Token smart contracts

[Bainzy]

Hi Guys,

Im a newbie not just to this for forum but the blockchain, crypto and smart contracts etc...

However being an entrepreneur I am very interested in finding ways to make some money.

I have a question regarding a token:

Is it possible to put in the tokens contract that the monetary value of this token can go up and down but never less than an X figure of fiat currency because the token is based on consensus that X=X because value of X cannot go lower than X?

Would be very grateful for some advice on that 

Regards

Bainzy

[Bainzy]

Also, if you are doing an erC20 token Can you put say 10 terms and Conditions in the ContraCt, if so are there any limitations to what those t&Cs are?

For example:

If all pre mined tokens are distributed, we reserve the right to mine more?

[jjjfff]

Hi Guys,

Im a newbie not just to this for forum but the blockchain, crypto and smart contracts etc...

However being an entrepreneur I am very interested in finding ways to make some money.

I have a question regarding a token:

Is it possible to put in the tokens contract that the monetary value of this token can go up and down but never less than an X figure of fiat currency because the token is based on consensus that X=X because value of X cannot go lower than X?

Would be very grateful for some advice on that 

Regards

Bainzy

That's impossible within the blockchain.

To do that you'll need fiat money reserves at a bank. Then you can increase and reduce reserves to keep a certain proportion to your tokens. If you have 2 tokes for each dollar in reserve you'll make its value U$ 0.50

Stablecoins THEORETICALLY hold their 1:1 parity with the dollar by having as many dollars as there are coins.

(Whether they really do have these reserves or not is another story altogether)

[iconoclast]

Hi Guys,

Im a newbie not just to this for forum but the blockchain, crypto and smart contracts etc...

However being an entrepreneur I am very interested in finding ways to make some money.

I have a question regarding a token:

Is it possible to put in the tokens contract that the monetary value of this token can go up and down but never less than an X figure of fiat currency because the token is based on consensus that X=X because value of X cannot go lower than X?

Would be very grateful for some advice on that 

Regards

Bainzy

You would need more than code to establish a relationship between the price of a token and a fiat currency. You would have to create a mechanism for users to convert their tokens into fiat currency. You would then also have to have enough of that fiat currency to payout if everyone decided to redeem. Generally when ever you set up a peg like this you end up with a stable coin that does not rise in value.

[Bainzy]

Hi Guys,

Im a newbie not just to this for forum but the blockchain, crypto and smart contracts etc...

However being an entrepreneur I am very interested in finding ways to make some money.

I have a question regarding a token:

Is it possible to put in the tokens contract that the monetary value of this token can go up and down but never less than an X figure of fiat currency because the token is based on consensus that X=X because value of X cannot go lower than X?

Would be very grateful for some advice on that 

Regards

Bainzy

That's impossible within the blockchain.

To do that you'll need fiat money reserves at a bank. Then you can increase and reduce reserves to keep a certain proportion to your tokens. If you have 2 tokes for each dollar in reserve you'll make its value U$ 0.50

Stablecoins THEORETICALLY hold their 1:1 parity with the dollar by having as many dollars as there are coins.

(Whether they really do have these reserves or not is another story altogether)

What if you built into the contract that the consensus is that x=x and that x is backed by an asset based both of things based on consensus.

Fiat is only based on faith, if a token can produce faith and be backed surely it is more valuable than fiat?
Also like fiat what is to stop tokens being created the same way fiat is, by debt, or by physical assets.

IT IS WHAT WE BELIEVE IT IS...... THAT'S MONEY TODAY, WHY NOT A DIGITAL ONE THAT DOES THE SAME BUT BETTER??

[maculeth]

I think it can't, because how many limits will go up or down will never be determined by the smart contract itself. for example it can be lower than X, then it will be a loss, and if it is higher than X, then it is a big profit.

[Lakai01]

No, not possible in the contract itself, it has no relation to any monetary amount of the coin. There are ways to ensure that the token wont be traded below a certain price, some of them like backing the price with other funds were already mentioned.

I dont know the purpose of the token but if its used internally in an application you could launch your own marketplace like ANN did. Any fiat transaction within ANN buys ANN tokens on an internal marketplace for a fixed price. People can offer their ANN in this marketplace but never sell them directly.

[josephdd1]

Hi Guys,

Im a newbie not just to this for forum but the blockchain, crypto and smart contracts etc...

However being an entrepreneur I am very interested in finding ways to make some money.

I have a question regarding a token:

Is it possible to put in the tokens contract that the monetary value of this token can go up and down but never less than an X figure of fiat currency because the token is based on consensus that X=X because value of X cannot go lower than X?

Would be very grateful for some advice on that 

Regards

Bainzy

That's possible only for asset backed tokens. But its a two way street, for example, you can define that the price of X = 1 it cannot be X => 1
That is how stable coins work by pegging their value to a fiat currency or an asset.

this is as far as I understand it anyways maybe someone with less vodka in their system can say this much better.