Tagged: How it Works, VTB Blockchain, vtbcommunity, vtbdex
January 2, 2022 at 16:09 #1345WebMasterKeymaster
How It Works
This section covers the VTBC behind-the-scenes mechanism and the details of its functions concretely, not only conceptually. To begin with, there are two tokens: one increases with time and use, while the other is a tradable token similar to an ERC20. The remainder of this section provides more information on these two tokens:
VTBC uses fundamental mathematics to increase its value according to usage and time. As previously mentioned, this increase offers stability and predictable growth that can be relied upon for wealth-generating financial projects, including savings, cash advances, insurance, and utilities. The user accepts VTBC (through VTBT) as payment for goods or services and others. In other words, VTBC users and holders receive a continuous value increase while holding or using the asset. The transaction-based increase is calculated on the actual VTBC liquidity vs. injected value in the system. For example, the resulting price increase will be slight if the value of the VTBC sales (from the sell order book) is much higher than that of the current transaction purchase value. Conversely, the correlated increase will be more significant if the current purchase value exceeds the total sell order book. This offset serves to balance the injected liquidity in the system and the hourly value increase. This time-based increase has been set as a minimum to ensure that the asset’s value increases based on the curve described below. If the transaction-based increase value is equal to or greater than the scheduled time-based increase, the latter’s growth will not be triggered. The value increases calculation will be further explained in subsequent sections.
VTBT is valued at par with the US dollar regarding VTBC. At this time, VTBT can only be converted into VTBC. Our team may add a full Ethereum-based ERC20; meanwhile, a substrate-based token with similar features to the ERC20 is used.
The distribution mechanism is unique in the industry. Most projects use the sale of the tokens in an ICO fashion. Even if funding projects is essential and ICOs typically provide funding for these projects, in some cases, they can be scams, whereby the project creators walk away with millions of dollars. Instead of asking for money upfront with an ICO, the Foundation has opted to operate by simply tying the project’s success to its community. Consequently, as money is injected into the system as ETH, the project can sell some of the pre-allocated VTBC to fund any ongoing development. At the same time, the initial VTBC buyers are rewarded through a continuous redistribution of ETHs and VTBCs. Eventually, ETH will stop being redistributed in this manner because the initial token reserve will be depleted, but while the supply lasts, VTBC holders will gain in multiple ways.
This value control algorithm provides users with a predictable price, thus improving their financial plans and, in the meantime, allowing the VTBC assets to perhaps the member’s economic standing.
You may consult our White Paper for a complete reference of this whole section at https://bit.ly/vtbwhitepaper
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