We are happy to announce that Nation3 became the world's first cloud nation issuing a sovereign on-chain bond. The Nation3 DAO approved issuing a bond with $NATION as collateral on PWN — a platform for crypto loans with any kind of collateral, co-founded by a Nation3 citizen.
The Nation3 DAO bootstrapped itself issuing $NATION, and its treasury is well over $30m at the time of writing.
Thanks to that, the Nation3 DAO has started funding contributors that are building and maintaining (1, 2, 3, 4) services for citizens. But they get fully paid in $NATION right now, which is not ideal given its nascent liquidity.
People have bills to pay, and the DAO must go on…
Because the Nation3 DAO is bullish on its own token, it looked for alternative ways of raising operational capital that don’t involve selling $NATION right now.
Thanks to PWN, Nation3 issued an on-chain bond, allowing anyone to make offers with varying interest. Then the DAO can pick the offer with the lowest interest, and voila!
The DAO will then repay the loan principal plus the interest, but the lender always has the assurance of the loan being overcollateralized (in this case by ~300%).
We are extremely excited by the possibilities that this unlocks for Nation3, and how it will help us in building a zero-tax, Web3-powered, solarpunk society.
A guild designated by the Nation3 DAO will choose the best offer in PWN during the next couple of days: