a. ๐ Definitions of key terms and concepts related to Ibiza Token, NFTs, and Web3 technology
Ibiza Token: Ibiza Token ($IBZ) is a utility token that serves as the backbone of the Ibiza Token ecosystem. It is an ERC-20 token that is built on the Ethereum blockchain and operates on the Polygon network for increased scalability and lower fees. $IBZ provides access to a range of products, services, and benefits offered by the Ibiza Token ecosystem.
NFTs: Non-fungible tokens (NFTs) are unique digital assets that are stored on a blockchain, making them secure, transparent, and verifiable. NFTs can be used to represent a wide range of assets, such as digital art, music, video game items, and more. NFTs are created using smart contracts, which automate the process of ownership transfer and ensure the authenticity of the asset.
Web3 technology: Web3 technology is the next iteration of the internet, characterized by decentralized applications (dApps) that run on blockchain networks. Web3 technology aims to create a more open, transparent, and equitable internet by enabling direct peer-to-peer interactions without the need for intermediaries.
Smart contracts: Smart contracts are self-executing programs that run on blockchain networks. They automate the process of enforcing agreements and eliminate the need for intermediaries, reducing transaction costs and increasing efficiency. Smart contracts are used in various applications, including NFTs, DeFi, and supply chain management.
DeFi: Decentralized finance (DeFi) refers to a set of financial applications that operate on blockchain networks, enabling peer-to-peer transactions without the need for traditional financial intermediaries. DeFi applications include lending and borrowing platforms, decentralized exchanges, and stablecoins.
Liquidity mining: Liquidity mining is a process by which users provide liquidity to a decentralized exchange (DEX) or other DeFi protocol in exchange for rewards in the form of tokens. Liquidity providers earn a percentage of the transaction fees generated by the protocol, which can be claimed at any time.
Staking: Staking is the process of holding a certain amount of tokens in a wallet to secure the network and to earn rewards. Users who participate in staking receive a percentage of the total network fees as a reward for their contribution to the network security. Staking can be done through validator nodes or delegated staking.
Governance: Governance refers to the decision-making process of a decentralized protocol or platform. In the context of blockchain networks, governance is typically carried out through a decentralized autonomous organization (DAO), where token holders can propose and vote on changes to the protocol, such as changes to the tokenomics or the addition of new features.
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