UBD Network blog

UBD and UBDN: Which token gives me more Benefits

UBD & UBDN tokens

UBD Network aims to provide a user-friendly and unrestricted DeFi asset management tool. It enhances ease of use, security, and privacy by digitizing trust products and eliminating intermediary restrictions, serving both your needs and purposes effectively.
In other words, UBD Network is the first and the biggest #DeTrust ecosystem, and this ecosystem is operated by two main substances: The UBDN and the UBD tokens.
One of the most popular questions from our community is “What is the difference between these two tokens, and what token bring me more benefits in the future”
Let’s figure out the roles of UBDN and UBD on the first #DeTrust inheritance platform.

UBDN Token: The Utility Token

UBDN, on the other hand, functions as a utility token within the same ecosystem. Utility tokens are used to provide users with future access to a product or service; in this case, the UBDN token grants its holders certain rights and capabilities within the UBD ecosystem.
Holders of UBDN can become what are termed “Keepers,” who play an active role in supporting and maintaining the network infrastructure.
Keepers (Holders) with the requisite amount of UBDN tokens, that is 1024 UBDN can participate in “Epochs,” which are defined periods during which these participants can earn rewards — paid in UBD — based on their contributions to the network. This could include activities like validating transactions, contributing to the security of the platform, or other forms of active engagement.

UBD Token: The Stablecoin

UBD, or the United Blockchain Dollar, is an algorithmic stablecoin. This means it is a type of cryptocurrency designed to maintain a stable value over time, typically pegged to a conventional currency, in this case, the US dollar.
This peg is achieved through various mechanisms, which might include holding reserves of other assets. In the case of UBD, these reserves include major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), as well as other stablecoins like USDT and DAI.
The primary purpose of UBD is to offer a stable digital currency option that minimizes the volatility often associated with cryptocurrencies, making it more suitable for everyday transactions, savings, or as a predictable store of value.
It aims to blend the benefits of cryptocurrencies — such as decentralization and borderless transactions — with the stability of traditional fiat currencies.
UBD itself is the first decentralized stablecoin globally that offers its staking mechanism. It can be challenging to understand how various organizations fund user rewards, especially following last year’s crises driven by human management errors. This highlights the significant risks of entrusting fund management to such entities.
Therefore, United Blockchain Dollar provides transparent staking terms governed by an immutable blockchain algorithm. This system is not influenced by any personal factors but operates through a decentralized algorithm.
Setting up a stake with UBD is as straightforward as receiving monthly payouts from its automated reward system, and UBD is accessible to everyone without restrictions.
With United Blockchain Dollar, there is no minimum stake requirement — you can start with as little as one UBD. Additionally, there are no lock-up periods, allowing users to withdraw their funds anytime without penalties.
Staking UBD means the longer you keep your funds, the higher your interest rate and returns will be. The interest rate depends on how long and how much you stake.
To maximize your Annual Percentage Yield (APY), it’s beneficial to accumulate both UBD and the duration your funds are held.
Users have the flexibility to unstake their UBD at any time and collect their earnings, but doing so will forfeit the accrued time and interest rates.
Our users also benefit from compound interest, which effectively increases their investment, especially significant given that staking with UBD could yield up to a 10.5% APY.

Key Differences

  1. Purpose and Use: UBD is designed as a stable store of value that can be used in transactions where price stability is paramount. UBDN, however, is not meant to serve as a stable currency; instead, it is used to facilitate participation and reward mechanisms within the UBD ecosystem.
  2. Value Stability: UBD is pegged to the US dollar and maintains value stability through asset backing. UBDN’s value can fluctuate based on factors like network participation, demand for the token, and general market conditions in the crypto space.
  3. Role in Ecosystem: UBD serves all users looking for a stable digital currency, while UBDN is targeted at users who want to be more actively involved in the governance and maintenance of the network’s infrastructure.

How to store UBDN and UBD

We have adopted a key rule within the UBD Network known as “Hold and Gain.”
This rule stipulates that users should always retain their assets in their wallets and refrain from transferring them to others. Additionally, our unique UBD Network Algorithm keeps track of any movement of funds.
This approach not only simplifies the user experience but also greatly enhances the security of the funds, drastically reducing the likelihood of potential attacks.
By differentiating the roles and uses of UBD and UBDN, the UBD ecosystem aims to provide both stability through its stablecoin and engagement through its utility token, catering to a broad range of needs within the cryptocurrency community and the whole DeTrust ecosystem.
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