Everyone has seen the
$CT Foundation announcement. But there’s a question worth answering before we move past it as just “regular” news.
Why does
@ConcreteXYZ need a foundation when concrete protocol already exists?
I think understanding that makes the whole announcement a lot more interesting.
Concrete protocol and the concrete foundation serve different purposes within the same ecosystem.
The protocol remains the technology people interact with, the smart contracts, vaults and infrastructure behind concrete on-chain financial products.
The foundation is going to be the organization will be established to support governance, distribute the
$CT and help with how governance decisions are carried out.
Then there’s Blueprint finance as we all know, the company itself behind concrete and all other sub products. And concrete network, one of the foundation’s ecosystem is going to be the body issuing CT and making it available to trade
The names have different responsibilities. I know its a lot right now,but think about what happens as a protocol grows.
Someone has to build and maintain the technology. A system has to be in place for the utility to function longterm.
But they also need to be processes for deciding which strategies can be approved, how treasury resources are used and so many others
These decisions affect the people and the institution using the system and concrete cares about its users to just engage in this stuff blindly without a solid structure in place.
What I simply mean is that concrete is putting a more defined structure around those responsibilities as the ecosystem expands. The foundation will provide a safe environment in fhe ecosystem for governance and treasury administration, while the protocol remains the infrastructure those decisions will be enacted on.
That is where
$CT comes in, depending on the decision the foundation reaches, active participants may qualify for token rewards, but those rewards are not guaranteed.
And holding
$CT does not mean owning shares in Concrete or having a right to its profits, don’t forget that.
What interests me here is how that concrete connects this to the institutional DeFi they’ve been building.
Concrete earn provides access to yield strategies. Vaults provide the underlying vault structure. Partners can build their own products using Concrete’s infrastructure.
AssetCX addresses another requirement, institutions whose underlying assets must remain with a qualified custodian can receive a 1:1 receipt token designed for use across the Concrete ecosystem (we already experienced this last year with partners like dolomite, berachain ecosystem)
That helps explain why the governance structure matters alongside the products. More users will definitely depend on concrete infrastructure in the long run hence that is why this strategies are being implemented now.
There is still alot to be rollout ahead.
What users like you and I should be paying attention to is which decisions participants (users and not institutions) can actually influence, how the governance will work and how changes get implemented.
For people following Concrete, there’s a lot worth staying engaged with here
This announcement gives us a clearer picture of how concrete intends to organize that next stage. We’ve been building for close to 2 years now
Excited for what is to come definitely.
Gmcrete