Difference between revisions of "Token"

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=== Term history of the "Token" ===  
 
=== Term history of the "Token" ===  
 
Notions of "token" have been used for at least several centuries; in fact, it is a local money substitute. Bright examples: game currency or subway token.
 
Notions of "token" have been used for at least several centuries; in fact, it is a local money substitute. Bright examples: game currency or subway token.
If you have a token of the Moscow Metro, you can't use it in St. Petersburg, that's the basic principle and the difference from money, which has a wider range of possibilities.
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If you have a token of the Moscow Metro, you can't use it in St. Petersburg, that's the basic principle and the main difference from money, which has a wider range of possibilities.
  
 
=== Legality of the token ===
 
=== Legality of the token ===
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" It operates in the same way that a traditional stock company and falls under the regulatory system..."
 
" It operates in the same way that a traditional stock company and falls under the regulatory system..."
 
This position was made by the SEC on July 25, 2017, and it gave its official opinion on ICO, DAO tokens, and their legal status.
 
This position was made by the SEC on July 25, 2017, and it gave its official opinion on ICO, DAO tokens, and their legal status.
Based on the results of this decision, the tokens fall under the laws for stock companies.  
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Based on the results of this decision, the equity tokens fall under the laws for stock companies.  
 
All emitters are obliged to have a corresponding registration for the issue of tokens and registered capital.
 
All emitters are obliged to have a corresponding registration for the issue of tokens and registered capital.
  
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A security token is an investment blockchain product that does not give its owner rights for company profit and ways to participate in the company management.
 
A security token is an investment blockchain product that does not give its owner rights for company profit and ways to participate in the company management.
  
Investors buy security token for getting profit out of it sale as they expect that it value will be increased. The security token value basis of the corporate efficiency-related indicator.  
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Investors buy a security token for getting profit out of its sale as they expect that its value will be increased. The security token value basis of the corporate efficiency-related indicator.  
  
 
Not every cryptocurrency is considered to be a security token.  
 
Not every cryptocurrency is considered to be a security token.  
 
Most cryptocurrencies, such as BTC and ETH, do not fall under this classification.
 
Most cryptocurrencies, such as BTC and ETH, do not fall under this classification.
 
This is what investors call "assets", such as gold or silver.
 
This is what investors call "assets", such as gold or silver.
Their price rises and falls not on the basis of any basic enterprise or the success of the company and product, but on market movements - the demand and supply of the asset itself.
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The rises and falls of the price not based on any business core or on the success of the company and the product, but on market movements - the demand and supply of the asset itself.
The main difference of security is that it does not give the investor a share of the profit and ways to participate in company management.  
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The main difference of security token is that it does not give the investor a share of the profit and ways to participate in company management.  
  
 
Examples of such tokens are [http://%5Bhttps://polymath.network%20Polymath Polymath], [https://harbor.com/ Harbor], [https://www.tzero.com tZERO].
 
Examples of such tokens are [http://%5Bhttps://polymath.network%20Polymath Polymath], [https://harbor.com/ Harbor], [https://www.tzero.com tZERO].
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'''Asset-backed tokens Debt tokens'''
 
'''Asset-backed tokens Debt tokens'''
  
Liabilities of a company or individual that are linked to actual goods or services.
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Debt tokens are the liabilities of a company or an individual that are linked to actual goods or services.
In this case, the guarantor of the token execution is the company that issued the token and provides the service or the product.
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In this case, the guarantor of the token execution debt is the company that issued the token and provides the service or the product.
 
The Asset-backed token becomes a digital copy of the asset or service that is represented in the physical world.  
 
The Asset-backed token becomes a digital copy of the asset or service that is represented in the physical world.  
  
 
Actual example, the production company https://zrcoin.io/prod makes binding a token with the product "Synthetic zirconium dioxide".  
 
Actual example, the production company https://zrcoin.io/prod makes binding a token with the product "Synthetic zirconium dioxide".  
  
''Network tokens [[Minter]]'''  
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'''[[Minter]] network tokens'''  
  
Network activities such as: sale, purchase, [[DPOS]], issue token .
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Network activities such as sale, purchase, [[DPOS]], token issue, are performed with the main BIP token.
are performed with the main BIP token.
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Therefore, the BIP token is a Native token.
Therefore, the BIP token is a Native token.
 
 
 
Custom tokens issued inside Minter network can belong to different categories. Everything depends on the company that has issued the token, and the conditions it provides to its users and investors.
 
  
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Custom tokens issued inside the Minter network can belong to different categories.  Everything depends on the company that issued the token, and the conditions that it provides to its users and investors.
 
[[Category:Terms]]
 
[[Category:Terms]]

Revision as of 20:59, 11 October 2019

Token.jpg

Token is a balance measurement of a cryptocurrency asset. Accounting is done by blockchain and consensus algorithm. Access to tokens is provided through special programs and applications with help of the keys and electronic signature.

Term history of the "Token"

Notions of "token" have been used for at least several centuries; in fact, it is a local money substitute. Bright examples: game currency or subway token. If you have a token of the Moscow Metro, you can't use it in St. Petersburg, that's the basic principle and the main difference from money, which has a wider range of possibilities.

Legality of the token

The case of a single token sale, with the exchange for the national currency, is regulated by the laws for the sale of goods and services. The cryptocurrency tokens are an innovation that is not yet regulated in many countries. The case of Libra shows a great interest in the token of technology companies, as well as the defects of the existing legal framework. Governments and regulatory authorities are striving for innovation, but are also trying to maintain the control and value of the national currency. Today in Russia there is no established regulation system for the tokens.

In 2018, the Bank of Russia's made a "regulatory sandbox" project.

The aim of this project is to allow the companies to introduce new financial services and instruments without risk of violating the existing laws.

Types of Tokens

Utility tokens

CAT(Custom Application Token)/appcoin/apptoken/Native Tokens

The inner tokens of the protocol are the bloodstream of the entire network or applications on which it is based.

It gives the token owner a unique advantage in the use of the application or network. For example, the BNB token reduces the commission for Binance trading.

The BIP token also belongs to the Utility category. It can be used to make quick transfers, pay for goods and services, create custom coins, and delegate to leading nodes.

Most blockchain projects fall into this category. The number of different names is driven by marketing positioning or a desire not to fall under the "letter of the law".


Equity Token

Equity(capital/justice) token - the analog of shares, it gives their owner the right for a part of the profit and the possibility of partial participation in the company management. " It operates in the same way that a traditional stock company and falls under the regulatory system..." This position was made by the SEC on July 25, 2017, and it gave its official opinion on ICO, DAO tokens, and their legal status. Based on the results of this decision, the equity tokens fall under the laws for stock companies. All emitters are obliged to have a corresponding registration for the issue of tokens and registered capital.

In American law, there is a "Howey Test" that defines the legal status of any asset.

In general, the Equity token functions in the same way as a share, but it is recorded in the blockchain and traded on regulated crypto exchanges. One of the few companies working in this area is https://www.documo.com/investors/eto

Security Token

A security token is an investment blockchain product that does not give its owner rights for company profit and ways to participate in the company management.

Investors buy a security token for getting profit out of its sale as they expect that its value will be increased. The security token value basis of the corporate efficiency-related indicator.

Not every cryptocurrency is considered to be a security token. Most cryptocurrencies, such as BTC and ETH, do not fall under this classification. This is what investors call "assets", such as gold or silver. The rises and falls of the price not based on any business core or on the success of the company and the product, but on market movements - the demand and supply of the asset itself. The main difference of security token is that it does not give the investor a share of the profit and ways to participate in company management.

Examples of such tokens are Polymath, Harbor, tZERO.

Asset-backed tokens Debt tokens

Debt tokens are the liabilities of a company or an individual that are linked to actual goods or services. In this case, the guarantor of the token execution debt is the company that issued the token and provides the service or the product. The Asset-backed token becomes a digital copy of the asset or service that is represented in the physical world.

Actual example, the production company https://zrcoin.io/prod makes binding a token with the product "Synthetic zirconium dioxide".

Minter network tokens

Network activities such as sale, purchase, DPOS, token issue, are performed with the main BIP token. Therefore, the BIP token is a Native token.

Custom tokens issued inside the Minter network can belong to different categories. Everything depends on the company that issued the token, and the conditions that it provides to its users and investors.