Real Value Tokens - creating tokens with real value locked in
Introduction
For awhile now I have been following the various ICO's being launched and jumped on and have also written previously about many ICOs being scams.
In the meantime I have been working on building a model for a fairer way to work together in a business. As a part of this I have been looking for a fairer and safer way to raise funds.. Below are my initial notes on a way of creating a new way of marketing coins for the purpose of raising funds.
XXX Valuation
A single XXX token’s real value would be based upon the amount of ETH that is in the XXX economy (held in the smart contract). For example, XXX tokens would be created anytime someone chooses to buy some XXX Additional XXX value is created by the utilisation of the XXX system. XXX system utilisation is detailed below.
Initial value set at 1ETH for 100 tokens.
However, unlike a typical ICO – the issuance of XXX Tokens will continue for as long as there is demand. As ETH flows in then XXX Tokens are created. This removes the rush on purchase of tokens, it also insures that everyone can get tokens.
10% of XXX Tokens will be held for the ongoing development of the XXX System.
XXX Valuation Example
Buyer A sends 10 ETH to XXX, which results in Buyer A receiving 900 XXX Tokens and a further 100 XXX Tokens being issued to the XXX company. The value of each XXX Token is 0.01 ETH.
HOWEVER, once XXX is operational and has collected more ETH (outside of XXX Token sales) then the cost of XXX Token purchase increases as well. Using our example above but assuming that there is now 100 ETH in the XXX Economy the cost of token purchase is formulated such that the current XXX Token owners potential profit value is not decreased, that is we are guaranteeing that the price of a XXX Token can not decrease due to supply.
So the current value of any single token can be calculated like so:
TETH / IR = TV
Where:
IR – Issued XXX Tokens
TETH – Total ETH in XXX Economy
TV – Token Value
So...
100 / 1000 = 0.1
That is to say each issued XXX Token is now worth 0.1 ETH. Further purchases of XXX Tokens need to insure that this value is retained. So the formula for calculating further XXX Token purchases is:
RPA x (TETH/IR) = PRICE
Where:
RPA - is the number of new tokens being purchased.
So, for example if a buyer wants to buy a further 5000 tokens then the cost is 500 ETH:
5000 x (100/1000) = 500
After this transaction, there would be:
XXX Tokens Issued: 6000
XXX Economy: 600 ETH
Which means the XXX Token value remains as it was before the additional XXX Token purchases.
XXX Fluidity
You do not need to use a market exchange to cash out your XXX Tokens. At anytime you can “sell” your XXX Tokens back to the XXX Company at the current buy rate without any extra fees other than GAS needed.
Anytime XXX Tokens are sold back theses tokens are destroyed and the equivalent ETH is sent to the user.