How to Create Your Own Coin: The Definitive Guide
Unlike other blockchain networks, Minter allows all participants to not only release their own crypto asset — coins — but also instantly exchange them for any other crypto asset inside the network.
The characteristics of each coin are determined by its creator based on the functional features of the product or project in which the coin will be involved. Users who issue their own coins are called coiners.
The new coin is used in projects implemented in the Minter network, as well as to raise funds for the project. On the Minter network, this procedure is called Perpetual Coin Offering, or PCO. It differs from ICO in that the number of coins is not limited to the initial issue, which allows users to balance the price of a coin.
The coin can play any role: loyalty points, in-game credits, community money, voting, awards.
To create a coin in the Minter network, you must:
- Determine the level of the Constant Reserve Ratio, or CRR. The CRR reflects the amount of reserves of BIP tokens that support the new coin. The higher the CRR, the greater the reserves, hence the lower price volatility, and vice versa. The CRR value ranges from 10% to 100%.
- Determine the number of coins for the initial supply. The price of new coins will depend on it.
- Set the amount of reserves in BIP tokens. This amount will be deducted from the creator’s wallet and set as the initial reserve of the coin.
For example, let’s create a coin called NewsCoin in the amount of 2,500 units. Set CRR at 40%, and the reserve at 100 BIP.
Each coin in the Minter system has the following properties:
- Absence of Limits
Consider these characteristics in more detail on the example of the NewsCoin.
The creators pay for their coins.
The creator paid 100 BIP for issuing 2,500 units of NewsCoin. The average price for 1 NewsCoin is 0.04 BIP. Due to the CRR value of 40% and the demand for a coin, its price increased to 0.1 BIP.
Due to the fact that the CRR is less than 100, that is, the coin is not fully provided with reserves, the price of each new NewsCoin will be slightly higher than that of the previous one.
The coin creator can determine in advance the value of the NewsCoin coin for the next issuance.
Each participant can see what the price of the coin will be at any volume of issuance.
Price changes are easy to calculate. The rise in price or its decline indicate a change in the level of demand or supply.
Example. After raising 12,500 NewsCoin, the sale of another 2,500 coins will yield the creator 2,390.17 BIP.
With the simultaneous sale of 2,500 coins, the creator will receive only part of the reserves. The system will still have 10,000 coins, as well as reserves at the level of 3,200 coins, and the price of 1 NewsCoin will be 0.8 BIP.
Example. If the project in addition to 10,000 NewsCoin attracts another 10,000 coins, then the price of 1 coin will rise to 2.7 BIP, and the amount of raised funds — to 6,198.07 BIP. This is 62 times higher than the original price of the coin, and 2.6 times higher than the lower level of raised funds.
All issued coins can be instantly exchanged for BIP and any other coin.
Liquidity is guaranteed by reserves, the ratio of which can be set at from 10% to 100%.
The CRR value is an assessment of the creator’s confidence in the success of his project. The higher the ratio, the lower the price volatility.
Coins issued in our system will not need to be released into circulation on the exchange. They will be tradable with almost any cryptocurrency with the help of BIP tokens.
Absence of Limits
If a large investor wants to buy a large number of coins, they can do it with one instant transaction on the Minter network.
The creator can freely sell their coins without someone’s permission and use of an escrow wallet.
Any user can buy even a small portion of NewsCoin.
The main idea of the PCO is to continue issuing as long as there is a demand for a coin. The number of coins in circulation is determined by the elasticity of demand.
Creating a Coin in the Console
Minter user can create a coin through the Console.
Required fields when creating a coin:
- Full name of the coin, length up to 64 characters;
- “Symbol,” or the short name of a coin, is from 3 to 10 characters long. It is entered during the transaction. The length of the “symbol” affects the commission for issuing a coin:
3 characters — 1,000,000 BIP + standard transaction fee
4 characters — 100,000 BIP + standard transaction fee
5 characters — 10,000 BIP + standard transaction fee
6 characters — 1,000 BIP + standard transaction fee
7 characters — 100 BIP + standard transaction fee
8 characters — 10 BIP + standard transaction fee
9−10 characters — only the standard transaction fee;
3. Amount of issuance;
4. CRR value, a number from 10 to 100. Indicated as a percentage;
5. Initial reserve expressed in BIP tokens. It is deducted from the user’s wallet when a coin is issued;
6. BIP wallet to write off commission.
Mobile Game. Thanks to the Freemium model, users can enjoy any game for free, and the developer maintains a permanent source of income. Imagine that interested users can buy an in-game currency created in the blockchain before the game is released. Then its value will increase with the popularity of the game. In addition, users will be able to transfer their coin balance from one game to another.
Shopping Center. Shops and cafes located in the same retail space can stimulate purchases from each other. It is much more interesting for buyers to receive not only a discount on their next purchases but also to use bonuses in a nearby cafe. Security and the absence of errors in the blockchain allow coin holders to replenish their balance and spend points without fear of possible errors. At the same time, the commission for such payments will be much lower than that of banks.