Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by crypto currencies. In the U.S., the Federal Reserve and Securities and Exchange Commission (SEC) define the rules for centralized financial institutions like banks and brokerages, which consumers rely on to access capital and financial services directly. DeFi challenges this centralized financial system by empowering individuals with peer-to-peer digital exchanges. DeFi eliminates the fees banks, and other financial companies charge for using their services. Individuals hold money in a secure digital wallet, can transfer funds in minutes, and anyone with an internet connection can use DeFi.
The first step is to plan the layout of the coin. ICOs can be structured in a few different ways, including when a crypto currency project wants to raise money through an ICO, the project organizers. A company can set a specific funding goal or limit, which means that each token sold in the ICO has a preset price, and the total token supply is fixed; an ICO can have a static supply of tokens and a dynamic funding goal—this means that the amount of funds received in the ICO determines the overall price per token, some ICOs have a dynamic token supply but a fixed price, meaning that the amount of funding received determines the supply.
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