Designing a token economy
When designing the House Panda ICO and its forthcoming token economy, we were choosing between several possible scenarios.
A key requirement for a successful ICO is a token that is priced by market and fixed in quantity. However this is the opposite of being a stable store of value. Aiming to combine the benefits of both across our products we have opted for a dual-token economy.
The House Panda Token (HPT) will be issued to ICO participants following a successful crowdsale. Proceeds from the crowdsale will fund business expenses such as expanding the team count, buying Nvidia AI hardware (a single DGX-1 supercomputer costs $150,000 —and we expect to need at least 16 of those), setting up permanent offices in Europe and in Hong Kong, development of around 30 global real estate indices in year 1 of operation and launch of the Panda (PND) token.
What is wrong with RE indices as they are, you might ask? Well, live RE indices do not exist. The indices that exist (for example, 1) are published monthly at best, differ in methodology and leave much to be desired in transparency and conflicts of interest on behalf of their publishers. Global live RE indices would be a game-changer, allowing for instant comparison of global RE prices and market attractiveness even by non-professional investors. Moreover, such indices (regularly audited by a third party) would allow for token tie-up, allowing Panda (PND) token value to mirror market movements.
Panda tokens, once tied to a particular RE market (say, USA), would accrue positive or negative “interest” corresponding to market moves. The interest would be allocated automatically and token supply supervised by artificial intelligence (AI) and a board of independent economists. PND token supply would be flexible to meet demand but would never be greater. A similar supply-governance model has been adopted by Tether. The difference in our case is that PND tokens will be tied to live data and their supply would be governed not by full fiat coverage but by guaranteed convertability on third-party markets to HPT tokens and other cryptocurrencies such as ETH and BTC. PND tokens will be tied in value to, but not directly convertible, to US$ (something already pioneered by Stox). The price-stability of the token will enable to be used by third parties as well as House Panda’s future ventures such as Visa/MasterCard cashback programs, content payments, as a House Panda quant community currency, payment of House Panda user fees and as medium of exchange for third-party services, for example, as a gifting currency in the online content industry.
To summarize, in House Panda’s dual-token economy tokenholders will be able to choose either a market-priced coin or a stablecoin. The market-priced HPT token issued following ICO will be necessary to participate in the economy.