Investx’s Dynamic Currency Supply
Investx will control the flow of new INX tokens sold through the platform, and will mint and burn according to platform interactions with the Investx Reserve.
Investing in businesses: INX tokens which are used as payment to invest through the platform are exchanged for GBP when a deal completes, from the Investx Reserve, and then GBP is paid to the company fundraising. The INX tokens are burnt after they have performed their smart contract functionality.
When investors pay for their chosen investments using fiat or other cryptocurrency, the equivalent value of INX tokens are minted, and used internally to power the smart contracts in the platform. When the deal successfully completes the newly minted INX tokens are burnt.
Investment Returns: When a business which successfully raised funding on the Investx platform pays out a dividend or when the business is sold, the proceeds will be received by Investx in either GBP or other fiat currency. The net proceeds payable to the shareholders will be converted into newly minted INX tokens of equivalent value and distributed to the shareholders’ accounts. The GBP or other fiat currency received is held safely in the Investx Reserve maintaining the reserve backing of the whole ecosystem.
Crucially, newly minted tokens do not dilute token value.
Fiat Reserve-Backed Token Issue: To maintain a supply of INX after burning, new tokens will be minted and sold by Investx. The proceeds will be received in a number of crypto or fiat currencies and converted into GBP which is placed into the Investx Reserve. Because tokens are only minted when new currency enters the ecosystem the reserve-backing model is upheld, and there is no dilution in token value. While new tokens sold will expand the overall supply, they only do so in response to increased demand.
All crypto transactions will be treated according to Generally Accepted Accounting Principles (GAAP). Investx’s financial accounts will recognise the relationship between the total INX token supply, the value of the Commitment and the Investx Reserve and ensure that these reconcile to one-another to maintain transparent reserve-backing of the token supply.
Inspired by Holochain, we follow the same principles, to allow a token value increase to still retain real world purchasing power.
A currency that is issued and operated this way is called a mutual credit currency. Just like a mutual credit currency, Investx accounts for an equal but negative token balance in its own records when a token is minted. A currency where someone gets to create value from nothing is called a fiat currency, from the Latin word “fiat” meaning to “proclaim, declare, or speak into being.
You can check the INX token smart contract, and the minting and burning functionality, here and live on the Ethereum blockchain on etherscan.
We launched our ICO pre-sale on 1 November 2018, please see our website www.investx.io for how to get involved and for access to our White Paper and Currency Paper. You can also keep up to date through the following channels:
Follow Investx:
Twitter — @investxltd
Bitcointalk — Investx [ANN] thread
Facebook — InvestxLtd
LinkedIn — Investx
Telegram — investxtoken
Medium — investxltd
Github — Investx
