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Glossary

This is an important glossary of terms used commonly in the Unit Network documentation.

APY

Annual Percentage Yield, is the rate you can earn on an account over a year and it includes compound interest.

Blockchain

A blockchain is a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.
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Blue Chip

Blue chip cryptos are established cryptocurrencies with institutional status, strong reputations, higher liquidity and lower volatility.
It's a direct analogy to when poker chips were blue, red, and white, with the blue chips being the most valuable. Blue-chip stocks have stood the test of time, have weathered bear markets and down-turns and are seen as being financially stable and productive over time.

Burn

Burning tokens involves indefinitely removing a digital asset from circulation and reducing its supply. On Unit Network this is done by sending tokens to a treasury in order to redeem the Blue Chip assets held there. Users 'redeem' blue chips by 'burning', or sending their tokens to the treasury.

Circulating Supply

Circulating Supply refers to the number of coins or tokens of a specific cryptocurrency that are publicly available to buy or sell. If you can trade them, they are considered circulating.

Coin

Crypto coins are native to their own blockchain. The Bitcoin blockchain coin is BTC. The Ethereum blockchain has ETH. And the Litecoin blockchain uses LTC. These crypto coins are primarily designed to store value and work as a medium of exchange, similar to traditional currencies. This is why crypto coins are also referred to as cryptocurrencies.

DAO

A decentralised autonomous organisation (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity. Popularised through cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions in a bottoms-up management approach.

DCT

Decentralised Community Token: This represents the next evolution of the Web3 ecosystem following on from ICOs and NFTs.

Dump

A dump refers to a rapid drop in the price of a coin or token due to irregular or unprecedented selling activity. Dumping usually occurs when an individual (or individuals) with a considerable amount of coins or tokens sells at market price (or lower) in an attempt to profit from a recent rise in price. Dumps can also occur when a large portion of current investors rapidly sell their assets due to negative sentiment.

ICO

Initial Coin Offering: A process or event in which a company (especially a start-up) attempts to raise capital by selling a new cryptocurrency, which investors may purchase in the hope that the value of the cryptocurrency will increase, or to later exchange for services offered by that company.

IDO

Initial DEX (Decentralised Exchange) Offering: An IDO is a crypto token offering run on a Decentralised Exchange (DEX). Liquidity pools (LP) play an essential role in IDO's by creating liquidity post-sale. A typical IDO lets users lock funds in exchange for new tokens during the token generation event. Some of the raised funds are then added with the new token to an LP before being returned later to the project.

IEO

Initial Exchange Offering: An Initial Exchange Offering (IEO) is the Cryptocurrency Exchange equivalent to a stock launch or Initial Public Offering (IPO). An IEO is the process of digital asset (e.g. coins or tokens) procurement through an established exchange for the purpose of raising capital for start-up companies.

Market Cap (MCAP, Market Capitalisation)

The value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.

Token

A crypto token is a virtual currency token or a denomination of a cryptocurrency. It represents a tradable asset or utility that resides on its own blockchain and allows the holder to use it for investment or economic purposes.

Treasury

Within the Unit Network ecosystem, the Treasury is a transparent, immutable way by which value can be distributed to token holders. Whatever assets are added to the Treasury become the reserve assets of the enterprise and give token holders ownership of those assets equal to their proportion of token holdings.
Once digital assets are transferred into a tokens' treasury they are only redeemable by the token holders, who can choose to sell their tokens back to the treasury and redeem whatever digital assets have been sent there.

Vaults

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