The ELI — a true utility token
In my previous article, I mentioned the ELI crypto token. It will act as an integral part of the Eligma platform and we are developing it as a true utility token. What does that mean? Let us take a look.
Crypto tokens
A crypto token is defined as a representation of a particular asset or utility that usually resides on top of another blockchain. Crypto tokens can be classified in a number of different ways, but they are usually divided into two categories — equity tokens and utility tokens[1]. The difference between both can be defined by the Howey test.
Equity tokens represent ownership of an asset, such as debt or company stock, and utility tokens provide users with future access to a product or service. ELI tokens will be tradeable on different exchanges, but they will also serve as value holders in our unified loyalty program and as a payment method for some of Eligma’s advanced functions.
ELI token usage
As stated above, the ELI token will be one of Eligma’s main components. Our users will be able to add ELI tokens to their accounts by performing rewarded actions or by depositing ELI tokens, bought on an online exchange, and then use them in a multitude of ways, described below.
Loyalty program
In general, there will be three ways that ELI tokens will change hands — between users and merchants, between users and Eligma and with users carrying out actions that reward other users.
How will merchants be able to reward users?
They will be able to hand out cashback rewards when users purchase items, reward everyone who bought selected items from them by taking advantage of Eligma’s records regarding past purchases or reward every purchase of a certain product in a time period.
How will Eligma be able to reward users?
It will be able to award ELI tokens for registering on the platform, purchases made through the platform, manually adding items to the inventory, uploading receipts through the Eligma’s mobile app or platform, adding detailed profile information, and referring new users and online stores.
What user actions will reward other users?
Users will be able to create wishlists and social media posts through Eligma. When those wishlists or posts result in direct sales, users who created them receive ELI tokens.
Using platform features
The majority of Eligma’s features will be free, however some will require payments with ELI tokens. Those include product hunts, second hand listings on second-hand online stores, connected to our platform, Eligma’s escrow service, decentralized item sales, advertising on the platform, purchasing exclusive items and other solutions we might develop in the future.
ELI tokens, spent for using platform features, will be transferred to a fund, dedicated to reward plans.
The best part is that the list above is not exhaustive but contains just some of our suggestions and planned features. In time, merchants will devise their own methods that will further enrich Eligma.
In light of all this, the real purpose of our crowdsale becomes obvious. Besides raising funds, we are trying to distribute ELI tokens to as many people as possible. In this way we will create a far-reaching community with a vibrant ELI token economy that will develop and grow in the years to come.
[1] Swiss Financial Market Supervisory Authority (FINMA) was the first authority to define not only two but three categories — securities (asset) and utility tokens and payment tokens as the third category.
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