Introducing Commo Finance
- Today, we’re announcing the launch of Commo Finance (“Commo”), a global community that will launch and maintain the world’s best crypto commodities vehicles.
- With community leadership, Commo has the opportunity to develop into the world’s largest crypto capital allocators.
- COMMO is the Commo Finance’s native token that will enable community ownership and governance, of which 70% will be allocated to the community.
With the resurgence of token issuance led by the DeFi renaissance, there is a deep need and market for crypto commodities which enable:
- Easy access to commodity sectors without being constrained by complexity and fees
- Methods to hedge against a particular commodity sector
- Exposure to a commodity asset class without deep knowledge by a broader audience
Commo is the first community-led decentralized organization focused on enabling the creation and adoption of crypto commodity primitives. To achieve this, we hope to see Commo collaborate with the world’s best traditional finance and commodity experts, crypto experts and commodity houses to launch/maintain desirable products, govern critical system parameters with growth in mind, and embed the protocol into as many distribution channels as possible.
The first primitives governed by Commo will focus on agricultural commodities (Barley, Cocoa, Corn, Cotton, Wheat, Sugar, …).
The Community’s Opportunity
Commodities are the backbone of the global economy of today. The market size of the commodity market is extremely hard to ascertain as it would be hundreds of trillions of dollars in value. However, as an example, the crude oil commodities were worth $1.7 trillion per year. In combination, the commodity markets can easily be around $20 trillion a year.
As communities have been critical to the growth, development, and sustainability of crypto’s most important projects including Bitcoin, Ethereum, MakerDAO, and Uniswap, the strength of the community will be vital to the future of Commo’s success.
If the community works together effectively, we believe the Commo’s community has the opportunity to disrupt the fragmented commodity industry to minimize settlement times and maximize transparency, efficiency and immutability in trade discovery and trade financing at lightning speeds.
The COMMO Governance token
The Commo will launch with a native token (BEP20) called COMMO that will bind the Commo Finance with its holders, enabling community-led ownership and governance. To facilitate sustainable growth, COMMO holders will be responsible for important decisions including:
- Adding Crypto Commodities: COMMO holders are responsible for sourcing, developing, and supporting new index strategies that have broad market appeal.
- Controlling the Community Treasury: To attract a robust set of participants and methodologists, COMMO holders will devise incentive programs to attract and retain crypto commodities methodologists, liquidity providers, marketers, community, developers, and other experts.
- Updating Fee Configurations: To enable sustainability, the community will be responsible for finding the correct balance in deploying value accrual mechanisms.
- Enhancing Performance: COMMO holders will be responsible for determining how to best allocate constituent assets for achieving greatest yield, proper influence, or to satisfy other community-determined goals.
Token allocation, community allocation (distribution, liquidity mining program, methodologists bounties, community treasury) as well governance process will be announced and detailed in following posts.
We will also highlight the pitfalls of the global commodity industry and how Commo is solving each of these issues. Watch this space for more.
A progressing industry needs a modern solution. Commo Finance is a platform aimed at disrupting the fragmented commodity market. More efficient, faster and transparent. The vision of Commo Finance is to revolutionize the rudimentary process of global commodity trade to minimize settlement times and maximize transparency, efficiency and immutability in trade discovery and trade financing at lightning speeds.
Find out more about what Commo is going to disrupt the commodity trading industry at our official website.