KickCoin: how is it backed?
How and what is KickCoin cryptocurrency backed with?
A key question asked to every company that goes for ICO: “what is your token backed with, why and who will buy it?”. We take this matter in a comprehensive and diverse way. Yes, our token KickCoin (KC) will be issued every time any campaign successfully completes fundraising on our platform. As a result, issued coins are always backed with backers’ real money as well as with the working hours of projects authors. However, this is only what’s on the surface. KC has four fundamental reasons that are independently increase its value.
- Using KickCoins on the platform
KickCoin is a legal tender variety for various services and opportunities provided by both the platform and the community or partner companies.
There are about 20 new drafts daily created on the platform. A year later that number will reach to several hundreds up to several thousands. Hundreds of companies will submit for moderation on various stages of completion. To filter this thread, platform moderation will be commercial and the payments in КС will be accepted. This will cause the authors will prepare their campaign better before submitting them to moderation. It also generates demand for exchanges, because they will need КС to bring his campaign for review. The same will occur with the launch of the campaign. In order to launch it a thorough examination will be required and payment to moderators will be accepted in КС. In addition, many campaigns will have their tokens created in the token constructor KICKICO. Smart-contract and token deployment is not free in accordance with the Ethereum blockchain concept. Payment for this action will be processed by the platform, which will charge the authors a fee in КС based on stock prices.
In addition, community market service will be implemented on the platform. In fact, this is an automated “bounty” system oftenly used in ICO campaigns. The author assigns a value and the work needed, performed by community members that are rewarded afterwards. This is performed automatically on the KICKICO platform and will look as the services exchange: on the one hand, the authors indicate what they want and how much they are willing to pay for that. On the other, community members inform what they can do and the cost for their services. It can be anything: translations, making pictures or videos, legal services, audit, music, text creation, writing a Whitepaper and so on. All transactions will be made in КС exclusively. As a result, we will form a constant КС turnover on the platform in a large flow of campaigns using services market only.
KickCoins will be used in community voting (a way of supporting): for campaigns placed on the platform; for delegates (that will be described below); for advisors, which will be the community members for campaigns; for moderators and much more. Paying a small nominal fee in KC, we achieve multiple objectives: firstly, voting will be available for those who consider this important; secondly, we reduce the chances for cheating during voting, as all КС threads can be traced in blockchain. Connecting the КС traffic and voters profiles reveals fake accounts that aim to increase votes with higher chances; thirdly, of course, this will increase the turnover of КС on the platform and and their liquidity at the same time.
Based on КС a gamification will be implemented on the platform — gifts, badges, avatars highlighting and so on. More details about КС usage on the platform is described in this article.
2. KickCoins acceptance in successful campaigns and by third-party businesses
Companies that complete fundraising on the platform and who will claim to become a part of the KICKONOMY ecosystem before raising, commit themselves to accept КС and provide unique products in exchange, goods or discounts that cannot be obtained using any other way. But some third-party, already running businesses will integrate into the ecosystem hosting an acceptation of КС as recently announced by RBK Games platform.
Both parties that accept КС will receive various advantages. First of all — free traffic of paying customers. КС acceptation gives the possibility of additional PR as a wonderful newsbreak for the community, which previously might have never heard about this business. КС received from the users can be used for payments to partners conveniently and quickly or establishing foundations for awards. This opens up the possibility of offering an exclusive product for КС or organize surplus sales with big discounts during special events and so on.
For more details about why businesses should accept KickCoins, please follow this article.
3. Integration with Bancor Protocol
Bancor Protocol is a way to turn any token into a “smart token”, which automatically and without any further actions from the author will be traded or exchanged for any other smart token. Sales or exchange takes place using the Bancor Network and can be processed both inside the Bancor platform, both outside. Thanks to token “smartenization” that immediately makes it traded. This is important for small companies and projects that will never be placed on major exchanges. Considering that dozens or thousand of token types will appear in near future that works for all who will create his own token.
How it works. For example, the author raised $150 thousand (or roughly 500 ETH at the current exchange rate) and his backers got his tokens, for which they will receive something when the project will appear. However, development can take a year or two. It is unlikely that all the backers of this campaign would agree to wait for two years. Most of the investors in ICO campaign invest to quickly double or triple their investments, but that doesn’t work in small projects crowdfunding. Accordingly, the purchase of such tokens will have no interest for them.
However, thanks to the Bancor Protocol that can help an author to turn his token into the “smart token” and back it with the reserve of funds collected that instantly makes it liquid. The percentage of reserve selected by author is called Constant Reserve Ratio (CRR). Suppose the author chose to place 50 ETN in CRR, and then, collecting 500 ETH, the reserve will be 10%. The size of the CRR affects token liquidity: the more is reserve the higher is liquidity, though even one percent provides an opportunity for a free token exchange in Bancor network.
Any other token of ERC-20 standard can be a reserve currency. For projects that run on the KICKICO platform, reserve will be formed from KickCoins (KC) and Bancor Network Tokens (BNT) only in the proportion of 50% to 50%. Projects can choose the size of the reserve, we recommend 10%.
KickCoin itself is also a smart token, backing 5% CRR of the funds collected in the course of ICO tools. BNT will become a reserve token for KC, since it is the main Network Token for Bancor network, thus providing maximum liquidity inside the network. Using КС as a reserve token currency of platform turns КС into Network Token and will raise the rate of КС in a Bancor netwoek: every time, making reserve, token creators will automatically “buy in” КС through the Bancor Network. In other words, every campaign, that completes fundraising successfully on the KICKICO platform and that instantly wishes to get an opportunity to trade without being placed on exchanges will automatically buy КС in order to create a reserve and become a smart token. These actions, in turn, increase the value of КС. Rate growth in one place, in this case, Bancor Network, will improve the rate on other exchanges: arbitral traders will redeem КС cheaper on stock exchanges and sell with higher prices in Bancor network, thus pulling the rate and demand of КС at all other markets.
Thanks to integration with Bancor Protocol even authors of small projects, that raise funds on KICKICO platform, will be able to produce liquid tokens. Backers of these campaigns will be able to buy, sell and exchange their tokens at any time, and the creation of reserves will boost the growth of the value of Network Tokens which will be KickCoins.
4. KICKONOMY Foundation
And last, but perhaps most important. Thanks to the help of our advisors Roel Wolfert (Bancor, cryptocurrency advisor), Scott Morris (CEO and founder of Ithacash) and Edgar Kampers (Qoin, Chief Currency Officer), we developed the concept of KICKONOMY Foundation. Foundation, that will grow with KICKICO platform, backing and supporting KC. The more successful platform fundraising campaigns will be, the stronger will be the support.
As indicated in our (Whitepaper), the KICKICO platform will charge a fee from campaigns completed successfully in two ways: 4% in ETH and 4% in own campaign tokens issued. Every time some project successfully attracts funds on our platform, 4% of their tokens go to the KICKONOMY Foundation. Over time thousands of different tokens will appear in the foundation basket, some of them will certainly receive a thousand percent growth. As the foundation directly backs КС, every KickCoin owner will become the holder of this part of the Fund (in accordance with the proportion of the КС share), with the option to withdraw at any time exchanging КС for tokens that are in the foundation in accordance with exchangeable amount of КС and its share of the total КС capitalization. At this stage, KICKONOMY Foundation is a Reserve Fund and is operated by KICKICO company. Thus, the establishment of the foundation will create an index that reflects the structure of the foundation portfolio. Based on the market capitalization of the portfolio currency, together with the growing number of campaigns on the platform, it will rise constantly and organically, and the value of KickCoin backed by it will increase.
The next step would be the making the foundation a separate legal entity and the introduction of a decentralized management of the foundation. The management will be executed by delegates — community representatives, chosen by the community through an annual vote. Delegates will manage the foundation, transferring illiquid, “non-skyrocket” tokens into a reserve fund, thus reinforcing the main foundation portfolio; buying liquid and prospective tokens and most importantly — buying KickCoins for the income received and burning them, forming the deflation of KickCoin token. The primary investment focus of the foundation management is governing decisions, ensuring maximum demand and liquidity of KС. The strategic objective of the foundation and the delegates is backing the value of KickCoin in the market and reducing volatility of its rate.
It should again be noted that at the first phase the foundation is the reserve and is a part of the platform. Making the Reserve Foundation a separate legal entity and transferring management to the delegates will occur after the registration in SEC and MAS is obtained, with the result that the token will change its status from virtual currency to securities.
Unlike most other companies going to ICO, we are creating not only a currency without any other intentions. We create the ecosystem, and КС is the tool in it, not an end in itself. Each of the above methods, in our opinion, will significantly affect the market value of КС. And the greater the distance, the more time will pass since the launch of the platform, the greater will be the effect of each of them. All together they create a powerful synergy that will pull KickCoin on the top level of cryptocurrencies, with not only a speculative value, but with a universal application. If you look at the number of crowdfunding campaigns that raise funds successfully and implement their product, then according to our calculations and analysis of the market, they appear in several hundreds a month. For several years we are planning to form market of thousands of businesses with KickCoin acceptation, then we expect a snowball effect: unknown companies independently will enter into KICKONOMY ecosystem. That is why we believe in great and inescapable future that awaits our KickCoin.
All the questions and comments are very welcome in our Telegram Chat: https://t.me/kickico.