Sikoba Tokens
Sikoba tokens (SKO) are utility tokens that will be used to pay transaction fees on the Sikoba Network
Sikoba tokens (SKO) are utility tokens that will be used to pay transaction fees on the Sikoba Network
The planned token allocation is:
- 40% token sale
- 10% marketing
- 10% Sikoba Foundation (which will be created later)
- 40% Sikoba Ltd (including team/advisors)
As of now (early July 2020), there are a total of 1.775 million tokens outstanding, counting the SKO1 tokens that have not yet been burned and new SKO tokens. Of these, a bit less than 710k (or approximately 40%) have been sold, 425k (24%) were used for marketing and issued in lieu of payment and 178k (10%) are earmarked for the future Sikoba Foundation. Only 462k (26%) tokens are held by Sikoba Ltd.
Future token sales will, however, be made in accordance with the 40% - 10% - 10% - 40% token allocation plan.
Sikoba tokens (“SKO”) will represent an electronic form of value that will be used to indirectly pay for commissions on the Sikoba network. There will actually be two types of tokens: SKO and SKS.
SKO is the main Sikoba network token, and this is the token being sold to fund network development. The price of SKO will eventually fluctuate based on supply and demand. Currently, there is no active market for this token, and we only have a record of token sales at (so far) steadily increasing prices. Once the mainnet is launched, a market for SKO tokens will be organized and the SKO price should be influenced by the actual growth of the Sikoba network as measured, for example, by transaction volume.
SKS is the internal Sikoba Gas token. All transaction fees on the SikobaPay network will be expressed in SKS. At the launch of mainnet, the price of SKS will be fixed against fiat at a level that is expected to make the system profitable for blockchain node operators—this is essential for the stability and security of the network. The goal is for SKS to track cloud computing and storage costs. This will make transaction costs stable and predictable over the long term, thus completely avoiding the large variations in transaction costs observed on blockchains such as Bitcoin or Ethereum.
SKS can be purchased using SKO using an internal market-maker. It will also be possible to exchange SKS back into SKO, but this will be subject to a conversion penalty.
To summarise: SKO are tokens whose value will fluctuate, while SKS tokens have a stable value. A user holding SKO will not be sure how many transactions she will be able to make in the future but may hope to see a price appreciation. A user holding SKS cannot hope for a price appreciation but will know exactly how many transactions she will be able to make in the future.
The demand for SKO tokens will be driven by users who wish to transact on the Sikoba network. Such users will have the opportunity to purchase SKO tokens for fiat money or cryptocurrency using various methods: on crypto exchanges, online using their credit card, from other Sikoba users or from local resellers, which are likely to include participating stores.
The Sikoba network will include a Special Purpose Vehicle (“SPV”) acting as an automated market-maker, fee collector and fee redistributor. By design, the SPV will tend to have a debit balance of SKS but will always tend to have a credit balance in SKO exceeding the value of its SKS debits.
With their SKO, users can purchase SKS from the SPV at a rate that reflects the market price of SKO (as the SKO price goes up/down, one SKO can be exchanged for more/less SKS). This increases the SPV’s credit balance in SKO, and increases its SKS debit balance.
When transacting, users are charged transaction fees expressed in SKS. These SKS are credited to the SPV, which reduces the SPV’s SKS debit balance.
With time, the SPV will tend to accumulate a net position in SKO. It will periodically distribute this to:
The Sikoba Federation members and the Sikoba Foundation will tend to sell SKO tokens for fiat to fund its operating costs, thus closing the circle.
Given a fixed supply of SKO tokens, this circular economy will naturally result in a tendency for the price of SKO to follow the number of transactions in the Sikoba network.
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