn’t seem to have an entry barrier. One can generate tokens right away. Where does its value come from?
There is a great axiom in network mathematics known as Metcalfe’s law, which states that the overall VALUE of any network is always proportional to n2, where n is the total number of users participating in the network. I get asked all the time how crypto becomes valuable and it’s really as simple as n2. Mathematicians and technophiles around the world intuitively understand this, so they have been the first ones to jump in, knowing that as these programs grow, they will become enormously valuable. If you really think about it, all networks that are ubiquitously used throughout the world increase in value as more people use them. Facebook, for example, only became valuable when enough people had joined.
DeFi shows an exponential growth that some people are considering a bubble. Do you think the market is overvalued presently?
I genuinely hope that DeFi programs are not in a bubble. I predicted many years ago that the cryptocurrencies which end up being used by mainstream citizens across the globe will have had to reach a point where they grew exponentially. All of the most powerful financial networks grew very rapidly at some point or another. DeFi and tokens like ONFO are going to outpace the 1.0 systems, such as Bitcoin and Ethereum, in time. This is why I believe now is the time to get into crypto and join the revolution. These systems will continue to grow and become more powerful as they do.
Opposing DeFi’s artificial growth, the ONFO token is designed to grow organically. How do you think this helps the project?
We believe ONFO’s advantage over DeFi programs is its ease of use. Plus, there is nothing to purchase, thereby lowering the barrier of entry even more. Network mining is a very natural organic growth concept that fits well into a paradigm most people already know. In other words, it is very intuitive for all of us to tell others about something that we like or which has given us some kind of benefit.
The DeFi movement is all about replacing sovereign currencies. But it seems like the rich are getting richer by exploiting these platforms while nothing really changes. What’s your take on yield farming?
I look at yield farming as a normal development. It is useful in the crypto market in the way automated trading bots scrape for incremental profits on stock exchanges. There will always be someone squabbling for even the tiniest fraction of a profit, but it creates more volume and liquidity for these markets and that’s completely normal. Opportunists will always be there searching for carrion in any market you can name. Crypto will not be any different in that regard. I am completely in favor of it and I think it enriches the crypto markets even more.
Most tokens don’t have the ability to replace traditional currencies due to their volatility, but ONFO is a stablecoin by design. What’s the mechanism behind it?
I believe this goes back to the size of the networks in question. Math-based currencies are still in their infancy and have yet to show any sizable market share in the financial markets. The n2 is simply too low. A higher number of users will naturally create price stability. Gold would be incredibly volatile too if only 100 million people in the world considered it valuable. The mechanisms we employ at ONFO create stability through what are called “coin splits”. If the ONFO token hits a certain price point, a split will be triggered to keep the price at a lower threshold, much like what we see in the stock market where a stock splits in a 2:1, 3:1, or 4:1 fashion. As we have watched the early cryptocurrencies reach high values, we recognized that people prefer to see a token consistently stay in a general price range. But for the speculator, appreciation in asset value is still achieved via the split, so it is the best of both worlds.
The decentralization concept was initially introduced to give power back to the people. Do you think the current decentralized projects are following this concept?I believe most crypto projects are pump-and-dump schemes, to be honest. Most crypto ecosystems unfairly distribute tokens to whales, aka large early investors. As soon as any real market liquidity is achieved, the majority of these early opportunists quickly tend to manipulate the networks they built or invested in. This is done via profound profit taking or market manipulation. To truly give the power of decentralized or math-based currencies to the masses, we must devote our loyalty to those systems that operate in the fairest manner possible.
How does ONFO plan to give the power of the currency back to citizens of the world?
As citizens of the world unite in a common cause, creating a cohesive network, great power is achieved through the growing consensus of those network participants. Citizens of the world already have this power, though! They simply need to execute it by coming together and demanding a better product. As a product becomes more competitive, ubiquitous, and easy to use, the world becomes more enriched as the technology percolates everywhere.
What’s next for ONFO? Can you give us a sneak peek about what you are currently working on?
We are continuing to develop our user-verification algorithm and eventually you will see it performed entirely by artificial intelligence. We are still in the data-gathering phase, which will lead to an even better verification of user accounts. When we can fully automate the proof-of-effort validation process, our growth will become even more significant. This is our biggest focus right now. We also believe we will be on many more exchanges in the near future.