Recently launched, open-source IQ Protocol aims to solve the struggle in a proper token economy model for any crypto project that offers services or products.
TALLINN, ESTONIA / ACCESSWIRE / September 28, 2021 / Leveraging PARSIQ‘s revolutionary IQ Protocol, businesses will now be able to seamlessly construct blockchain SaaS models – enabling companies across all industries to tokenize their product or service for consumption on-chain.
This is possible via IQ and the introduction of a concept known as Life Time Value (LTV). When a company tokenizes its offerings, each token is assigned an LTV, giving the token holder the right to consume a defined amount of goods or services.
Such a concept allows practically anything to be put on the blockchain – from the content streaming business to your local market, a business can tokenize their product offerings and assign each issued token an LTV.
The ‘Token Not Needed’ problem refers to all the cases when companies successfully raised funds through a token offering and lost the value of its token leaving it just as a product discount or other unnecessary utility. Issued tokens often lose viable use cases after ICOs.
Crypto Economy is Used to Be Linear not Circular
Unfortunately, there are blockchain companies out there which follow very linear models:
- Person takes fiat to exchange for tokens from business
- Person uses tokens to buy service from business
- Person consumes service from business
- Business sells tokens to next person
For token holders, many rely on the assumption that, as more people come into the project’s ecosystem, the more that the token will achieve greater utility, the token economy will then be stronger, and as a result of that, the price of the token will rise.
Under this example, this logic is flawed. The token’s utility has already been defined up front. Whether a project has one user or 1,000 users, the token will not achieve more utility given this tokenomic model.
While the token may rise against a fixed supply and increasing demand, it is unlikely that it will appreciate significantly if the model is ultimately to use the token to consume the service.
Hodling the token would be akin to hodling the service, something that makes little sense, especially for projects which are accepting fiat or other crypto as forms of payment, thereby nulling the effects of hodling or general long-term holding of the token.
Pitfalls of tokens as AppCoins, see more – https://iq.space/docs/iq-yellow-paper.pdf
However, with the IQ Protocol, such companies can tokenize their product offerings -incentivizing communities to hold project tokens for the life of the token, while enjoying the value that has been assigned to that token.
Further, token holders have the potential to earn, by depositing their holdings in renting pools and acquiring interest payments.
Through IQ, a project can develop a circular economy, drive demand for their services and their token, which ultimately benefits all believers of the project being supported.
Without a real economy – where users transact with other users, where businesses transact with other businesses, and where users and businesses transact with each other, there is nowhere for the funds to come “full circle”, where the spending of one party has a downstream impact on other participants in the same economy.
Now PARSIQ’s IQ Protocol Provides Existing Tokens Utility
Fixing a broken economy is not for the faint of heart, after all, full careers have been built around such monumental tasks – understanding everything from borrowing and lending, to national and global consumption in the consideration of setting various economic policies.
However, in the context of token economies, PARSIQ, and its revolutionary IQ Protocol, has created the ultimate “plug and play” tokenomics model. This solution, which is industry and blockchain agnostic, lays out the framework to provide instant utility to existing and/or planned tokens.
IQ Protocol is a risk-free, collateral-less solution to tokenize subscriptions. Effectively, any product or service sold by a project can be turned into a subscription – where access to that solution is controlled via the project’s token. Under this protocol, PARSIQ has completely reimagined how the subscription model is executed, and has also introduced a new dimension in terms of how businesses can operate.
As an open-source protocol, any project can utilize IQ to fit their needs. Because of this, companies can customize the solution to ensure a proper fit to their existing business models. Further, the costs of implementation are manageable, limited to the costs for paying GAS.
Under this efficient and easy to adopt model, PARSIQ is currently working with over twenty companies in deploying IQ Protocol.
Crypto projects utilizing IQ Protocol can:
Issue utility tokens that are not securities
- The system is transparently designed such that the criteria for securities do not apply to tokens issued on IQ Protocol;
- Services built into IQ Protocol, such as the risk-free lending and borrowing feature, are completely non-custodial;
- Lenders can provide capital liquidity to the protocol voluntarily and control their tokens through trustless smart contracts;
- Since voluntary lenders or borrowers use the service at their own will, projects will not be held accountable for any guaranteed returns from the lending pool.
Make token issuance simple and secure
- No need to think about how to implement complex tokenomics when issuing tokens because IQ Protocol has industry-grade security frameworks already built-in;
- Benefit from the ease of having proper tokenomics ready to customize and deploy;
- This means that companies can focus on the business logic and execution using the token without having to worry about underlying technical complexities.
PARSIQ is using its unique IQ Protocol to power its world’s first SaaS company. To learn more on this implementation case, visit their main site here.
About PARSIQ
PARSIQ is the next-generation monitoring and intelligence platform for various blockchains.
PARSIQ has signed collaboration agreements with top-tier partners globally. In September 2019, Algorand, another startup blockchain monitoring system, enhanced its analytical capabilities by adding PARSIQ to its platform.
By June 2020, PARSIQ and Dash, a leading provider of end-to-end cryptocurrency payment services, formed an alliance to allow real-time Dash transaction notifications via PARSIQ’s Smart Triggers. Three months later, the firm cooperated with Bitfury Crystal and integrated its transaction risk scoring capabilities into the PARSIQ system to power their AML and KYT processes. In November 2020, PARSIQ and AllianceBlock announced a new partnership with a focus on data sharing in both DeFi and TradFi.
In 2021, PARSIQ entered into another string of alliances, including SuperFarm, Injective, PAID Network, Polkadot and ChainLink. The latter, to allow integration of its oracle price, feeds into PARSIQ’s monitoring and automation platform.
PARSIQ (PRQ) has been listed on the OKEx exchange since January 2021.
To learn more about PARSIQ, please visit the following website: https://www.PARSIQ.net/en.
For more information, please contact:
Anastasia Nesterova
Email: anastasia@parsiq.net
Telegram: https://t.me/parsiq_group
Twitter: https://twitter.com/PARSIQ_net
YouTube: https://www.youtube.com/parsiq
SOURCE: PARSIQ
View source version on accesswire.com:
https://www.accesswire.com/665899/IQ-Protocol-a-DeFi-Framework-for-Digital-Asset-Renting-to-Solve-the-Token-Not-Needed-Problem-in-Crypto
