In this current market of crisis, businesses are heavily impacted and forced to adapt to changing market conditions amongst a changing world. Many businesses are struggling to find appropriate funding through traditional means and instead opt to find alternative ways to fund their business. This is often done through business owners putting up security such as their house, car or some other form of assets to get a loan from banks or a third-party lending platform. This has also been the case in the eCommerce space for a long time, where businesses struggle to get capital from investors or angel investors as these investors tend to only look for innovative solutions or products in the market which will net them a substantial profit.
In our study through primary research using the customer base of our partner The Web Company, we have identified that most business owners are struggling in these market conditions and are opting to borrow from banks in order to stay afloat. We believe that there are better alternatives for businesses when it comes to capital raising as we believe it can be done through more efficient and secure means.
How would Token Network solve it?
We have seen numerous rise and falls of ICOs and IEOs done by exchanges in attempts for blockchain companies to receive funding. Token Network, on the other hand, are working with Nuls Blockchain where they are introducing a new and alternative funding method called POCM. This method allows Nuls token holders to stake their Nuls in projects and as a consequence help project owners earn Nuls. We really like this model for investors and community token holders as they do not lose their asset since they can un-stake Nuls and invest elsewhere. This means that in theory, investors are not losing their Initial asset unlike in ICOs where users are given the asset and investors exchange the asset for returns. The POCM model from Nuls gives us the ability to swiftly integrate this concept into the eCommerce business space.
Token network will offer features that will give business owners to issue their own tokens which will be integrated into Project Alexius. This will make it easier for business owners to issue out tokens without any programming knowledge and manage their own token network. In Project Alexius, we will be laying down a blueprint for businesses to follow and fully guide them through the process of creating tokens, managing tokens as well introducing models which helps incentivise the growth of the business’s community. Token Network is redefining the way eCommerce entrepreneurs can help raise capital for their business and offers an alternative solution as opposed to traditional means by allowing the wider community to help fund their business.
What are the different types of tokens businesses will be able to issue?
We aim to introduce Utility Tokens initially and plan to also introduce Security Tokens at a later date. With Utility Tokens businesses can offer the following blueprint mechanics:
– Instore discount tokens
– BuyBack Programs and community rewards from buybacks like an airdrop
– Token supply burning from transaction fees collected or profit from stores
(Businesses will not be limited to only one of these features and are able to utilise all three features simultaneously.)