Introduction to Vara Network: While reviewing a Binance report on blockchain technologies, I stumbled upon Vara Network in the section on parallel computation. Compared alongside known entities like Solana, Aptos, and others, Vara presented a unique approach that could significantly enhance scalability and execution.
Insights from Messari’s Report: A comprehensive analysis by Messari highlighted how Vara Network leverages an actor model to enable parallel execution, setting the stage for innovative blockchain applications. This technical foundation could be a game-changer, although we won’t delve into those specifics here.
Key Innovations for Users: Vara Network has introduced features that could dramatically boost its adoption, especially in gaming. These include signless transactions and gas reservations, which they refer to as ‘vouchers.’
Essentially, these vouchers allow new users to engage with apps without needing to buy tokens upfront, speeding up the adoption process, particularly in the gaming industry. This model is akin to how many mobile games operate—start for free and pay as you go—except here, all transactions are secured on the blockchain. Vara Network has several game examples deployed on the main net, I played Battleship and it was cool.
The second feature that I really enjoyed is the signless transactions. Typically, each action in a blockchain game requires a digital signature, but Vara simplifies this. By assigning some gas to a smart contract initially, players can then enjoy the game without constant interruptions for transaction approvals. This seamless integration offers a traditional gaming experience with the added benefits of blockchain technology, making it a potential industry disruptor.
Behind the Scenes at Vara Network: Delving deeper into the team, Vara’s development credentials are robust, with one of its founders, Nikolay Volf, being a pioneer at Parity Technologies. The project has also attracted direct investment from Gavin Wood, founder of Parity and creator of Polkadot, marking his first personal investment in a crypto project.
Innovative Tokenomics: Vara Network’s approach to managing its token economy involves an ‘inflation offsetting pool,‘ which helps keep inflation at zero by burning tokens equivalent to those created as rewards for validators. This model is designed to sustain the token’s value over time. This approach is interesting as high inflation is always a problem but the question is what will happen after the first year? I asked it in their Discord and got the responded that after the first year there will be a community vote to see if this pool should be replenished or not. In any case, at least one year the inflation is low, which means that the cost of the token that you can stake with them will actually be going up in value.
Staking rewards: The difference between Vara’s staking rate and tokens staked is practically double, which means by staking now you can double your rewards getting nearly an APY of 14% or even more depending on whether you restake your tokens or not. Info according to the Staking rewards page.
Market Performance and Potential: VARA token was listed on Coinbase on September 20, 2023. It is an interesting move and this also gives a lot of respect for the project as few can get listed on this exchange. This also gives assurance for the retail investor as they will not be manipulating the price or doing any pump and dump as a lot of coins are trying to do. The US has very strict rules and few Market Makers work in this market exactly because of it. The main way how market makers make money is by trading the token which leads a lot to market manipulations that is why the MM that works in the US maintains a market-neutral strategy.
We can see it reflected in the price, once the trading started a typical price spike could be seen, reaching $0.33 per Vara. After that, the price fell down in a way of a Dutch auction, until it found a lot of buyers and the prices stopped to consolidate and prepare for the next ascent.
We can see this pattern in mainly each crypto project and even in the stock market. Vara’s main level of support was $0.05 from which a consolidation started. From this level could be seen several spikes to the zone between $0.10-$0.14 per VARA giving the next levels for consolidation.
It is clearly seen that during the last 15 days it is actually in this zone. The last 7 days the price has been consolidating near the level of $0.10 cents per VARA but was not breaking it down, we even saw a false breakdown formed by two candles. And after that, an impulse toward the resistance level of $0.14 cents. Most likely during the next week this level will be trespassed and an impulse towards the next target of $0.175 will be seen. Next targets would be $0.2; $0.24; $0.29 per VARA.
If you are not a US citizen then your choice will most surely be Gate.io even though the liquidity is much lower than on Coinbase. With these exchanges practically all the world is covered, but hope to see some more listings soon.
Final thoughts: Although not widely known yet, Vara Network has the potential to emerge as a major player similar to Solana, thanks to its technological innovations, which can give multiple x in return to the price that it is tradable now.
Pros and Cons:
- Pros: Advanced technology, experienced leadership, low token price.
- Cons: Limited market recognition, availability on a few exchanges.
Summary: Vara Network is worth watching, with significant potential to reshape the blockchain landscape. I will be making some more research on this network and the applications that are being built on it.