Updated: Apr 17, 2019
Hey..glad you are here to read my post. 😃
For those of you who are new to this space, let me introduce myself. I am the COO, Project Owner & Developer of MONET Blockchain Project. In this post, I aim to exhibit how MONET (ORB)- the token, is a unit of value.
As we are rapidly progressing towards our first Crowd Sales along with showcasing our project (details to be followed), hopefully by Spring ’19, our focus at present is very much ‘lasered’ to a fundamental question “how would MONET (ORB), our own ERC20 token incentivise itself?”. Actually let me rephrase it: “will MONET (ORB)appreciate in its value?”
Similar to real economies, token economies are equally prone to problems such as inflation, volatility, and crashes. The outcome of these problems is that long term viability of a blockchain business, similar to ours, gets affected. On the positive side of the picture, token economies make it possible for automatic data collection on transactions along with calculating useful metrics such as the total traded volume or the velocity. It goes without saying, that probability of price manipulation of tokens/digital currencies/alt-coins/cryptocurrency is almost next to impossible, unlike the fiat, and unless they are traded on a centralised exchange.
Understanding the long-term viability of MONET (ORB) tokenomics
To really scrutinise the long-term viability of our token, I’ll be addressing 8 questions raised by Utsav Jaiswal in his article What is tokenomics and how it can make or break your ICO? His post received 556 claps at the time of writing, which means its fairly popular on Medium and agreed upon by many.
1. Does MONET (ORB) has any utility within the ecosystem?
Yes, it does. MONET (ORB) is an ERC20 token, which means it is forked from Ethereum, hence supports the wider ecosystem growth. Not only that, since it will be a native digital currency in its own market place called MONET Dapp/platform, the utility is fairly visible.
2. Is the token capable of resisting inflationary pressures?
Inflationary pressure refers to the “demand and supply-side pressures that can cause a rise in the general price level. Demand-pull inflationary pressure is greatest when actual GDP exceeds potential GDP causing a positive output gap.” So what cause inflation? Generally speaking “economists believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.” Implying above 2 definitions on to the token-economies, we can conclude that a token that is in limited supply resists inflationary pressure. Next, we can also conclude that the supply/demand of the token is managed by creating a long-term demand for the token.
a. MONET (ORB) has limited total supply 100,000,000;
b. 50% of the total token supply is locked for 5 years; and 10% founders’ tokens locked for 2 years. This practice is also known as vesting, ensuring that tokens are released in the market in a well-managed manner;
d. 40% of the total token supply will be released during multiple crowd sales events within first 2 years of announcing Crowd Token Sales Event.
e. In the following 5 years, the remaining 50% of locked tokens, would be released within strategically-designed schedule. The token sales would be announced well-ahead of time.
3. Is MONET (ORB), scalable/denominational?
Yes, it can be bought in 18 fractions.
4. Is MONET (ORB) a store of value?
First and foremost, let me be very honest here. Value is subjective, hence you may or may not agree with me and that is totally fine. You don’t have to agree if you don’t want to.
Now on to how we, the MONET Team believes that our token is a store of value. Please note that there are 2 types of tokens when it comes to store of value: native tokens and non-native tokens.
Non-native tokens are usually more speculative. They give you exposure to a startup business that’s looking to use blockchain in some way. These tokens are often required to use in the company’s business you’re betting on. But as a rule, you get no ownership in a public company. Nor can you ever expect a swap for actual shares. The issuers are almost invariably private start-up companies, usually very small, and often with little or no experience.
Native tokens on the other hand, are directly representing the underlying software technology, called blockchain or Distributed Ledger Technology (DLT). Also, please also note that “it takes energy or work or some valuable contribution to create the native token”. Investing in native tokens is like buying the land where a city will be built.
MONET (ORB) Token and platform are designed and being developed to offer maximum utility to users (developers, buyer and sellers). In providing this utility, the inherent stickiness associated with the underlying asset are: a. theft immunity, b. credibly low inflation (strict guidelines to keep security threats at lowest possible levels and collective commitment to low inflation) and c. low cost of conversion (utility and decentralisation).
Now on to the most exciting aspect of MONET (ORB) as a native token: 20 million MONET (ORBS) tokens are/will be sold under the label of “Security Tokens”. This means MONET (ORB) drives its value from an external, tradable asset. Because 20 millions tokens are deemed as a security, they are subject to federal securities and regulations. We proudly claim Medibitcoin Network Pvt. Ltd. as complaint with The UK Corporate Governance Code 2018. The rewards of meeting regulations properly mean that MONET (ORB) Tokens have immensely powerful use-cases.
5. Is MONET (ORB)fungible?
MONET (ORB) is interchangeable, uniform, divisible, and developed as per ERC20 &ERC1400 standards.
6. Would MONET (ORB) be acceptable to the people at large?
MONET (ORB) is accessible and available for anyone who wants to purchase the token with the purpose of either investing in the project, or buy the tokens now at much cheaper rate and save them for later use to use the service. A quick reminder: we would be offering a service that will address a problem, affection millions of people, every year, across the globe. The problem is misdiagnosed or undiagnosed medical conditions. MONET Platform will be connecting patients seeking 2nd opinion on their diagnosis with consultative healthcare practitioners (specialist doctors), across the globe.
7. Is MONET (ORB) traded on an exchange, yet?
Not yet. Being a fairly young company and staying true to the core of blockchain technology, we are still evaluating whether to get listed on centralised or decentralised exchanges. Giving you a very quick perspective, centralised exchanges such as Binance, Coinbene etc. a. doesn’t list security tokens (in best of my knowledge and at the time of writing) and b. charge quite high fee for listing the token. This leaves tokens subject to price manipulation. Decentralised exchanges such as Coinsutra on the other hand, have transparency at their core.
8. Does MONET (ORB) incentivise its use?
Yes, it does. First incentives can be earned by different means: a. exchange of value; b. early bird rewards (bonuses/discounts); c. incentives provided when consultant and patients leave feedbacks/reviews; and d. dividends. Second, users will be rewarded for taking actions on the Platform, with the goal of creating disincentives for malicious or fraudulent behaviour. Third patients will also be rewarded to share their data with our partners for research and development purposes.
Is MONET (ORB) a unit of value? As I always say, value is subjective hence I’ll leave it for you to answer. Of course if you need more information or elaboration on any of the above points, please feel free to get in touch with me
Any comment, feedback, improvement suggestions are appreciated. Thanks for reading. If you enjoyed reading this post, please ♥️ & share.. the more, the merrier!
About the Author
I am an entrepreneur, researcher, analyst, crypto-enthusiast & believer. I am also one of the founding members of monetorb.com — a blockchain platform (under-development) connecting patients seeking 2nd opinion on their primary diagnostics with consultative healthcare, across the globe. Like me content? 🙂Follow me on Twitter & Telegram.
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