Many times we have reconsidered the token growth support concept and we could see the basis for a good economy is to be stable and easily scalable. The solutions we were looking at were fit to some extent so we reached a point at which the system of interaction between our platform and its participants could itself provide significant growth momentum.
As we have already announced, every project to join our platform will be required to pay KickCoins for our services. This is a self-explanatory way to increase the short-term quantity of demand, but the next phase, which is Token Burning, is an obvious tool to make the demand permanent: the tokens accepted by our platform as payment for any of the services or taken in fees we will describe below are going to be burnt without returning to the open market. Anyone can visualise the following with the numbers based on the statistics we can provide.
First, whenever a crowdsale campaign is launched it can accept KickCoins as support from the backers. The benefit for the latter is that pledging with KICK every backer is entitled to a significant discount of 10%, which makes it clearly advantageous to arm up with KickCoins. The campaign authors are free to do whatever they wish with the KickCoins collected, but the basic rule to increase the supply-demand ratio in this case is quite simple: 4% of the campaign’s collections are charged by the platform in fees and burnt, thus being forever excluded from the market turnover, therefore one small piece by another decreasing the overall existing volume. Even if the campaign authors prefer to sell off their KickCoin sum collected immediately, they will only have sold 96% of the tokens that had been initially acquired by backers, the other 4% will never return to the market.
Here is a simple chart to make it all obvious:
This means that within one campaign no one will probably recognize a change, but with a constantly increasing load we are experiencing already such clippings of 4% of each sum collected will grow into an avalanche of tokens disappearing from the total turnover.
In addition to that cycle of constantly diminishing volumes of KICK, there is also a set of fees that would be applied for every campaign working on the platform: we will charge separate fees for moderation provided by our and community experts. This fee will be applied to every created campaign in order to allow it for moderation. To pay it the author will have to obtain KickCoins from the open market turnover that will be burnt by the platform. In case when the campaign does not fulfill the platform requirements or doesn’t comply with the market rules our moderators decline such projects until all the issues are fixed. Our current model suggests that the authors will have to re-assign for moderation once over, paying the moderation fee again, thus decreasing the circulating supply of KICK with every attempt, but there might be some further changes to this provision in order to make the procedure most effective. That would become a good motivation for authors to provide complete and accurate data about their campaigns and to investigate the market in order to meet the community’s expectations.
Nevertheless, we sustain our right to reject a project once and for all in case of a severe violation or intended scam.
For a well balanced system it is necessary to have a clearly established table of services provided, and the purpose of those will be to make our platform have exceptional functionality to provide a secure marketplace that would benefit every side of participants: we are carefully analyzing all the data we obtain from the projects launched now to present it to our community so that they can examine and utilize it in their further project assessment. Our main purpose in this direction is to form a community that has the means necessary to investigate and study the market and make well-thought decisions about the projects.
At the same time, being rated by the community will also require some charge, also accepted exclusively in KICK. Moreover, extra options, such as having one’s project highlighted in the rating will cost some extra KICK. All the quantities of KICK collected for rating services will be burnt in the same manner.
The final stage of every ICO, its launch, will result in other expenses held by the authors. Once having passed the moderation and getting well-rated, the campaign will become a legitimate to start project: to launch the crowdsale itself the project author will have to pay the Launch Fee in KickCoins that will again be taken from the public circulation and automatically burnt.
Here we provide an uncomplicated scheme for everyone to see the flows of KickCoins taken out of the circulation:
Our current estimate shows the prices to keep a growing demand and to filter out scam projects shall be low enough to allow even smaller projects but high enough to prevent obviously fraudulent campaigns. Thus, to apply for moderation a campaign will pay $100 in KickCoins for every attempt regardless of the count. To launch the crowdsale when the campaign is complete it will cost $300 in KICK, but in case the authors prefer to use our smart-contract builders to deploy the crowdsale or the token smart-contract a charge of $100 in KICK will be applied for either case: in the future we see the use of our standardized smart-contract builders not an option of preference but a requirement of the platform to provide fair and transparent set of standards to the entire crowdsale market.
Also, not only the campaign creators but community enthusiasts will contribute some little effort to increase KickCoin demand: in order to have an account wallet verified to get extra voting weight or use particular options of the platform a participant will pay a small wallet verification fee in KICK. That sort of payment will be transformed in the voter’s weight and a portion of tokens will be burnt following the scheme described above.
All of the KickCoin flows presented in this article are dedicated to several objectives: filtering out and restricting scam from the platform, developing a well organized stage-by-stage campaign standard and having the community equipped with the tools to rate projects to create a healthy business marketplace. As we mentioned before, there is simple math of KickCoin volumes burnt in the system, that will add demand and thus set some stable growth for KICK price. We currently experience a load of approximately 1,500 projects pending, per month we expect at least 10 projects per month, and that number will continuously rise with the market standardisation; we are looking at probably over a thousand projects per month launched the moment the market establishes its guidelines worldwide and many more businesses tokenized when the regulation for such process is developed by world’s most influencing jurisdictions. In the early 2018 we expect over a hundred campaigns moderated every month, which by itself will make up the demand for about 1,000,000 KickCoins in moderation fees. According to our statistics, we expect roughly 20% of the moderated projects to be approved and apply for our community rating and later launched, at the current price rate giving demand for 300,000 KICKs more. The same rates would apply for all the campaigns following our guidelines in the creation and deployment of transparent smart-contracts, forming a demand for 2,000,000 KICKs burnt per month at a rate of 300 projects launched. These numbers are quite solid but what it necessary to keep in mind the more unification and spread we bring to the market the larger numbers of projects and business will prefer to follow the fully designed path, thus making the demand growth exponential.
Finally, the more tokens we have burnt and the higher the price of the token itself, the higher we stimulate the market demand for the token; therefore, the more stable we will make the ecosystem and the lower the fee would be necessary to keep everything running, taking us further to a fully operating decentralized marketplace.
By introducing the new KickCoin token burning flowchart concept we expect to achieve not only to add some value to the token by increasing the demand on the platform but also to decrease the volume of tokens in the free circulation. To exemplify, if there are now about 300,000,000 KickCoins circulating; with the full load of the platform that we expect to see in the nearest future, about 90 to 95 per cent of those would be directed to support campaigns and projects, while the rest will be used to pay the fees charged for on-platform services. Out of the first amount 4% will be consumed by the burning procedure and the fees will be burnt entirely. Thus, every round of the market flow, there will be millions of tokens taken out of the circulation, and for every next round there will be fewer left: out of the previous round’s amount of the market circulation there will only be up to 95% per cent left, so every ten million of tokens entering the platform will only return 9.5 million back to the exchanges; further, the remaining 9.5 million re-entering theplatform will the same way turn into 9.1 million, and so on, and so forth. Along with that, the more popular the platform becomes, the more backers and projects will need to use KICK: the amount of tokens this way will keep self-regulating in accordance with the price and demand, keeping the monetary value gradually growing.
We always prefer to make careful steps in developing elegant and stress-proof solutions for healthy KICKONOMY and we realize a basis for that also lies in precision and thorough analysis; there very likely will be upgrades and further releases. To have the most advanced data please follow our next updates in Telegram(eng), Twitter(eng), Facebook(eng), Facebook group(eng)