Someone said out there in a DeFi group in which I participate, that he was not sure that humanity was prepared for what is to come in the next few years in terms of the tokenization of the economy.
And I think he’s right.
For the first time in history, each of us can truly own his/her money.
Digital money has existed for a long time. Banks made the home-banking system available to us, and other companies that function as means of payment also let us make digital payments with the smartphone. But if your money is in the bank or in another means of payment, you are never the owner of your money. They are. And be careful, this is also the case on centralized cryptocurrency platforms.
On the other hand, if your money is in a decentralized cryptocurrency platform, it is yours, and no one but you can guard it and use it. That is for me the true revolution. The word I like the most about the crypto-sphere is "permissionless", rather than censorship resistance and inflation resistance.
Tokenization comes hand in hand with decentralization.
Now, trying to find the coins and tokens that can mean a dramatic change in our world is a cyclopean task, given the number of tokens that are in existence in the crypto-sphere today.
Well, that's what interpreting tokenomics is all about.
Image of WorldSpectrum in Pixabay
As I am only interested in sharing with you the long term fundamentals of tokens that seem to me to have the potential to change things and our vision about the transmission of value, the analysis is very guided by intuition and by my previous experience in the business world. I am not interested in speculation or pricing but in long term vision.
I am particularly drawn to DAG technology, which I briefly described in Episode 2 of this blog.
The term Distributed Ledger Technology (DLT) doesn't just refer to blockchains. It also includes DAG technology. Both DAG and blockchain record transactions on a distributed ledger, but they do so in very different ways. DAG technology, unlike blockchain, has neither miners nor blocks. Users have to confirm their own transactions through a process that confirms previous transactions with new transactions.
And, furthermore, I have an obsession with decentralization, and in this sense, projects that explicitly try to get out of traditional centralization, known for generating information asymmetries that end up favoring a few and harming many, attract me per se.
With this in mind, let's move on to today's two tokens. VX and VET
Vite Labs is an engineering company located in Beijing, China, founded in 2018 and dedicated to the development of open source protocols and decentralized application solutions.
ViteX, launched in April 2019, is the first exchange platform based on smarts contracts with DAG technology. This allows fast and free transactions.
ViteX is a fully decentralized ecosystem. All orders are completed on the chain and the order book is stored on the chain, which makes full decentralization a reality. The system is open to the community, and anyone can list their own currency on the ViteX Exchange.
At present, many exchanges that call themselves decentralized are not really decentralized and are limited by the operation of their public network. Typically, transactions are done off-chain and the results are displayed on-chain.
Instead, ViteX is completely decentralized, and that makes it very attractive to me. The transaction matching engine works on the basis of smarts contracts that run on-chain. The combination of orders is completed on-chain. The order book is stored on-chain. The payment of exchange fees is implemented on-chain, consequently, the results are fully public, and the dividend rules cannot be altered.
The VITE ecosystem has three currencies:
VITE, which is the native currency of the public Vite chain. It is the fuel that allows transactions in the chain. Instead of the traditional "gas" that is used for this purpose in other public networks such as Ethereum, VITE is used to stake for computational resources, and can be held free of charge when the transaction is completed. It is listed on the main exchanges.
VCP, distributed free to recognize prominent members of the community. At present it is used to redeem it for merchandising and is not listed in any exchange.
VX, which is the one at hand, is the native currency of the ViteX platform. It is mined exclusively by the ViteX community and used to assign awards to the community. VX holders can receive daily dividends from a shared pool that aggregates all the transactions that take place in the system. As of June 2020, ViteX has distributed a total of 60 BTC in dividends to its VX holders.
How are the VXs obtained?
VX does not have a pre-sale. The only way to obtain VX is through mining. The total supply of VX is 29328807.8, which will be fully distributed in 8 years with zero inflation.
Image of skeeze in Pixabay
VX can be achieved in five ways:
1- Trading as Mining: by trading in BTC, ETH, VITE and USDT markets and receive VX rewards.
2- Staking as Mining: by staking VITE to help ViteX obtain higher level operational quota and receive VX rewards.
3- Listing as Mining: by becoming a ViteX operator and list trading pairs to collect user transactions fees and receive VX rewards.
4- Referring as Mining: by generating a referral code to invite friends to join the ViteX platform and receive VX rewards.
5- Market-making as Mining: by helping improve order book depth by placing buy and sell orders and receive VX rewards.
There are no transaction fees on the Vite network. But each transaction consumes “quotas”, which is the equivalent of “gas” on the Ethreum network. I refer to this below.
But, why launch VX if there were already other currencies on the network?
In the FAQ section of their site, Vite Labs explains that VX can be understood as “proof-of-equity” on the ViteX platform, which has its own incentive model to stimulate the use of trading. The value of VX is positively related to the volume of transactions, and does not affect the value of VITE. The value of VITE, and of the network in general, increases as more dApps are developed that run on it. VITE and VX are connected in many ways. If VITE is staked to obtain “quotas” on ViteX, VX may be received as dividends.
Stake VITE serves to accelerate transactions, receive rewards, vote in supernodes (SBP) and mine VX.
In Etherum, to speed up transactions, the user usually has to offer the miner a competitive gas fee. The higher the fee offered, the faster the transaction will be executed. This is a typical auction model, in which the processing capacity of the ecosystem and the pending transaction are balanced by the price of gas. The model works very well for Ethereum, however, it is not easy for a user to determine which price is competitive, but not over the top.
Vite network does not charge a transaction fee, but each transfer operation, deploying smart contract, call to smart contract, issuance of token, registration in SBP, retrieving mining rewards, voting or staking consume “quota”. Vite network implements a quota generation and consumption model so that the ecosystem works seamlessly.
To obtain a quota for their account, each user can calculate a PoW puzzle each time they send a transaction, or stake VITE coin, the latter being the option recommended by Vite Labs.
A complete overview of the project can be seen here in the White Paper.
Conclusion. It seems to me that the ViteX proposal can be a great advance to continue developing the pro-scalability technology of crypto ecosystems, given that mass adoption is imminent and will take place in the very near future. The combination of the use of DAG technology, full decentralization, mining variants and a quota system to pay for sending transactions based on the currency stake, can be a very innovative and promising set, and has a large component of uniqueness.
Here is a project of gigantic proportions, which tries to integrate technologies such as blockchain, AI, Big Data and IOT to stimulate the use of the crypto-sphere in companies of all sizes, trying to develop solutions that run on the blockchain and are integrated into an ecosystem of micropayments between devices, operators, companies and users.
The VeCHain project began operations in 2015, with headquarters in Shanghai, having today several offices around the world.
The VeCHain Thor platform is designed in such a way that it can provide solutions aimed at a large number of companies from different sectors of the economy, but with a specific design for each case, not a general application that companies must adapt, because this does not work in the practice.
The IOT has been defined as a network of “smart devices” that have sensor mechanisms that allow them to communicate with each other through the Internet without human interaction. In a short time, IOT will be an everyday thing. The International Data Corporation estimates that in 2020 there are already about 45 billion IOT devices connected.
Image of jeferrb in Pixabay
Blockchain technology is presented as a very functional tool to connect these smart device sensors, facilitating their interaction, recording, tracking and validating transactions, and identifying the ownership and security of the devices.
VeChain's vision is that IOT and Blockchain are twin technologies that have to work together.
Companies still do not understand what blockchain is for in their businesses, and the idea of VeCHain Thor is to show in each case how the new technology can work in each company, in order to make their work more efficient.
VeChain's vision is that most of the existing blockchain economic models work based on transaction fees calculated in the platform's native token. The more the blockchain is used, those tokens increase in value, then transaction fees increase, creating a vicious cycle that is not good for business.
VeCHain Thor is a platform that has a system of two tokens: VeCHain token (VET) and VeThor token (VTHO).
VET is programmable in the ecosystem, and allows transporting value in smart contracts.
VTHO is used to pay the costs of using the VeChain platform with dApps and smart contracts.
VTHO is generated by the stake of VET tokens.
In its White Paper, VeChain deduces that the biggest obstacle that exists for blockchain to become a reality in companies, is the absence of real and concrete use cases of technology. The goal is for VeChain Thor to become the spark that expands the mass adoption of blockchain in companies, showing that it is truly an extraordinary solution.
Just as we all expect the rapid mass adoption of cryptocurrencies in general, VeChain is rapidly expecting the mass adoption of blockchain technology. In this way, technology would put ownership of the data and its monetization in the hands of the people who generated that data.
An incredible ecosystem is thus generated, in which the VET token is used as smart money and as a generator of VTHO (fuel that serves to run applications on the VeCHain Thor bockchain), expecting an increase in its price as the interconnection of devices increases. It looks like a very promising future for the token. The participants in this ecosystem are businesses, application providers, smart contract providers, infrastructure service providers, the VeChain Foundation, and the VeChain community.
Included in the White Paper are several VeChain technology use cases, showing once again that VeChain technology can make a dramatic change in our lives. I cite as an example the case of BMW. VeChain, in conjunction with the German automaker, developed a digital passport for vehicles, called VerifyCar. Each car receives a VeChain ID in the blockchain, related to the IOT devices that are part of the car and that take measurements of its performance, which are automatically registered as “micropayments”, and that allow to demonstrate that none of the characteristics of the car was neither manipulated nor modified.
It is really interesting to read in the White Paper the use cases that are already in concrete operation, and not in the wishfull-thinking instance of “such a thing could be done”.
Conclusion. As the interconnection of IOT devices advances in our daily lives, it seems that having a good amount of VET or VTHO would not be a bad idea a priori. What's more, I think early adopters are going to see a huge payoff for having hodled some tokens. I don't see that there is going to be a reversal in the IOT process, and I believe instead that there will be numerous competitors participating in the interconnected environment. To understand these processes is to understand that the world is heading by leaps and bounds towards a new form of economy: tokenomics.
None of the things written in this post are financial advisoring and are not intended to replace personal research.
Thank you for reading!
You can follow my blog Tokenomics here
Publish0x is a gret idea. Consider signing up with my link
If you have any questions or comments, please feel free to leave them down below
You can also contact me at email@example.com
You can also follow me on