Proposal for a Pass smart token


#1

If we want to provide continous liquidity to the Pass tokens, we can upgrade the ERC20 smart contract and add an automatic price-discovery based on a reserve in Eth in the smart contract. We could organize a new Pass tokens CO (Coin Offering) in order to have a sufficient initial reserve in Eth.

Each time a delivery business will buy tokens for the payment of deposits when taking parcels, it will automatically increase the token price. The same for a trader who wants to speculate. There will not be any liquidity issue because the seller will be the smart contract itself. The same in case of sale. See the Bancor protocol about smart tokens.


#3

The formula is : Price = (1/Ratio) * Reserve in Eth / Supply in Pass tokens

Imagine that the CO creates 3 000 000 Pass and funds a reserve of 3 000 Eth for an initial Price of 1 Pass = 0,001 Eth. From this, we deduct Ratio = 0,287 for an initial reserve of 3 000 Eth and a supply of 10 443 298 Pass (7 443 298 + 3 000 000).

If a delivery business or a trader buys tokens for 1 000 Eth, he will receive 899 711 Pass. The reserve will be 4 000 Eth, the supply 11 343 009 and the price after transaction 0.0012.

In case of sale of 500 000 Pass, the seller will receive 581 Eth. The reserve after transaction will be 3 419 Eth, the supply 10 843 009 and the price 0,0011.

Etc

The more delivery businesses are offering a Pass deposit insurance to users, the greater the demand for Pass tokens will be. So the price will rise depending on the customer adoption of deposit insurance and on speculation on this adoption, with a continuous liquidity and without exchange fee or counterparty risk.


#4

Great idea! Love it. I support this. I have also contributed to bancor.
In this case, please help me to understand, what happens then to original token holders?


#5

The Pass DAO smart contract is upgradable by voting. In case of upgrade of the Erc20 token and share smart contracts, tokens and shares are reissued (cloned). So original token holders will keep their shares and tokens.

Note: the token supply is today 7 443 298. I took into account in the calculation.


#6

Are there any news regarding this proposal?


#7

We checked with Bancor. Technically no problem.
We want to update the whitepaper for applications using the same technology and not specially the P2P delivery and the C2C market. For instance, rental of objects or facility management.
For the legal compliance, we are confident as far as Pass are tokens used for insurance coverage and don’t provide license fees.


#8

Our tokens will be used as an automatic insurance coverage. If the receiver of the parcel doesn’t receive it, the sender will have tokens which were hold as a deposit by the delivery smart contract when the carrier took the parcel.

Delivery businesses could also provide an automatic exchange rate coverage using a reserve ? For instance, the sender wants a coverage in USD. If the token price is higher when claiming, the delivery smart contract gives less and a part of tokens goes to the reserve. And if the token price has decreased, the smart contract takes from the reserve to reimburse the price to the sender.

In this way, tokens don’t exist for the sender and the delivery business can cover globally its exchange rate depending of the amount of tokens it holds.