In August 2022, the famous decentralized crypto mixer, Tornado Cash, received some heat from the US Treasury. Eventually Tornado Cash got sanctioned and blacklisted. This left a wide gap in the market for a reputable mixer that could ensure users’ transactions remained private.
The same month, a group of developers began working on Tornado Cash clone – Void Cash. Let’s dive into this privacy-centered cryptomixer and determine whether it’s a good investment in 2023 and beyond.
What is Void Cash?
Void Cash is a decentralized payment protocol that eliminates link between recipient and the destination address. These kinds of protocols are also called Mixers or Tumblers. For more information about mixers read our article on what cryptomixers are.
How Does Void Cash Work?
Most mixers have a duration of time that the crypto assets have to remain in the system (being mixed) before they can be withdrawn. With VoidCash, it is almost instant and without additional gas fee.
Void Cash utilizes a smart contract (computer program) that accepts deposits which can be withdrawn to a different specified address. This way the users remain anonymous. There are no timed withdrawals and the user can make them whenever they are ready.
Void Cash had a stealth launch in August and continued to build quietly.
A deposit made to the smart contract is automatically added to a list of deposits and sits there until the user is ready to withdraw. After depositing, the user receives a secret hash, which they will use at the time of withdrawal to prove they are the initial depositor.
When the user decides to withdraw, they will provide the secret hash (proof) and the smart contract checks the proof. If the proof checks out, the smart contract will transfer the deposited funds to an address specified by the user for withdrawal.
Void Cash (VCASH) Tokenomics
Void Cash has its own native token – VCASH – which has a total supply of 1,000,000,000 tokens. All of these tokens are in circulation and hence, investors do not need to have fear of being dumped on by early investors or the team.
Moreover over 37% of the total supply is being staked by holders. This number keeps increasing as more investors opt to stake the token. That number stands at 40% as of the time of writing this article. That’s 405,048,887 VCASH locked away in the VoidCash pool.
If you know anything about staking, you know that it is not counted as part of circulating supply. This means that the actual circulating supply of VCASH is 594,951,113 (at the time of writing)
VCASH can also be used for voting in the Void Cash DAO (which will be launched in the future). The asset can also be used to collect staking rewards from the mixers and fees from the bridge. Additionally, users who hold VCASH can use the mixer for free. The team is working on adding more utility to VCASH.
Void Cash Staking
The Void Cash staking program allows holders to stake their VCASH tokens and earn some VRT tokens in return as rewards for staking. Stakers receive 0.4% out of 0.6% fee that Void Cash dApp accrues from deposits (since withdrawals are not charged any fees).
As a staker, you will receive the amount of rewards proportional to the amount of stake you have. The rewards are in the form of VRT, another token which can be redeemed for Ethereum. This is because there are no VCASH tokens reserved for paying stakers. Hence, the team had to create a separate token for this purpose.
However, in the future, as the dApp accumulated fees (in form ETH) , staking rewards will be distributed at the beginning of every week directly to stakers wallet addresses.
VCASH Price Analysis
VCASH is currently most actively traded on Uniswap and has a nice decent liquidity of $161,000. Roughly 2 months old since it started being traded, VCASH has risen +39,660%. Currently sitting at around $0.00142195 per token, VCASH is down -16.2% in the last 24 hours.
The VCASH chart shows an interesting pattern in the hourly time frame. Price just broke the descending triangle and is headed for the 200-day EMA which should serve as a strong support. The prie broke above this indicator on November 30, 2022 and has been trending above it since.
About the Void Cash Team
The team has chosen to remain anonymous, a stance that has now become standard after the Tornado Cash sanctions. The OFAC accused Tornado Cash of allowing billions of dollars in money laundering through cryptocurrency on their platform, something which was obviously not their primary business plan.
For this and many other safety reasons, the team has chosen to remain anonymous. Maybe if the laws become a bit more lenient in the future they will dox themselves, but for now, such is the situation.
Closing
In hindsight, it is evident that Tornado Cash had achieved a level of decentralization that made the OFAC uncomfortable because in the current financial system, if your financial transactions are not monitable, then you must be doing something shady. Void Cash wishes to fill the void (pun intended) that their predecessor left. It will be exciting to see how this young titan grows.
Important Links
Buy on Uniswap: https://app.uniswap.org/#/swap?outputCurrency=0x37cd4e8875e3edaffdfe9be63958f07effbd0bfd
Twitter: https://twitter.com/voidcasherc
Telegram: https://t.me/voidcashportal
Web: https://void.cash
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.
