“ Since societies transitioned from a barter economy to using money as a medium of exchange, individuals have tried to devise systems that allow for rational ways to exchange value. In order to help make goods and services measurable, the Greek philosopher Aristotle came up with four criteria that help to dictate what is considered to be ‘good money’ (Lee, 2009):
1. It must be durable 2. It must be portable 3. It must be divisible 4. Have an intrinsic value
The Blockchain enables the transition to money-as-a-protocol between peers, allowing market based competition to deliver more ideal forms of money, still cryptocurrency lack the stability to get the trust of every one on earth, the issue is been marked significant in cryptocurrencies fluctuations ups and downs. The fact that cryptocurrencies are becoming more acceptable in today business left its value determined only by currency scarcity and market demand.
Cryptocurrencies were designed as a peer-to-peer electronic cash system. The nature of the cryptocurrencies working mechanism has enabled it to survive and market to grow. But, unfortunately its copy and paste and un-flexibility policy has resulted in price volatility, which is a weakness in its design. And, although all the cryptocurrencies advantages, the fiat currency still has one important benefit over cryptocurrency: the stability.
In the long term, the diminishing purchasing power of fiat money is causing inflation. And, people still looking for a form of money which they can rely on to maintain its purchasing power. This is why the creation of a stable and steady increasing value cryptocurrency is so critical. Till a new one is born, cryptocurrencies will be disadvantaged.
FOOOZ is a decentralized token over the trusted Ethereum network, where invested money are collected from investors and directed towards mining activities of other coins. These mined coins; part of it are allocated as collaterals for FOOOZ tokens in hold by investors, another portion of it is re-invested in the mining of coins and the third portion is distributed among the investors.
FOOOZ token will continue preserve coins in a trusted secured wallet, which creates an over-collateralized token that leads to a steady increase of its value in the market; keeps price resistant to market drops. FOOOZ token is issued in a fixed quantity controlled by the Ethereum smart contract. And, On a certain pre-set values a the smart contract will eliminate coins from the market and release some new tokens to the market; where they will be sold per market price and portion of the sale price is locked in the trusted wallet to rise the token face value of the token more in the market, another portion is distriubuted among the investors and the rest will be invested in increasing the hashing power of the collateral coins.
To establish the first initial value of the token, we will re-invest the collected profits from the coin mining activities of the first two quarters again in mining. Starting from the third quarter, the coins will be distributed among the investors, the mining working capital, and locked in the trusted collateral wallet. The Token price can be predicted with a complex formula, combining the collateral coin values, the mining hash power of the FOOOZ mining activates, the reserve coins in the trusted wallet, the market cap of the token, the market demand and tokens offered to sell in the market . A more detailed document analyzing the financial viability of the collateralization and Token future price will be released in early 2019.
The collateral-backed stability is a far safer and simply locked in a smart contract. Over looked by publically nominated accounting and auditing offices, this ensures confidence that the system is transparent and collateralized at all times.
All the market will be able to see in full, the current status of FOOOZ token. This also ensures the FOOOZ token is protected from panning and that seizure of the collateral is impossible since it’s a publically owned by all investors.
FOOOZ TOKEN FEASIBILITY
It is important to understand the transaction volume needed to start the ideal collateral mining activities is $10,000,000 and we anticipate to raise at least 5 times that number in FOOOZ ICO ; however starting in a smaller scale will create a very successful token too, because in that un-expected event, the number of the sold token will be less and the working hash power will collateral the fewer amount of tokens in the market faster. And it creates in that scenario a scarcity to the token, that serge token value up faster.