Introducing Personal Token Economies
Humans produce cool stuff because they get something in return. But for a vast range of activities there is no market. The transaction costs of quantifying and pricing many of the informal exchanges we engage in are just too high.
Having a great conversation with you over lunch might be worth something to someone out there. But it’s not worth tokenizing and the trouble of figuring out the right price. Hence, there is no market for lunch dates with you.
You do not get to earn from great lunch dates so you do not produce and offer great lunch dates.
As your value as a person increases — you keep getting better at what you do— lunches with you will probably become more valuable in the future. But needless to say, there is no futures market for lunches with you. There is no way for individuals to sell services that they are expecting to create in the future. people to invest in an individual now and bet on her time, services or attention becoming more valuable. Convergent is changing this today.
Convergent allows anyone and anything to tokenize their future value streams. It makes it easy for you to launch your own personal crypto token and have it represent the value of whatever service you choose to offer to the global market. Here is how this works:
Bob launches the Bob Lunch Token (BLT) and offers a lunch date in exchange for payment of 1 BLT. Anyone can immediately buy and sell BLT from a smart contract. Depending on how many of Bob’s tokens get sold, the smart contract will automatically increase or decrease the price to find an equilibrium.
The smart contract is an automatic market maker using what’s known as a bonding curve: It mints new tokens whenever someone pays it the current price and it returns some of the earned money to whoever sends BLT back to it. Thus, BLT is continuously tradable and liquid without being listed on an exchange and even when only a handful of people care about Bob.
What is most exciting about this is that if someone believes that Bob’s lunches will become more valuable in the future, they can invest in the token now and sell it at a higher price later. Of course this does not only work for lunches. We leave it to your imagination to explore the space of possibilities it opens up. Bob only has to honour his commitment of providing a service for a certain amount of his personal token. The market will then find a price for that service, including not just its present but also its future expected value.
Today Convergent unveils the first live example of this new token paradigm. The Convergent Billboard is a bonding curve linked to an advertisement surface on our website. We commit to keeping this advertisement up for the entire lifetime of our project. You can place your ad on this billboard for the cost of 1 CBT. It will stay there until someone else comes along and pays us 1 CBT to replace it with their ad. If you believe that the Convergent website will attract a lot more attention in the future you can also buy the token and hodl. Also, the more tokens get minted, the bigger the advertisement space becomes, because we only cover the currently filled up area under the curve. The total supply of CBT is capped at 1000 CBT, after which no more buys will be possible. When a token is used to purchase the ad space it is removed from circulation forever. More detailed information can be found here.
The Convergent Team hopes that this first demonstration of the bonding curve technology will excite and inspire you. Head over to billboard.convergent.cx (and make sure Metamask is enabled) to experience the tokenized future.