The dual-tokens model of Forbole Blockchain

“twom white flying rockets during daytime” by SpaceX on Unsplash

(中文按此) In the world of proof-of-work blockchains such as Bitcoin and Ethereum, if you would like to mine the tokens, you have to invest in your computing power and consume electricity, These are the costs you need to bear, in reward for Bitcoin or Ether. If you have committed wrong calculation or other wrong-doing or misbehavior, you will suffer a loss as you have used your computing power and electricity but have not gained the reward. This is the Law of Equivalent Exchange.

What if we no longer need mining by adopting proof-of-stake consensus? Who’s gonna do the calculation? How? What if they have done something wrong?

Base on Cosmos, we adopted a dual-tokens model, The first one is Desmo [ˈdɛsmɒ]. Holder of Desmo can stake their Desmo in return for the eligibility to validate the transaction on Forbole Blockchain, and hence can earn transaction fee in terms of Desmo or Phanero. As such, one can view Desmo as a long-term asset that can generate income. If the computing power of a Desmo holder is not qualified to become such a validator, he can delegate his Desmo to other and gain a share of transaction fee. Desmo is the token we will issue in our crowdsale campaign..

Desmo is designed as a long-term asset such that we will have enough qualified people to validate the transactions and hence maintain the governance of our blockchain. So Desmo should not be relied upon as a trading tokens as this will encourage Desmo holders to use Desmo for short-term purpose instead of participating the governance of the blockchain. We need to have a more liquid token which is suitable for short-term purpose, and this is Phanero [fəˈnærəʊ]. There will not be any crowdsale of Phanero. Users can gain Phanero by making contributions to Forbole (except if our proposed hard spoon on Steem will take place).

Simply put. Desmo is like investment properties which can generate income. This will discourage you to do short-term trading or speculation on Desmo. But if the holders are all holding Desmos, there will not have enough Desmos for people to trade or utilize. That’s why we need a more liquid Phanero which will act like a monetary asset to provide liquidity to our blockchain ecosystem.

On Forbole Blockchain, we have Desmo for long-term purposes and Phanero for short-term purposes. They make our tokenomics more complete.

Originally published at www.forbole.com on June 10, 2018.