Token trading system

Token trading system

System architecture:

System composition: Contains token nodes (TN), user nodes (UN) and provider nodes (PN), and transactions are executed between nodes through smart contracts.

Token nodes: Associated with provider nodes, representing tokens of specific products or assets (such as goods, services, rights, etc.).

User nodes: Obtain token units (Voucher Tokens) by providing reserve account units (RU).

Provider nodes: Associated with token nodes, responsible for supplying products or services.

Token generation and trading mechanism:

Token value: The value of a token changes dynamically based on its reserve volume, the number of tokens in circulation, and the reserve ratio (RR).

Transaction process: User nodes purchase tokens through reserve account units, and token nodes generate tokens based on the current price, and transfer part of the reserve units into the reserve and part out of the reserve.

Reverse transaction: When the token returns to the token node, a reverse transfer is performed to limit or neutralize the value fluctuations when the token units are received and returned.

Token type and conversion:

Convertible tokens: Tokens can be converted between "convertible tokens" and "voucher tokens", the latter of which are associated with specific assets.

Waiting list: When the convertible token reaches the available upper limit, the newly purchased token enters the waiting list.

Conversion request: Users can request to convert the tokens in the waiting list into voucher tokens to obtain assets.

Time factor and IH factor:

Time range: Users specify the time range for purchasing tokens, and providers determine the available date based on supply capacity.

IH factor: The IH factor is introduced to regulate the allocation of reserve units and control the volatility of tokens. The IH factor is dynamically adjusted based on time data, supply and demand data, etc.

Network insurance and reinsurance:

Support token: A specific token (support token) releases reserve units or products when a triggering event (such as an accident, disease, etc.) occurs.

Network insurance: A support commitment network is formed between nodes, and risks are dispersed through the reinsurance mechanism to improve the robustness of the system.

Network effect and reward mechanism:

Network effect: The system incentivizes nodes to increase network utility through reward mechanisms, such as allocating token units based on factors such as purchase intention and sales realization.

Mutuality score: By calculating the potential reciprocity score, the transfer of reserve units between nodes is determined to smooth the fluctuation of token value.

Debt management and token refund:

Debt record: The smart contract records the debt of the provider node to ensure compensation when some reserve units are unavailable.

Token refund: Before the token is refunded, the smart contract verifies the available reserve units and performs the refund operation to ensure the fairness and stability of the system.

Practical application cases:

Gift cards, coupons: The token system can be applied to the generation and trading of vouchers such as gift cards and coupons.

Local currency: Local currency is generated through the token system to promote economic activities and resource exchange within the community.

Answers to short-answer questions:

What are the main components of the system?

The system mainly consists of token nodes (TN), user nodes (UN) and provider nodes (PN).

How is the value of the token determined?

The value of the token changes dynamically according to its reserve (R), the number of tokens in circulation (S) and the reserve ratio (RR), following a mechanism similar to the Bancor formula.

What is the IH factor and how does it affect the system?

The IH factor is a parameter that dynamically adjusts the allocation of reserve units to control the volatility of the token. It dynamically adjusts based on factors such as time data, supply and demand data, and increases or decreases the number of reserve units entering the reserve.

How does the system handle token conversion and waiting lists?

The system allows tokens to be converted between "convertible tokens" and "voucher tokens". When the convertible token reaches the available upper limit, the newly purchased tokens will enter the waiting list and wait to be converted into voucher tokens.

How do network insurance and reinsurance mechanisms work?

Network insurance is implemented through a network of support commitments between nodes, and when a triggering event occurs, reserve units or products are released. The reinsurance mechanism disperses risks and improves the robustness of the system through mutual insurance between nodes.

What is a reciprocity score and what is its role in the system?

The reciprocity score is calculated by the system and represents the degree of potential reciprocal transactions between nodes. It is used to determine the transfer of reserve units between nodes to smooth token value fluctuations and promote transaction balance within the system.

How does the system handle token refunds and debt management?

Before the token is refunded, the smart contract verifies whether the provider node has enough reserve units available and executes the refund operation after verification.