Recently I’ve been writing about Power Ledger, the decentralized, trustless energy platform.
Part 1 did an overview of the project while Part 2 went over some of the project they’ve already worked on.
Part 3 goes over the platform and its tokens, POWR and Sparkz.
The platform is an ecosystem that enables interoperability between diverse market management and price mechanisms and units of electricity (kWh) by way of pre-purchased tokens.
The market flexibility of the Ecosystem is facilitated by deployment of a dual token Ecosystem (POWR and Sparkz) operating throughout its two blockchain layers.
POWR tokens are the frictionless blockchain tokens that allow Application Hosts (such as a utility) and Participants access to and use of the Platform.
Sparkz tokens are issued against escrowed POWR tokens, via a Smart Bond, and used by the Application Host to onboard its customers.
Off the shelf and third-party applications can be used in the Ecosystem. An example is Power Ledger’s FuseBox, an application that manages and on-boards customers to the Platform.
Sparkz are specifically limited to representing the tokenized value of a unit of electricity in varying markets around the world. Sparkz and POWR tokens are exchangeable, connecting the functions of the Ecosystem.
Sparkz maintain a steady exchange rate between local market electricity prices and the exchange priced POWR tokens. See the picture below for a graphical of how it all intertwines.
The POWR token serves as the fuel of the Power Ledger Ecosystem.
POWR tokens provide governance and consumer protection through Smart Bond technology, facilitate access to use the Platform, provide loyalty rewards to Participants, connect with renewable energy charities and organizations, and provides access priority to Asset Germination Events.
The Smart Bond technology is interesting because the more POWR tokens that are escrowed for Sparkz, the more organic demand is created for the POWR tokens.
That means if POWR is successfully adopted the price of the token should rise substantially.
What do you think of Power Ledger?
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