Economics, Governance, Monetary Policy and More..

With the arrival of all these new tokens in the cryptocurrency world, one of the most important aspects is the token function. There has been lots of talk about the differences between the utility token and the security token. A utility token represents access to a company’s product and service, but with properties of an investment. On the other hand, a security token is precisely derived based on the exogenous value as a tradable asset. For all intents and purposes, the Abelian token can be classified as a security.

Now since that is out of the way lets describe what the Abelian economic utility is. Issued as a security token, the Abelian token can be used to pay for various mining fees. In addition, they can also be used for transaction fees. Essentially, any fees associated with the Abelian platform can absorb the token. The incentives, however, are to be continually using the Abelian tokens which will lead users to receive discounts on the platforms provided services. To maintain a steady balance in terms of token supply, tokens spent on the Abelian platform will be burned up to a predetermined limit.

The Abelian token also has a governance system. All token holders will be able to participate in network voting and referendum in order to determine the future direction of network monetary policy and governance. This includes the ability to vote for or against network governance issues and the ability to vote for or against monetary policy. Users will also have the recourse to call a referendum based on sufficient token holdings and present governance or monetary policy proposals to the network. With that initialized, the ability to elect future monetary board members is also paramount.

Now that we understand what the token utility is, we must further elaborate on the monetary policy. All Abelian tokens will be determined by a Monetary Policy Board and indirectly by Abelian holders who are eligible to vote for Monetary Board Members and participate in various referendums. This allows token holders to have a fair say on how the token economics of the platform will adapt and evolve. This is a responsible, and democratic process that is congruent to other functional social structures in blockchain. To start, a board of five to nine members will be appointed by Abelian Technologies, and then with every successive year after, token holders will be able to vote for members via a governance module on the platform.

Similar to other gamification token models, Abelian’s monetary policy has two main objectives. First is to reward early adopters and promoters of the network through an appreciating token. This outlines the initial incentives for miners and traders to switch to Abelian’s suite of services. The appreciation is based on the underlying growing market for both private and commercial cryptocurrency mining operations. Not only will Abelian’s serviceable market increase, so will volume which directly relates to higher token velocity. The second monetary goal is to ensure that there is proper liquidity of the Abelian tokens on the platform exchange and the public exchange. The combinations of these foundational objectives will ensure that the Abelian platform has stability — another incentive for interested parties to participate.

Since the Abelian token is to be issued as a security, the ability to construct proper economic utility and governance rights is vital to the future success of that technology. The token can be used to offset fees and enable discounts and rewards. Tokens spent on the platform will, up to a predetermined limit, be burned. All token holders will have the ability to partake in network voting which includes governance decisions and future monetary decisions. Users will also have a resource to call a referendum and elect monetary policy board members. With a monetary policy which is goal-based, Abelian has created an incentive program that will broaden overall exposure in both the mining and trading sectors. This outlines a high potential product that will be easily accessible to the general crypto scene while still providing functional solutions to manyissues facing miners and traders.

We now know what initiatives Abelian Technologies is seeking out. We understand the technology, the mandate, the token economics and the monetary policy. In the next article, we will get to hear from the COO of Abelian: John Cooper.

Take a look at our new website: https://abelian.tech