OptiToken On Cryptographic Tokenization & Economics
We strongly believe there is a fundamental lack of understanding of the power of economics and how Cryptocurrency and tokenization has changed what can be done with general asset exchange in general now with blockchain and similar technologies, this is a common problem with many projects. It’s perhaps possible to say that at this stage of development of cryptocurrency, any project that isn’t taking measures to protect its currencies price or counteract negative price manipulation is not fully grasping and/or developing the disruptive technology at hand.
OptiToken utilizes supply and demand Economics to affect the price of its cryptocurrency in a positive manner only. Nurturing demand and creating probably fair scarcity. Why is it fair? The scarcity created by OptiToken is fair because the tokens removed from circulation are removed forever via destruction. This is opposed to tactics implemented in history to affect supply and create scarcity through the means of temporarily removing supply by locking something up in a vault for a given time period. These are the tactics implemented by huge corporations with commodities they operate their core businesses on. Take De Beers and global diamond supply, Standard Oil and the US oil supply, for example.
Another great use case is what happens to prices in an economy when the opposite of scarcity is created. Take for example central banks and international governmental bodies, some of which still practice the mass printing of currency without simultaneous matching production growth in their economy, in hopes of fixing short term monetary problem(s) at hand. Though immediate monetary obligations can be met with this strategy, this causes an influx in money supply, thus making each money unit less scarce. The result when this is overdone is a mass appreciation of prices of goods in the economy, or, in other terms, hyper-inflation.
https://medium.com/@OptiToken/optitoken-on-cryptographic-tokenization-economics-c886cf8cb59c
