# 3.2 DragonFly’s Solution

Disperse private equity chips and lower investment thresholds Problem: The high threshold of traditional private equity investment discourages retail investors. Solution: As a professional investment institution, DragonFly participates in the private equity round of high-potential projects and disperses chips to retail investors. Users only need to deposit a small amount of funds to share the growth dividends of high-quality projects through the platform. This model reduces the investment threshold from millions of dollars to a range that ordinary people can afford, completely breaking down the capital barrier. DGFY token incentives to solve information asymmetry Problem: Retail investors cannot obtain detailed information on private equity projects and find it difficult to make investment decisions. Solution: DragonFly introduces the platform token DGFY. Users deposit funds to obtain DGFY, and private equity chips of high-quality projects are allocated in proportion to their holdings. The platform is responsible for screening and evaluating projects. Retail investors do not need to study complex information on their own, and can participate with the help of the platform's professional capabilities. This mechanism reduces the obstacles caused by information asymmetry. Decentralized income distribution and improved liquidity Problem: The long lock-up period of traditional private equity investment discourages retail investors. Solution: DragonFly uses smart contracts to dynamically distribute returns. When the invested project is launched on the secondary market (such as a cryptocurrency exchange), users can obtain tokens or revenue sharing through DGFY and trade or cash out at any time. This model shortens the lock-up period of funds, improves the liquidity of investment, and meets the needs of retail investors for flexibility. Decentralized technology, circumventing regulatory restrictions Problem: Regulatory policies exclude retail investors from private equity investments. Solution: DragonFly uses blockchain and decentralized technology to build an investment platform that does not require traditional "qualified investor" certification. Through smart contracts and token mechanisms, the platform provides retail investors with opportunities to participate within a compliance framework, bypassing the strict regulatory restrictions of traditional finance while maintaining transparency and security.
