The Token Model
The VUUPLE Token
Most blockchain-based companies have created their own native token that allows users to engage in special functionalities on their platform. Almost all native tokens can be redeemed at any time external to the platform and are subject to price volatility. Token price stability, however, is crucial to the operational ability of a given platform and necessary to eliminate financial harm to users. These are the reasons behind our decision to create an internal utility token. Our token is specifically used for the functions within our platform and network.
VUUPLE (Utility Token)
The VUUPLE token will only be used on the Vuuple platform for the purposes of data storage purchase and data hosting payment. This token will not be sold in any ICO or on any exchange. VUUPLE will carry a fixed platform exchange rate of:
1 VUUPLE= USD $1.00
Renters will be able to buy and (both renters and lenders) will be able to redeem VUUPLE on the platform at the fixed exchange rate. Renters will be able to buy VUUPLE with fiat currency and all users will be able to redeem tokens for fiat currency. We decided to only allow users to purchase VUUPLE with fiat currency for two specific reasons:
- We wanted to minimize the probability that users would buy VUUPLE with other cryptocurrencies and then immediately redeem the token for fiat currency at a significant gain.
- The process is long, tedious, and expensive for exchanging a large amount of cyptocurrency on exchanges.
The price of VUUPLE will not fluctuate, as the token will not be listed on exchanges and sold external to the platform following the launch. The token will always be redeemed on the platform for a fixed price. If a change in price were to occur, users will be given ample time to redeem their tokens at the original price in which the token was purchased or the given as payment.
