EMAC Token Economy And Its Core Value

5 min readApr 14, 2018

We have been receiving multiple questions by the community on how the EMAC Economy will affect the market place, as its core value. This post is dedicated to describing the EMAC Token economy and the factors affecting it.

Here are some examples of questions that were brought in this regard:

“How is the EMAC Token going to perform over time?”
“Will the EMAC value increase on the aftermarket?”
“What is the core value of the EMAC?”
“Why should I buy the EMAC token?“
“How do you (the company) profit if you are not charging any commissions on purchases?”
“When are you going to integrate with an exchange after the tokensale?”

To start off, although you are most probably aware, the price of any token in the cryptocurrency world is the result of the difference of supply and demand for that token on the market.

In other words, there are two sides. One one side we have people who want to buy it, and people who want to sell it on the other. If these two sides have equal interest in buying as in selling, then equilibrium is reached. This results in a unchanged token price. However, if one side is dominant over the other, then there is dis-balance. For example, if more people want to sell the token, than buy it, the result is that the price will go down. Vice versa, if there is more demand (more people want to buy) than supply, then naturally the price will go up.

That being said, we want to emphasize the characteristics of the EMAC token economy. They are important in understanding how it favors demand over supply.

1. Token Generation Key Metrics

One of the most important characteristics of a token are its generation metrics and limitations:

Total Supply / Hard Cap — . EMACs total supply equals to 454mln Tokens. Of those, 363mln will be released and available to the public during our ICO phase. Having this number allows for more people to enter and be part of the new, blockchain-powered marketplace. This is important, as giving as much people access to our platform is one of our core goals. This will allow for a healthy and community driven marketplace, with a lot of diversity and demand. The remaining 91mln (20%) will be held for the future development of the project, in terms of campaigns, partnerships, business etc.
Unsold Tokens Management — In case the EMAC hardcap of 32,000 ETH is not reached, all unsold tokens will be destroyed. This ensures that in this scenario, the circulating Tokens on the market will not be greater than the initial demand. Often companies keep unsild tokens for team and staff members, which is an obvious red flag.
Smart contract and Purchase process — Some companies have the possibility to generate tokens with a push of a button. In our case, EMAC can only be generated as a result of incoming ETH. Also, it shall only be generated during our pre-sale and main-sale period. This is an extremely important factor as it defines the resistance/tolerance of the token to panic sellouts and price decline in general. This is defined in our smart contract, which is available at https://github.com/eMarketChain/EMAC .

2. EMAC Core Value

Sound Business concept — We have a very clear concept, goal and value proposition — to provide people with a marketplace, in which they can purchase goods at up to 15% cheaper prices. This has been an existing problem since the beginning of ecommerce, and has been so established, that it is now taken as a given. We are focused on changing this status quo.
Straightforward plan of action — We have a roadmap available on our website, with specific milestones in the coming quarters. The first big step is launching the Alpha version of our marketplace in Q3 of 2018.
Dependency on external companies — We don’t, in any way, depend on external companies for the development of eMarketChain. However, we understand people often trust known organizations and brands. As such, we are focused on creating the right partnerships to bring the best companies in our marketplace. In that sense, eMarketChain is both a C2C (Consumer to consumer), as well as B2C (Business to consumer) environment.
Team credibility & experience — Our team is very experienced, passionate and driven to change the current establishment of online commerce.
Market potential — Ecommerce in 2017 had more than 10% of total global retail sales worldwide. In other words, in 2017 ,retail ecommerce sales worldwide amounted to a whopping 2.29 trillion USD. Forecasts predictthat the number will rise up to 15.5% by 2021. And that should not be surprising — buying goods online is extremely easy and convenient.

3. Differentiation from Competitors

eMarketChain is the first project focused on completely eliminating middleman fees from online shopping, effectively disrupting the established model. Instead, our goal is to provide a fair market environment, where people are paying solely for the value of the good(s) that are bought! That, on top of the fact that we are the first company adopting Blockchain technology, which by its nature is trustless, faster and more secure, for such commercial purposes, differentiates us from our competition.

4. Circulation of the EMAC Token

How the service pushes token circulation and what its implication is on supply and demand.

Purchases and their effect on the token — EMAC will be used in every purchase from the eMarketChain marketplace, regardless if it is done in fiat payment, or EMAC. In case the buyer chooses to use fiat for purchasing, our exchange algorithm will convert it into EMAC internally and send it to the smart contract. The EMAC Token will be then halted for a certain period, before being sent to the reseller/business. The duration of this halt depends on the account and rating of the reseller/business.
Liquidity — Since we plan to provide fiat payments for the end customers who wish to purchase goods via our marketplace, we have to integrate the EMAC Token with a liquidity aftermarket provider. This is why we are negotiating with a lot of different exchanges at the moment.

Conclusion

eMarketChain (EMAC) is a unique project that has the goal of disrupting the massive, continuously-growing industry of ecommerce, which covers more than 10% of global retail sales. It provides value for both customers, as well as sellers, in that both parties will benefit from the trustless and secure nature of blockchain, while at the same allowing for cheaper and faster acquisitions (buying) of goods.