Intellitoken Whitepaper v.1.1 - EN
Intellitoken Whitepaper - EN Version
An alternative to SMT and Steem Engine.
With the delay of the appearance of the SMT, several token development initiatives within the STEEM (or sidechain) blockchain have emerged and the best known of them is the Steem Engine, where dapps such as DrugWars, Partiko, ActiFit and PAL already have tokens developed on this platform. What's more, Steem Engine already has exciting features like POS and Proof-of-Brain.
Through these projects I want to introduce my: Intellitoken. It is based on the following concepts below:
- Without intermediate platforms, one code per token
- Easy implementation
- Easy development for third parties
This token is managed by a blockchain within STEEM's blockchain. She is so small and simple that I call affectionately "micro blockchain". This simplicity is due to the following aspects:
- No need for key pair per user. Only the STEEM user account is used;
- With this, there is no need to sign the block of "micro blockchain". The token has already signed the transaction in STEEM's blockchain;
- In the "micro blockchain" only the operations of the token are registered, where it is managed by the server that manages the token. For integrity a hash of the previous block is calculated for the new block.
Project Aries becomes Intellitoken
It is not yet a platform for developing complete smart contracts - you only define some information and require minimal programming knowledge.
Before you even create a token, you need to have the following information in mind:
- The name
- The total number of tokens to be made available (remembering that each unit is fractioned, as in bitcoin)
- The purpose of the token (the motivation to invest in your token)
- A specific site for your token. In it you can check the balance, make transactions and buy / sell the tokens
There is no point in having everything in mind and not having an ideal tool to apply to our ideas in practice. Paying 100 STEEM to the Steem Engine to have a token of your own is not a bad idea, the problem is they still hold the power of your token and when the project ends you will lose money. That's why I've developed a new alternative and it's called Intellitoken.
In the project, in order to have your own token you will need to have the following:
- The token name
- An independent STEEM account with ACTIVE KEY
- At least 100 SP (can be delegated)
- A little knowledge in programming (the minimum)
- A Linux server (can be a VPS with Ubuntu 16.10 up)
Just remember that ACTIVE KEY is non-transferable. It will only be used at the time of running the server that manages the token.
Now let's go to the token operation. It has the following characteristics:
- Ease of implementation
- Ease of development for third parties
- Automated buying and selling
The automated purchase and sale eliminates the possibility of fraud and manipulation caused by order shipments and buy / sell by third parties. The appreciation or devaluation of the currency is based on two factors: the scarcity of remaining available tokens and also the scarcity of the Account's Credits, to avoid congestion and also interfere with the operation of the STEEM network as a whole. The impossibility of fraud by this system is guaranteed by a specific calculation that can be calculated independent of the token.
All operations are registered in what I call "micro blockchain" itself, guaranteeing integrity and transparency for all. All transactions are recorded transparently so that investors have more confidence in investing in the token.
The pricing formula
I developed an interesting formula that calculates the token pricing. To have something in the market, it has to be scarce. This shortage is summarized in three points:
- Total tokens available (supply)
- Total tokens available for sale (value supply)
- Total resource credits from the STEEM token (value resource credits)
The value is in STEEM and it has a minimum value of 0.002 STEEM. This does not mean that the purchase value can be 0.002 STEEM, it may be higher. In this case it will depend on the amount of tokens made available. The lower the quantity, the higher the initial price.
The Value Supply (vs) is calculated according to the formula below:
Where "s" is the percentage of remaining tokens and "mb" is the minimum purchase value (0.002 STEEM). A rate is created on top of the number of tokens made available. The less available tokens in the supply, the higher the purchase value.
The purchase value is the result of Value Resource Credits ("vrc"), which also increases according to the amount of Resource Credits of the available STEEM account (in%). The lower the availability, the higher the sale value. The main reason for this is because as there is the limitation of using the STEEM account and we use it to record all the transactions in our internal blockchain it is necessary to increase the sale value of the token so that these transactions are properly controlled.
There is a way to increase the availability of RC by encouraging the community to delegate SP and to be rewarded by the token. I call that POD (Proof-of-Delegation).
As there is an increase in the value of the token as it decreases the availability of SP, there is the possibility of a flood in the account, forcing the decrease of SP availability and consequently, the sales value of the token will increase. This can facilitate certain system fraud and cause the token to break financially. Therefore, I developed this formula below for the sale value:
The sales value of the token is initially 50% lower than the purchase value. And this value tends to decrease as the RC becomes less available. Therefore, the less RC available, the higher the purchase value and the lower the sale value.
In short: always keep RC as close as 100% to get the best price for purchase and sale. And for this to be possible, delegate a little SP and also have some reward tokens.
It comes as an incentive to the community to contribute to the stabilization and dissemination of the token. For each block generated on the network, Intellitoken distributes a reward to all who delegate SP to the STEEM account that is used by the token. This amount is distributed proportionally to all delegators until all supply is done.
The principle is the same, only those who have stored tokens win. What differs from the rest are the following points:
- It is not the same as the Steem-Engine, where to do the staking has to do the process similar to the STEEM power-up. Just need to buy and save
- There is no maturation time
The default value for reward is based on the following calculation:
reward_min = 1
reward = reward_min * (token_supply_remaining_percent / 20)
In this case the reward is 5 divided tokens for the entire network. The reward is paid for each block where there is a purchase and sale transaction recorded on it.
This measure is to encourage users to buy more tokens and increase this by advertising their token on the platform. This also allows for premine on the part of the devs before launching their token.
Intellitoken contains an internal web server developed in Python where it does all the reading of the blockchain of the token. It includes:
- Calculation of token pricing
- Simulation of the token price
- Account balance
- Blockchain explorer
With minimal programming knowledge, you can change the values of the variables and have your token ready. With a more advanced knowledge, you can develop and devise powerful resources that can make the token more interesting for all your investors.
Cost to get Intellitoken?
None. It will be open-source.
The cost will be supporting me by voting as a witness and spreading this work so that I can continue with it and contribute to a stronger STEEM community.
Help me to reach the top 100 worldwide.