📝Key Principles

The Metamorphosis protocol represents a self-driven bank, consisting of three core components: the Vault, Treasury, and the Metamorphosis social network. The protocol issues the DragonFly UFD stablecoin (United dFly Dollar), which is pegged directly to the US dollar at a 1:1 ratio. It also mints the utility token Up, distributed to all users of UFD, and mints NFTs within the network, granting voting rights in protocol governance, the local social network, and a share of the protocol's real-world income.

Liquidity generated from the sale of UFD is accumulated in the Vault to fully support the stablecoin. It is also placed in deposits and liquidity protocols, bank accounts, and non-risky stable derivatives, including government bond obligations. The Treasury distributes Up tokens among UFD users and allocates the protocol's profits to participants in the social network. Up tokens are freely tradable on the market and are used as the primary currency for creating NFTs of real estate, businesses, events, and collectibles in the virtual world. These NFTs provide their owners with real-world income from protocol activity and can be traded on the open market in the physical world. UP tokens enrich the Metamorphosis network without the possibility of withdrawal, reducing token inflation in the real world and providing an endless gaming, financial, and social experience.

Metamorphosis is a mirror of the real world where objects mimic real-world geolocation. This creates a virtual gaming economy with commercial activities intersecting the real world and the virtual world. Network participants can create advertising campaigns, events for friends and customers, engage in trade of virtual and real-world items, decorate their virtual properties with AR objects to view them through glasses or smartphones in the real world, discuss pressing issues in the virtual and real regions where their properties are located, and share news through the social network. The Metaverse economy is self-contained, accumulating all inflationary processes internally. It serves the following key economic functions:

• Continuous accumulation of value in virtual real estate, supported by real-world income that can be sold on the free market.

• Self-sufficient operation of the virtual economy, which, during periods of user inactivity, generates more income for other Metaverse participants, thereby creating a lever to attract new investors.

• Withdrawal from circulation and demand creation for Up reward tokens for UFD holders.

• Creating an economic linkage between virtual and real assets, thereby increasing their value in both worlds.

In essence, Metamorphosis represents an organic, next-generation social network that integrates the real and digital world of Web 3.0 into a unified economic mechanism.