We are considering the utilization of a new model that connects the token economics with the success of the business in a very explicit way.
While still subject to final revisions, we anticipate that at launch we will charge market participants $5 per hour to access the marketplaces. Market participants will pay this fee in their currency of choice (USD, GBP, HKD, BTC, ETH, etc) but behind the scenes this will facilitate their purchase of an Agorai token from a queue into which investors and contributors can submit their tokens. At launch one Agorai token will be purchasing 1 hour of marketplace access. Therefore, as long as there are people using the marketplace, there will always be an option for holders of tokens to sell their tokens at this price.
Upon the completion of the hour this token will be burned and a new one will be created and granted to the contributors of the applications and data, as a pro-rata reward for their usage by the marketplace participants. The recipients can either hold their tokens or submit them back into the queue to be purchased by users.
Once a specific number of tokens have been burned, which will indicate that the usage of the marketplace is growing, the smart contracts in the tokens will trigger an increase in the time for which a single token allows access to the marketplace. This will allow the tokens to continue to grow in value as the marketplace expands, without having to change the $5 per hour price that people and corporations are paying to access the marketplace . There is no limit to how valuable each token could become if the marketplaces are leveraged as anticipated. For example, if the rules that govern the smart contracts in each token dictate that a token grants five hours of access based on the marketplace usage that has occurred to date, that token will be sold for $25 USD. A more detailed explanation of this can be found in our token economics white paper which will be published in the coming days.
We believe that this model will become the standard for token based systems in the future for a few very important reasons:
- It allows everybody to access the marketplace with fiat currency, which is essential for most corporations and many people
- We have created an explicit link between our token and the fiat payments that are being made to our company
- As the customer base of Agorai increases, built-in increases to the time each token is worth creates more upside for the holders of tokens and creators of value in the marketplace
Simply put, we will have anchored our token economics to the business value that the marketplaces are creating.