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Posts : 65
Join date : 2022-10-27
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IAO token and velocity problem  Empty IAO token and velocity problem

Wed Nov 16, 2022 12:42 pm
A major issue in concerts is often getting scammed and there is good reason for it. Jennifer wrote in an article on the problems faced by consumers in her article: https://www.cnbc.com/2014/05/02/making-your-summer-concert-plans-how-not-to-get-scammed.html

Based on this another article mentions the problem could be solved by Kyle Samani mentioned that using block chain technology would solve two major problems. She says that "Issuing tickets on blockchains can bring other benefits, including disallowing resale, profit sharing on resale back to the venue, capping resale amounts, etc. Ticketing on-chain should create a lot of value for venues, artists and consumers: it eliminates fraud, reduces scalping, and reduces fees to middlemen", but then she mentions one problem that would be faced by both consumers and venues saying "Venues also don't have the incentive to hold Karn tokens because they, too, want to avoid price risk. After consumers trade their tokens for concert tickets, venue hosts will trade Karn tokens for their preferred currency. Note that this cycle can be completed in seconds by leveraging decentralized exchanges".

If you look at the XTO whitepaper they solve this exact problem for the music industry by simply taking into account the amount of time a consumer holds the token increasing its value.

I found this feature quite interesting to learn about to putting it here or anyone interested.
Posts : 66
Join date : 2022-10-27
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IAO token and velocity problem  Empty Re: IAO token and velocity problem

Tue Nov 22, 2022 11:53 am
This model will reduce the number of transactions if there is an incentive to hold the tokens for a longer period of time. Whenever these tokens are used for the intended purpose are being utilized fully? I mean is it the whole token or a fraction of a token that will be exchanged? what will be the model there? would it not reduce the velocity of the token being used?
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