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In one of our earlier posts on xDAC, we stated that the xDAC platform would make it possible for company owners to issue tokens. I think it's high time we really take a look at those tokens and the need for their creation. Before we go into the discussion proper, let us recall that tokens are the lifeline of blockchain projects. They are like pillard to blockchain in the sense that it is a means to generate revenues/capital to give projects a boost. In another lane, tokens on blockchain can broadly be grouped into utility and non-utility tokens depending on the purposes they fulfil. These being said, let us go straight to our main subject for today.
On the xDAC platform, there will be broadly two types of tokens namely, the xDAC tokens, and equity tokens.
XDAC TOKENS:
This is the standard token created by the xDAC platform. It is the staple currency of the xDAC ecosystem. xDAC tokens are utility tokens that will be used as a means of payment for goods and services on the xDAC ecosystem notwithstanding the fact companies on the platform might have their own self-generated tokens. In sum, main xDAC tokens would have wide acceptance on the xDAC platform.
EQUITY TOKENS:
These are the tokens that companies on the xDAC platform would be privileged to issue. Equity tokens are further subdivided in two: they can be VOTING TOKENS or they can be NON-VOTING TOKENS. These tokens, like every other tokens on blockchain, would be issued through smart contracts but on the EOS network. These tokens would be split between the owners or sold out at ICOs or other forms of token sale/distribution respectively to raise funds for the companies.
Now let's look at these two forms of equity tokens closely.
Non-voting Tokens
Non-voting tokens on xDAC play the same role as every normal token on blockchain. They enhance growth and development of xDAC companies and by extension, the ecosystem itself. These tokens can be issued and distributed to investors at ICOs or other public offering with the aim of raising funds to support company projects. Suffice to say it gives contributors the abilty to transact in and support xDAC companies.
Voting Tokens
As the name insinuates, voting tokens are the tokens that invest one with the special rights to cast votes during decision making. These tokens are actually stakes and voting rights on xDAC. In otherwords, the more voting tokens an individual holds, the more control/influence he/she has on xDAC companies and the platform by extension. Company owners would be able to cast votes on projects and proposals in accordance with the number of xDAC tokens that they control/hold. So individuals' voting rights are determined by their stakes in xDAC which are in turn determined by the amount of voting tokens in their possession.
Voting tokens will be used to incentivize voters involved in certain projects on the platform thus, distinguishing them from other token holders/investors on xDAC. Holders of voting tokens will have the privilege to contribute to (or have a say in) companies' decisions by casting their votes for important company proposals/decisions.For instance, an xDAC (company) can conduct vote to sell its existing tokens held by owners in order to raise capital for its projects, or to issue additional tokens. The voting as in this case would occur by assigning tasks to the token holders in their dashboards where they can conveniently cast their votes in favour of or against such proposals. As with every token, voting tokens are readily transferable from person to person which here insinuates transfer of voting rights.
Tokens on xDAC platform - both voting and non-voting would be erc23 compatible. This comes with many advantages among which are
- It provides liquidity to token holders, thus removing friction
- It enables xDACs to list their tokens easily as it does away with the technological barriers to exchange listings
- It fosters peer to peer trading
- It offers default support from decentralized exchanges.
Use Cases of The Tokens
xDAC tokens would be used on the xDAC platform for the exchange of values (exchage/payment of goods and services) between the xDAC foundation, xDAC (company) owners, their team members, and customers. Other use cases include;
- Dispute resolution
- Payment of team members
- Payment for services
- A means of incentivizng development
- Means of distributing profits on the platform to deserving team members and company owners, etc.
Being erc-23 compatible the tokens on xDAC platform would be distributed on the ethereum blockchain.
For more information on the xDAC project, visit their website at: https://www.xdac.co/
And read their whitepaper here: https://www.xdac.co/docs/xDAC-Whitepaper.pdf
You might also want to join their telegram chat group to stay up to date with developments. Go here: https://t.me/xdacgroup
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