Tokenizer Explained.
Tokenize
Picture this: There’s a hot stock right now that everyone is buying, and this thing is flying high in price. You would like nothing more than to pick up some units of this stock to get some of the benefits of the pump. You quickly log in to your native stock trading app to find out something: The stock isn’t available in your country.
This is the case a lot of times, but not just with stocks. Even cryptocurrencies aren’t exempt from barriers to entry. For instance, when the Ethereum chain had fees of up to 500 gwei per transaction and one transaction cost over $100 regardless of the amount you were sending, people still had to make transactions and pay those high fees.
This is where the Tokenizer comes in.
For case 1, all you have to do is “peg” that stock to the blockchain with the Tokenizer. This simply means creating a blockchain based token linked to that stock. It is basically a mirror of that stock on the blockchain, and every change in price on the stock is reflected in real time on the token you just created. This way, you have the stock in your hand, and can enjoy all its benefits without even being in the country where the stock is present.
To tokenize, you need a few things:
- Some $TKN
- A link to the asset itself (could be a wikipedia page or any info related to the asset)
Once you have these, head on to the Tokenizer platform and connect your wallet.
Now you have to choose a lock date for your $TKN. It’s important that you lock your $TKN because that acts as collateral for your created asset. Once you lock your collateral for a certain period, our platform begins recording price data on the asset you pegged to and varies your $TKN collateral accordingly. If the asset price goes up, more $TKN is added based on how much the stock goes up, and how much you added. if the asset price goes down, $TKN is burnt based on those same factors. All this happens on a ledger in real time, and changes in your collateral value only reflect in your actual balance when you go to withdraw your collateral.
For case 2, the process is the same, but you are essentially creating the same token on a different blockchain, without using token bridges. The process is exactly the same as in the first case.
Request Liquidity
Now that you have created a token, you can do either of two things:
- Keep the token in your wallet and reap its benefits
- Create a market on Tokenizer DEX and reap the token’s benefits + 0.5% of all LP fees earned on the pool forever.
We know whoever is reading this is super fun and likes passive income, so we’ll assume you’ll go with the second option.
To create a market, you need liquidity. To get liquidity, you go through governance.
By creating a proposal for liquidity on the governance platform, other community members can review your proposal and vote for or against it depending on how interesting your token is. If they do vote in your favour, you will be given liquidity in $TKN, up to $30,000 depending on the core committee’s decision. The market for the token will then automatically be created on Tokenizer DEX, ownership LP tokens for the pool burnt and liquidity locked forever. (anyone who adds liquidity to the pool will still be able to take it out, but the core liquidity will be locked forever)
The address that won the governance vote will have 0.5% of the monthly earnings of the pool sent to their wallet automatically. Nothing else is required from them.
Get rewarded
Tokenizer allows its users to get rewarded by simply holding their tokens. Every quarter, $TKN is airdropped from the governance wallet to everyone holding $TKN based on our platform’s earnings for that quarter.
$TKN
All the above named features are only possible through $TKN, the utility token of the Tokenizer platform.
Efficiency, security, scalability and true decentralization are features that are of essence to any blockchain related project. To this end, the $TKN utility token will be built on the BSC blockchain, which satisfies all of the above named criteria. However, in the spirit of true decentralization, $TKN will also be available on all major blockchains to give the end user a plethora of choices.
$TKN is a deflationary, fully decentralized utility token that is required to perform any actions on the Tokenizer platform. It is the fuel that runs the tokenizer interface and apps.
$TKN has a total supply capped at 100,000 tokens, of which no more can ever be created. There is a 2% tax charged on every transaction involving $TKN. This 2% tax is wholly sent to the public Tokenizer Governance wallet, where it is reserved for provision of liquidity to governance approvals.
$TKN is burnt every time a token is created on the Tokenizer platform. Before a token can be created on the platform, an amount of $TKN equal to the price of the asset being pegged must be burnt by the Tokenizer engine.
For example, say Bob wants to peg shares of a company worth $20 each. He would have to burn $20 worth of $TKN for each share he wants to tokenize. This process ensures that:
- Infinite tokens cannot be created
- The supply of $TKN constantly decreases, maintaining the deflationary aspect.
- The created tokens have market value, and can be resold to someone else who wants them.
In the event that a user wants to mint a brand new token, the user sets the initial price by burning the exact amount he/she wants the token to cost in $TKN. This gives $TKN value as its supply decreases while demand increases as more and more users find out about the protocol.
$TKN will also support staking on any blockchains that support Proof of Stake. Staking $TKN will help reduce the circulating supply and therefore dynamically increase value. In return, the users who stake will be rewarded with $TKN based on the amount they stake and the current APY at the time of staking.
$TKN has been audited by Hacken, and you can check out the report here.
What about that 2% fee?
The 2% fee is sent to the Tokenizer public governance wallet. This wallet can be readily audited at any time by anyone by simply looking at a blockchain explorer.
The fee is accumulated on every transaction and will be used for:
- Holder airdrops
- Liquidity provision for governance proposals
- Funding internal projects on the Tokenizer without needing a new token sale every time.
Tokenizer DEX
The Tokenizer DEX is the main decentralized exchange of the tokenizer protocol, and is where the Tokenizer protocol will draw its initial liquidity from. The DEX will also be built to accommodate all major blockchain networks.
Assets that are created or pegged on the Tokenizer platform can request liquidity through a governance vote. If they are granted liquidity, their tokens are listed on the Tokenizer Platform, and the keys to the platform are burnt.
The Tokenizer DEX will serve as a source of liquidity for the Tokenizer platform, as well as create more value around the $TKN token by utilizing it as a method for payment of fees. Payment of fees in $TKN on the Tokenizer DEX will reduce the amount of fees paid for the total swap.
Tokenizer Governance
Tokenizer was defined as a “fully decentralized, community controlled asset pegging and creation service”. The platform is decentralized through governance.
Governance power is given to anyone that owns $TKN and allows such people to create and vote on proposals that will shape the Tokenizer ecosystem.
Voting will take place with the aid of our voting contracts. Each proposal will be represented as a liquidity pool. Voters will be expected to deposit their $TKN tokens into the pool of their choice, with the pool having the highest amount of $TKN after the voting period ends being declared the winner, and the proposal represented by that pool is implemented. Each $TKN deposit counts as one vote. For instance, depositing 100 $TKN is equivalent to giving 100 votes. After the voting is completed, tokens can be withdrawn from the contracts.
How will $TKN be listed? Will there be a presale?
Tokenizer is going with a fair launch style, similar to cVAULT (CORE). This ensures two things:
- Everyone has a fair chance to get into $TKN at the same time.
- The price of $TKN keeps steadily goes up since $TKN needs to first be bought from the pool before it can be mined.
If you’re not familiar with cVAULT’s launch style, basically it allows you to obtain $TKN for free. All you have to do is
- Add liquidity to our liquidity pool. This pool will be locked, and proof will be available on Team.Finance.
- Stake the LP tokens on our platform.
By doing this, you are using your liquidity to mine $TKN, and you can stop at any time, withdraw your liquidity and have free $TKN tokens.
To provide initial liquidity, we will be hosting a small token sale on YSEC, a secure self-serve presale platform. This token sale will only be for liquidity purposes, not for funding the Tokenizer. 90% of all raised BNB will be added to the pool.
To reward the initial presale buyers, we will have bonuses available depending on how much BNB you spend. The details of this will be released later.
Our whitepaper is a lot more detailed. You can check it out here.
Thank you for reading!
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