Use-case - 2Tokens Utility Token (TWO)
The potential for tokenization to disrupt existing interactions is huge – offering both more efficient solutions to existing paradigms (e.g. crowdfunding, fractionalized ownership) as well as opening up whole new models for financing and collaboration beyond the currently dominant approaches. However, the general perception of tokens is that their creation and application is often hampered by rules and regulations. This might be the case for a few very innovative tokens, but for many others, current rules and regulation does suffice.
What is TWO?
The TWO token is a single-purpose digital voucher that gives a 10% discount on items in the 2Tokens webshop. By creating such a token, we show that it can be quite simple to create your own token.
The TWO business case*
The design, emission, and use of the TWO Token is part of phase two of the 2Tokens initiative, dubbed ‘Exploration’. The goal is to test our emerging framework by applying it in practice, simultaneously tackling a real-world opportunity: the funding needs of the 2Tokens Foundation and the community’s desire for further inclusion and experience in tokenization in the Netherlands. A secondary objective is to provide a seamless experience for token holders to transact the TWO Token, to experience that exchanging tokens does not have to be difficult.
The token will be a lightweight utility token with immediate practical applications. From a fiscal point of view, it will be a single-purpose voucher that has an expiry date. This means that the TWO token represents discounted store credit for all current 2Tokens products and is only valid until the end of 2020.
Products that can be bought with the TWO Token include conference tickets to the 2Tokens Summit 2020, the virtual expert sessions and the 2Tokens Masterclasses. The token can be acquired at a rate of €1:1 TWO and can be spent at a fixed rate in the 2Tokens Store. As a result, the TWO can only be transacted between the 2Tokens Foundation, i.e. the issuer (sells tokens and accepts them as voucher credit for products) and the purchasers, i.e. the owners (buys tokens, redeems them for products). There will be no exchange listing, there is no formal use for a peer-to-peer economy.
The reason for these limitations is that the launch of the TWO Token is an experiment to learn lessons from how to issue a token and how a community would respond. We keep the first steps simple, testing community appetite as well as our nascent frameworks such as the framework from the International Token Standards Association (ITSA). We will use this framework to determine the characteristics of the TWO Token, which we then can apply to the 2Tokens Regulatory Roadmap as developed in the round table sessions.
*The 2Tokens Foundation Utility Token emission 'TWO' was intended at the time to provide a fun incentivized experience for community users to handle tokens, and get rewarded primarily via discounted Summit tickets. Due to the pandemic the Summit has shifted dates many times to finally settle on a free and digital format. This pivot, whilst great for our wider interaction, has removed much of the reasoning behind the issuance of the TWO token. Because of these developments we have decided to also pivot the TWO token, making it a partner-only product that is awarded alongside the formal partnership. We are investigating how to best bring an interesting education only alternative to the wider community, perhaps a TWO utility token gamified test net, to still increase the number of people comfortable handling these novel digital assets. For now there are no plans to sell or issue the TWO.
The TWO Token will be a utility token available at the price of €1 : 1TWO. The primary reason for the development of the token is to sell products and raise funds for the 2Token Foundation, a not-for-profit entity.
TWO Tokens can be bought during a public token sale. There will be no discount for early buyers, however, the tokens offer discounted access to the 2Tokens product suite. The token sale will start at the end of the webinar where the TWO Token will be presented and launched. Interested parties can purchase the tokens as long as there are products for sale in the 2Tokens webshop.
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