What is deflation in the EasyFeedback token?
Money by decree or fiat money (from the Latin “let it be done”) is a kind of money characterized by the legal backing of a State. It is the one that is based on the faith or trust of the community, that is, it is not backed by precious metals or anything that is not a promise of payment by the issuing entity. Fiat currencies are the US dollar, the euro , the yen … (Wikipedia).
The euro, the dollar, the yen, etc. they are inflationary currencies. This means that there is no limit on the amount of currency that is issued “by decree” by their respective Central Banks. Depending on their monetary policies, they can create and market more bills and coins. The main problem is that, as the amount of currency issued grows, its value decreases. What causes that the value of the currency is difficult to estimate since its offer can increase at any time.
Deflation in EasyFeedback token “EASYF” is explained by the following characteristics:
1. “EASYF” Limited Money Supply
- The “EASYF” token is created to reward people who communicate useful feedback to improve products, services and processes of companies and institutions. Feedback between companies and clients will be infinite over time. We have opted to set up a high but limited total supply and a system to guarantee perpetual sustainability, that we explain in point 4.5. Therefore, only a maximum amount of 179.141 million EasyFeedback “EASYF” tokens will be issued. No more “EASYF” tokens will be created.
- This is thanks to the Ethereum blockchain technology. Using this network, we have programmed a Smart Contract related to the EasyFeedback token under the ERC20 standard.
- 1% of the tokens will be pre-mined and used for the launch of the token through an ICO (Initial Coin Offering). Tokens that are not used in the ICO will be burned.
- The other 99% is reserved to reward, through Proof of Feedback (PoF), EasyFeedback users who send feedback to companies over time.
This is how the money supply of EasyFeedback tokens is limited. The amount of “EASYF” that can be distributed is finite. The maximum “EASYF” offer is known and the “EASYF” offer in circulation as well.
2. “EASYF” issuance process
- The only way to mine the “EASYF”s will be with the “Proof of Feedback”. The issuance process is stable and is limited by the amount of “EASYF” that can be awarded through the Proof of Feedback (PoF).
- We delegate the function of mining these tokens to a minting contract. This contract will be the one that grants the “EASYF” corresponding to the user. The regulatory node collects the instructions decided by the oracles (internal, company or lawyer) and connects with this Smart minting contract to grant the corresponding “EASYF” to the user. The tokens are minted and delivered because user feedback brings new real value to the company.
- The “EASYF” release is transparent. The exact number of new “EASYF” shitting the market is known. It is adjusted by the Proof of Feedback (PoF) given to each feedback from the oracles (internal, company or lawyer).
Three of the seven members of the Court of Jurors will be assigned to each feedback message received, by an automatic and random draw and will be responsible for evaluating them. In the whitepaper we explain how the jury is appointed and who can be a member.
Each Juror will perform the evaluation independently without knowing the identity of the user who sent the feedback, or the evaluation of the other Juror and, therefore, not knowing the final evaluation either.
The final result of the evaluation will be the average of the 3 Jurors’ scores and will only be known by the user who sends the feedback. For each of the three categories of the feedback that are evaluated (USEFULNESS, ORIGINALITY and EXECUTION) the Court of Jurors will use the following grading scale:
In this way, the maximum score that could be obtained from each Juror would be 12 points:
USEFULNESS: 4 + ORIGINALITY: 4 + EXECUTION: 4
And, therefore, the maximum total of 3 Jurors would be 36 points giving a final result of an average of 12 points.
A meritocracy system will be implemented to evaluate the jury’s work in the medium term and they will be awarded based on the quality of the work they are doing.
The “EASYF” granted by the lawyer oracle will depend on a favorable judicial resolution to the claim presented by the user.
All scores will be transformed into tokens by the equivalence of:
- 12 points have the equivalence in USD to the US price of 1.4 Big Macs:
$8 / $5.71* is worth one Big Mac = 1.4 Big Macs
* accordingly to the price published by The Economist magazine in July 2020.
- This allows us to update the value of the Proof of Feedback (PoF) every six months (January and July) based on an internationally recognised index such as “The Big Mac Index”. If this index were not available, a similar one would be used.
- The amount of $8 comes from the average price estimated by a mystery shopper for a questionnaire. This value of 8 dollars with the equivalence 1 “EASYF” = 0.05 Dollars, corresponds initially to 160 “EASYF”. The 160 tokens will vary based on the value at which they are currently trading on the market. In this way, the maximum Proof of Feedback (PoF) is the same over time.
This system limits the amount of “EASYF” that are distributed being a finite and tight release system. Each time feedback is sent and a token is received through the Proof of Feedback (PoF), less amount of “EASYF” will remain available to reach the market.
3. Adoption of the Proof of Feedback (PoF)
1. The technology that will support the Proof of Feedback is based on:
- EasyFeedback.com, platform that uses a technology that has been working at 99.9% since its launch in august 2015.
- And the Ethereum blockchain, on which easyfeedback.com tokenization is based. It is the second most important in the world and the first in terms of the possibility of carrying out a Smart Contract.
- Our transactions do not need to be immediate, part of the work is done offchain and later onchain is processed in the Ethereum network
2. Private feedback between consumers and companies is a reality that helps to resolve two issues that have existed, exist and will exist:
- The communication problem between people.
- The aspiration of humans to improve things.
With the more than 350,000 private feedbacks sent through EasyFeedback.com we want to show that adoption / usefulness is a reality. The EasyFeedback tokens will incentivize the use of the platform and can be exchanged for products, services, cryptocurrencies or money at market prices.
Users who receive the “EASYF”s do not have any “urgent” incentive to dispose of the tokens they have received. They do not have specific structural costs (electricity, equipment, maintenance) as a consequence of having carried out a Proof of Feedback (PoF) that pressures them to sell the tokens obtained.
They can accumulate the “EASYF” until they have the necessary amount to buy the desired product in our online store or save it as a savings method. They will be interchangeable for other cryptocurrencies or usable through debit cards for the purchase of products or services.
The owners of “EASYF” can make decisions that affect the governance of the project such as: the rules for the selection of the jurors and lawyers involved in the oracles, the variables on which to assess the amount of “EASYF” that can correspond to a feedback, the maximum amount of “EASYF” that can be granted by the Proof of Feedback, etc.
All these tokens in circulation will be stored in buyers’ wallets but they could not be available in the market.
4. Acquisition of EasyFeedback token
he possession of “EASYF” is regulated by the Government of Estonia (a country belonging to the European Union) through license number FVT000423 specific for the provision of virtual currency services.
The EasyFeedback Token offer to the market will initially be in the hands of:
1. The people and companies that acquire “EASYF” in the ICO.
2. Users who have received a reward for helping us to publicize EasyFeedback Token: Advisors, referrals, bounties and online store buyers.
A vesting system is being worked on to deliver the majority of “EASYF”s over at least one year from the moment they are listed.
And once we tokenize EasyFeedback.com:
1. People who receive “EASYF” for their Proof of Feedback (PoF).
2. The Jurors who intervene in the evaluation of the feedback sent.
3. Easy Feedback Token OÜ for the “EASYF” that obtains by selling “EASYF” products in the online store and that, part of them, puts on the market to pay its suppliers. The rest holdoes it.
The “EASYF” demand that will set the price will be made up of:
1. Investors (who see “EASYF” as a long-term asset).
2. Customers of the online store who want to buy products but do not have “EASYF”.
3. Companies that want to contract the products EasyFeedback PRO, IoT, Health, Survey, Review and Stats:
- A minimum staking of “EASYF” is necessary to contract them.
- They must buy “EASYF” to reward users for their feedback on each of the products.
The value of these products for companies will be closely related to the quality and quantity of feedback received.
The feedback sent belongs to each sender/user.For this reason, each time that feedback takes part of one of these products, the user will receive a percentage of the profit generated by the sale of that product in “EASYF”.
Therefore, the same feedback can generate profit repeatedly over time.
4. Users who want to participate by giving their feedback in EasyFeedback IoT, Health, Survey and Review they must stake a minimum to be able to access. Our “EASYF” Staking system is based on:
- The need to have “EASYF” to access certain products.
- The amount of “EASYF” to be staked.
- The time they are staked.
5. Easy Feedback S.L: Every year 20% of the profits of Easy Feedback S.L. will be dedicated to buying “EASYF” tokens on the market. Once the purchase of tokens by EasyFeedback S.L is finished:
- 50% of the tokens obtained will be burnt.
- The other 50% of the tokens will be reintroduced into the Total Supply of available Tokens to be redistributed to users who send feedback, guaranteeing the sustainability in the supply of “EASYF”.
Feedback is a hidden treasure/knowledge that thanks to the Proof of Feedback (PoF) will be recognized. Our business model is based on the intrinsic value of this original, useful and transformative feedback that improves the world.
We believe that the measures put in place to make the token deflationary and those related to the incentive of its demand will make each EasyFeedback “EASYF” token to acquire a higher value over time.