Quote from: CryptoGrinder on January 05, 2018, 01:24:02 AM

Quote from: Block Chainy on January 03, 2018, 08:45:04 AM

Quote from: Trevor Lyman on January 03, 2018, 01:16:39 AM

Quote from: The Zah on January 02, 2018, 08:02:21 PM

Simple Token is amazing. This is a massive opportunity for businesses. 9 companies singed on with 50+ in the works. Here's the greatest thing about that...those companies have to purchase ST to use them. Given the demand this will see, 187mill supply is ridiculously low.

Keep in mind they stake their coin at a ratio to Simple Token. So they can use one ST to create 10, 100 or 1000 of their personalized token (the ST team may have limits to the ratio but so far I haven't heard any).

That is true. I have talked to Jason (the CEO of Simple Token) about it. Theoretically there is no limit, but if you make 1000 Branded Tokens (BT) out of 1 Simple Token (OST), 1 BT would only have a value of $0.001 if 1 OST = $1,-

To further detail.. this is what Jason said on the matter:

"A company before minting their first branded tokens can set the exchange rate of OST to BT at any rate you desire, but once you set it, it is fixed and cannot change. That ensures that companies don't change the rules on their customers.

So, let's say OST is trading at $1, and you set your exchange rate to 1 OST = 1000 BT. Then, each of your BT is initially worth $0.001.

The price of the BT does not fluctuate on its own, as it is not tradeable on secondary markets. So, each BT is always worth 1/1000th of and ST.

However, OST does fluctuate and could go to $2 or $10, or $.50.

A few factors come into play there.

First, price oracles could be used to set prices withing the company's branded token economy so that even if ST goes up and down, the relative price of the good or service in the Token Economy does not change. For instance, let's say in the example above that you allow your users to earn $.01 each time someone likes someone else's product review. By setting the value of the service at $0.01 using the price oracle, it would start off at 10BT per liked review, but would auto-adjust to say 20BT per liked if OST rose to $2.

The other concept that can be deployed is price stablization mechanisms. The company could sign up for a 3rd party to provide price stabilization to insulate its end users from price fluctuations. Imagine for instance if your user above earned 100,000 BT worth $100, and then the next day it was only worth $50 or suddenly was worth $250. The user would either lose faith in the system or could start hording or cashing out. With price stabilication mechanisms, the company could insulate its end users from wild swings in OST price, while the company uses upside for reserves/buffer against downward swings, a swell as the company could retain some profits from OST increases.

In general it would be nice to enable end users of BT to participate in at least some of the rewards of OST rising because of the community support for the various BT's, but at same time price stabilization mechanisms could be used to guard against unintended consequences from wild swings."

This sounds awful! Issuing coins to your customers that can then become more valuable than you wish, thus creating customer backlash! Am I missing something essential, or is this not a huge red flag for merchandisers? What price stabilizers could actually be used? Shielding customers from the fact that their BT's are worth more?

I feel like helping companies create their own independent ecosystems is a great goal. INDEPENDENT being a key word. Now, you'll have several companies tied together, loosely, and a confused customer base.

A company before minting their first branded tokens can set the exchange rate of OST to BT at any rate you desire, but once you set it, it is fixed and cannot change. That ensures that companies don't change the rules on their customers.

So, let's say OST is trading at $1, and you set your exchange rate to 1 OST = 1000 BT. Then, each of your BT is initially worth $0.001.

The price of the BT does not fluctuate on its own, as it is not tradeable on secondary markets. So, each BT is always worth 1/1000th of and ST.

However, OST does fluctuate and could go to $2 or $10, or $.50.

A few factors come into play there.

First, price oracles could be used to set prices withing the company's branded token economy so that even if ST goes up and down, the relative price of the good or service in the Token Economy does not change. For instance, let's say in the example above that you allow your users to earn $.01 each time someone likes someone else's product review. By setting the value of the service at $0.01 using the price oracle, it would start off at 10BT per liked review, but would auto-adjust to say 20BT per liked if OST rose to $2.

The other concept that can be deployed is price stablization mechanisms. The company could sign up for a 3rd party to provide price stabilization to insulate its end users from price fluctuations. Imagine for instance if your user above earned 100,000 BT worth $100, and then the next day it was only worth $50 or suddenly was worth $250. The user would either lose faith in the system or could start hording or cashing out. With price stabilication mechanisms, the company could insulate its end users from wild swings in OST price, while the company uses upside for reserves/buffer against downward swings, a swell as the company could retain some profits from OST increases.

In general it would be nice to enable end users of BT to participate in at least some of the rewards of OST rising because of the community support for the various BT's, but at same time price stabilization mechanisms could be used to guard against unintended consequences from wild swings. https://docs.google.com/document/d/1V6MZjojOYwVL8xoPQ09Pgzs93FUzBHLapcjcWOMHu18