Resolving Conflicted Conditions Called Price Stability and Price Variability — Delio project
“There are many problems to go solve to use current cryptocurrencies for businesses. The problem is on that there is no reasonable one for payments. I call this One Token Problem.”
This was said by CEO James Jung who is in charge of the Delio project. He diagnosed the problem as one kind of token having both characteristics of utility tokens and security tokens.
■ Cryptocurrencies in Dilemma of Usability and Price Variability
Most cryptocurrencies has characteristics of utility tokens that represent the access of services and products the project and businesses offers. For utility tokens to be used as payments, the price variability cannot be wide. Thus, it is hard to find a good justification of purchasing on higher price with payment tokens at an exchange. Another disadvantage is that they are not so different from ‘points’ or ‘mileages’ the businesses offers.
Most of utility tokens tend to have characteristics of security tokens too. Security tokens Security tokens have characteristics of stocks, thus the value of security token increases as the value of company increases. But more they are like security tokens, the amount of tokens in circulation decreases, thus it is hard to use as active payments.
■ The Delio Project Challenges the Cryptocurrency Payment Market with Stable Stake Coins
CEO Chung explained that in order for cryptocurrencies to be actively used as payment option, a coin needs to be used for their intended purposes. An example is the cryptocurrency of the Delio project. CEO Chung called the cryptocurrency of Delio project as Stable Stake Coins (SSC). SSC not only has tokens for payments, but all elements required to be business ecosystem, such as PG, shopping mall, exchange, etc.
The Delio project issues two types of cryptocurrencies: DELO, a utility token, and DELIO, a security token-like cryptocurrency. DELO token can only be used as product payments, and there is no limit for issuing amount. As more affiliated businesses use the cryptocurrency, the issued amount increases as well. As it prioritizes the price stability, it is not listed on the cryptocurrency exchange, but used only in Delio ecosystem.
It is designed to exchange DELIO token for a fixed amount of DELO token.
Delio token is a variable coin the value can increase. Unlike DELO token, it is listed on cryptocurrency exchanges, and the issuing amount is limited at 5 Billion Tokens.
■ Free Configuration of Cryptocurrency Use Condition by Users
The strength of DELO token is that it is a programmable token. It is possible to program special conditions on cryptocurrencies, a digital form of asset. For example, one may give some pocket money to their children as cryptocurrencies, but design it to be unusable in certain circumstances. The user may set the condition as not usable for purchasing alcoholic drinks or cigarettes at affiliated convenient stores, or not usable at cyber cafes.
The Delio project offers services other than separating DELO and DELIO to help ease use of issuing and managing cryptocurrencies, developing mainnet, etc. for large, middle-small businesses. Within the ecosystem of Delio, each business may easily issue tokens and operate dApp services.
CEO Chung said “Many cryptocurrencies are claimed to be viable payment, but they only rely on the reward feature. It is difficult to operate business only with rewards, and I think issuing tokens continuously while purchasing products cheaply with rewards is shifting responsibility to someone else in some way; it is sort of ‘a bomb game.’” He also confidently added that “The SCC ecosystem of the Delio project is stable and still satisfies the desire of investors (price fluctuations), and it will win a success in the payment market.
<Block Chain News> Lee Sang Hun
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