EOS
$4.40 -14.67%
EOS · 4d

IRESPO — a scarce token in a sea of abundance – iRespo.com – check out our today article!

IRESPO — a scarce token in a sea of abundance

In this article I discuss iRespo approach to long term token price increase based on token scarcity and existing real-world product and compare it with a naive approach in which market feelings dominate the price.

Have you ever wondered why the price of Coca-Cola remained stable in your favorite vending machine all year long, while EOS Token varied 1–6–0.5–22–5 USD at the same time?

Even though the question may look silly, my point is that companies are able to stabilize the price of goods high even during the times of low demand. You cannot buy the jacket of Hugo Boss for a dollar even if the whole collection remained unsold. The fact is that some companies prefer to burn the unsold items than to sell them at a discount, and no matter what we think about those practices they are successful to keep their goods scarce.

In iRespo we share this approach. In crypto-space too many tokens are completely worthless, which is visible even more during bear market we have now.

Our intention is to have a long-term price increase of our token and the only question is how to achieve that.

No Airdrop and (almost) no bounty

First of all our project as the first on EOS decided to run an ICO and not an airdrop for its fundraising. At the time of announcing the decision it was quite controversial, as all the projects before decided to airdrop. However, with time more projects including the most renowned ones decided to do an ICO or at least combine the promised airdrop with some form of fundraising.

One of the reasons to not to airdrop is human psychology. You simply do not value something you get for free. Moreover, during bear market you are more eager to sell the free tokens, as they always represent your gain.

The same way we did not have extensive bounty programs. 200 first users got a total of 30,000 IRESPO tokens and additionally for our partnerships and bug bounty programs around 30,000 IRESPO tokens were spent.

Is there a life after the ICO?

The ICO token price is 0.15 USD and since we are running it during bear market even our project supporters are a bit scared to invest. What if the ICO is unsuccessful? Maybe to airdrop instead?

First of all our project within smart contract has an option to get your EOS back if we do not reach the minimum of 12 mln IRESPO sold during ICO. This will be available up to a week after ICO.

After the ICO all our supporters will get the ICO summary and our next steps so they have a chance to decide whether they want to stay with us or whether they value more their EOS tokens. Fair deal and fair play on our side.

On the other hand let’s be clear — we will never airdrop and the price of our token will never be cheaper on our page than is now during the ICO. If most of the tokens reman unsold we are not in a bad situation.

Even though we cannot influence the demand we can limit supply. This makes sense anyway, as our project is backed up by our services. Since we start to market our product in September at the beginning we will not have much demand from real users so the token supply can be smaller.

At the same time our application has a lot of room for scaling so the token will enable accessing more and more services expressed in USD. Our sell price will never be lower than during ICO. Let’s see the details.

Post-ICO pricing of unsold tokens

The tokens unsold during ICO will be part of our regular sale on our page.

The regular sale will be done according to the following algorithm:

The price will be increasing starting at 0.2 USD in day 1 and reaching around 2 USD in day 365 according to the following equation:

2. The initial supply in Day 1 will be of 5000 IRESPO tokens ~ 1000 USD.

a. If more than 90% tokens are sold in a daily sale, the next day the supply will be increased by 20%.

b. If the less than 90% of daily supply is sold, the supply will remain at previous level

3. The number of services available for a token will be growing according to the proposed pricing model. Assuming the prices for accessing our services expressed in USD remain unchanged, if in Day 1 to organize an event for 250 participants an organizer will need 200 tokens (40 USD) in Day 365 to organize and even for 250 participants an organizer will need only 20 tokens (but still 40 USD).

Summary

Even though the company has no control of market demand, it can influence the supply of the provided services. In case of iRespo our services are represented by our IRESPO token.

With application scaling and limiting token supply we can benefit our token purchasers and not to fall victim of free-token-for-everyone attitude that creates token abundance leading to severe token price drops. We believe that this new approach in crypto-space will be beneficial to the company and our token holders.

Go to medium.com
Recent news
EOS · trybe.one · 13h

EOS - First Hackathon Winners - IDPass

What Is The EOS Hackathon The EOS Hackathon series is a program founded and funded by Block One that not only incentives the creation of innovative dApps built on EOS but also get like-minded individu...
EOS · trybe.one · 16h

EDNA - Genetic Testing on the EOS blockchain

EDNA is a tokenized solution to human suffering. They are located out of Puerto Rico. It is an Eos based coin with a total supply of 1.3B max. There will be no inflation. Staked voting will have compe...
EOS · trybe.one · 19h

Platforms switching over to EOS

Another day with markets in the red. But there is no reason to discuss price in those lazy summer days, especiall knowing there are so many things building up in the background. As i've stumble over a...