How is SDT able to expand in value while other crypto prices fall?
Send has introduced the concept of semi-stable digital money as a way to fulfill everyday uses.
What is the correct price for a cryptocurrency?
In today’s market influenced by speculation, news, opinions, market manipulation and high volatility, it’s difficult to know if a crypto price is correct or if holding digital value through cryptocurrencies is secure.
At Send, we believe that price should be defined by measures of real use and that a conservative, liquid price that grows organically with increased use over time could bring stability and efficiency to a network.
With this logic in mind, we created the Send Protocol, with a token (SDT) that maintains temporary price stability during defined periods and expands in value as use increases. SDT price is sustained by use within a consensus network of applications without a need for collateral assets.
Why does SDT value expand rather than remain fixed?
Decentralized digital money should offer incentives to compete with centralized actors that reward consumption with points, miles, gift cards and cashback. A stable token, while offering stability needed for real use, fails to offer incentives for demand evolution and ecosystem growth.
SDT value expansion is possible due to a fixed token supply and dynamic price mechanism, while supporting traction, adoption and ecosystem development early on.
How will Send validate the hypotheses of a semi-stable economy?
Hypothesis 1: Periods of price stability create efficiency in daily transactions leading to increased demand for real use.
In June 2018, Send Protocol released an initial supply of 1.5M SDT to migrant users within WeSend.co at a fixed price of $0.20 USD/SDT. Releasing this initial token supply to users in strategic corridors with a need for cross-border transactions serves as a way to test our first hypothesis.
Hypothesis 2: Liquidity from real use sustains a healthy SDT price over time.
With this initial token supply, we aim to reach a target transaction volume of $1,620 USD in daily remittances with a milestone of $100,000 USD in accumulated transactions to validate a second hypothesis.
Hypothesis 3: Community follows the Consensus Price.
During a one-year token distribution, SDT price will evolve linearly based on distribution participation with a starting price of $0.20 USD/SDT and an upper-bound of $20 USD/SDT. The distribution price, which will update every 24 hours, will be used and validated as the official reference price within WeSend. In this way, price formation represents liquidity around the SDT token and will enable us to prove a third hypothesis.
Scale stage
Once these initial hypotheses are validated at a considerable scale, Send Protocol will migrate to a new blockchain infrastructure designed for massive adoption with higher performance per second and lower transactional cost.
We imagine you may have more questions: check out our Whitepaper and Token Economics at www.Sendprotocol.com.
