Some say crypto-currencies are just a fad and will go away. They have predicted doom for those who bought Bitcoin because it is about to go to Zero. On too many occasions the naysayers have predicted the death of Bitcoin and been proven wrong.
It does not mean that they ended up with egg on their faces. It only means that they know crypto-currencies are here to stay and they want in, but just at a certain price and that means a lower price.
The naysayers just want to maintain their dominance in both the real world and the cypto-verse, but will they be able to dominate Populous’ World?
Cryptos in Populous’ World
Populous is bringing about a revolution with the in crypto-verse by introduction of not one but three cryptos. Each have their own unique characteristic in Populous World. The first to be introduced was PPT, then came Poken and to top it off, free PXTs to PPT token holders.
In short:
PPT – A collateral used to exchange for Pokens.
Poken – A stable crypto-currency used to purchase invoice.
PXT – A crypto-currency used to purchase XBRL data.
Three Populous cryptos that compliments each another. We understand what PPT and PXT are used but what about Pokens?
What is a Poken?
A Poken is an ERC20 compatible crypto-currency and behaves just like any Ethereum based crypto-currency. It is an in-platform stable crypto-currency pegged 1:1 to fiat and is currently considered as an in-platform crypto-currency because use of the Poken is currently confined to the Invoice Discounting Platform.
Since Pokens are ERC20 tokens, they can be withdrawn from the platform to any external Ethereum based wallet. As the Poken become more widely known and the crypto economy grows, Pokens will also be an off-platform crypto-currency.
What is the Use of Poken?
Pokens do not yet have many use case because it is the new kid on the block. At the time of writing, Pokens can only be used to buy invoices on the Invoice Discounting Platform but it can also be used as safe haven coin. But its main purpose is more subtle!
Transfer of Value
Pokens are primarily used to buy invoices in the Invoice Discounting Platform and by using Pokens, value can be transferred from one party to the transaction to another. I don’t understand! Transferring value?
Let me explain! When a buyer buys an invoice he must use Pokens and transfer those Pokens to the seller. That is transferring value.
But the seller cannot use Pokens in the real economy? The seller’s supplier will not accept Pokens for goods and services and employees will not want Pokens in lieu for their labour!
No problem, just withdraw your Pokens in equivalent amount of fiat. Viola, a crypto-currency used as a transfer of value to the real economy.
Can Anyone Say USDT Killer!
Since Pokens are pegged 1:1 to fiat, doesn’t that make it a stable currency when measure in fiat? Poken is a stablecoin. Are you seeing the big picture!
However liquidity will be an issue at the start and can only be considered a USDT killer when there is sufficient liquidity in the market.
How Does Poken Come Into Existence.
Fiat have been corrupted because governments around the world have switched on their printing presses and printed currencies in unlimited quantities. There is no problem with printing large amount of currencies, the problem arises when nothing backs these currencies to give them value?
It can also be said that it is the same for crypto-currencies. How does crypto-currencies derive their value? At the moment, value is derived from desirability, scarcity and expected uses in the future. There is no definite real use case to demonstrate the viability of crypto-currencies at the moment. Or is there!
Enter Populous, a lead contender?
Pokens cannot come into existence by mining or staking of the coin. Pokens must be minted into existence and the number that can be minted correspond to the amount in the Populous Liquidity Pool (LP). If the LP consists of GBP 1,000,000 (fiat) then only 1,000,000 GBPp (GBP Poken) will be minted. As the LP expands in size additional Pokens will minted to reflect the increase. Likewise, when the LP contracts, Pokens will be destroyed to reflect the reduction in size of the LP.
Hence, Pokens numbers are defined by the fiat amount in the LP. Theorectically there is no cap to the number of Pokens that can be minted. However the numbers to be minted is control by the size of the LP.
Poken, is thus backed by fiat! OK, I know, fiat is backed by nothing, I understand! But hey, what are the other cryptos backed by? They are just measured in fiat values which you can check on coinmarketcap.com.
When Does Poken Come into Existence.
For ease of reference, let us defined the Pokens in terms of when they come into existence: (a) LP Poken and (b) Profit Poken. The LP Poken come into existence when the LP is filled, see previous section for explanation. Read on to find out how Profit Pokens come into existence!
Profit Galore!
To mint Profit Pokens you will need to “earn” fiat! That’s right, “EARN !” Nothing is free in this world and your fingers will need to do some work to earn Profit Pokens.
It’s a simple process and it’s not hard work so do not worry about having to do work to earn your Profit Pokens. It will be worth it in the end and the best thing about earning Profit Pokens is that with Populous you have the opportunity to use Other People’s Money (OPM) to make money!
This is the process in which Profit Pokens come into existence:
- Securitise PPT to gain access to the LP and you will be loaned LP Pokens to purchase invoices. Your PPT will be held as collateral until the loan is paid back together with a small fee.
- Buy an invoice with your LP Pokens. For example, you buy an invoice with face value of GBP 10,000 for GBPp 9,000.
- The invoice seller withdraws GBP 9,000 and GBPp 9,000 will be destroyed. The invoice seller meets his short-term financial needs and you wait until the invoice seller makes repayment.
- When the invoice seller make payment the invoice seller will deposit GBP 10,000 and GBPp 10,000 will be minted.
- GBPp 9,000 plus a small fee of (say) GBPp 50 will be returned to the LP and the difference of GBPp 950 is your Profit Pokens.
Now that cannot be construed as hard work in anyway and you can get paid for doing just that every day!
However, since Populous is new, invoices for sale on the platform would probably be sparse in the beginning with volume only picking up when more invoice sellers are on-boarded. However, expect the unexpected!
The Invoice Discount Platform is also an auction marketplace where buyers compete with each other to win invoices, so be prepared to be out-bided. It’s a dog eat dog world out there!
With your newly minted Profit Poken you can do as you please. You can compound your profit by using your Profit Pokens to buy more invoices or cash out your Profit Pokens.
“Cashing Out” of Profit Pokens?
Populous have made it their mission to ensure there are multiple avenues to cash out into fiat or into other cryptos if required. By having more points of egress from the crypto-verse to the real world, Populous have the concerns of PPT holders in mind.
From the Platform
Since Pokens are a reflection of the size of the LP, every Poken is represented by a fiat currency. If you have 1000 Profit Pokens in your wallet then $1000 of the LP belongs to you. As such, if you want to cash out your Profit Poken in fiat you can withdraw the equivalent fiat amount to your bank account via the Platform.
On Exchanges
Since Pokens are ERC20 compatible and can be withdrawn from the Platform, they can also be withdrawn to exchanges. Once Pokens are listed on exchanges you can sell your Profit Pokens for ETH.
However, the awareness of Pokens will be very low at this early stage thus liquidity will be an issue. Nevertheless, the ability to “cash out” to another crypto is there.
If you have earned Profit Pokens from buying invoices, you can sell them on the exchanges. Populous will not be selling Pokens to exchanges so they will not be competing with PPT holders.
Spend Using a Debit Card
What is the point of earning Profit Pokens when you cannot spend them with ease. The Cashaa debit card which Populous have in mind will allow you to spend your Profit Poken with ease. Just send your Profit Poken to the designated Cashaa debit card crypto wallet and spend. However, there is no confirmed time table when this will option will be available.
Redeeming Gold
Since gold is part of the LP, it is possible that Pokens can be redeemed for gold and gold can be sold for fiat since liquidity in gold bullion market is very high. It will be possible to cash out your Profit Poken as gold and sell your gold for fiat with a bullion dealer. However, there is no confirmed detail how this feature will work and information is still scarce.
Who Will Want Pokens
The ability to cash out by selling Profit Pokens on exchanges is adding value to PPT holders even though liquidity at first will be low. In fact the liquidity of Profit Pokens would be very low as most invoice buyer would probably seek to compound their profit and use the Profit Pokens to buy more invoices.
Nevertheless, there will be two potential buyers of Profit Pokens: (a) Those seeking a safe haven in crypto-bear markets and (b) those seeking to utilise their idling fiat which otherwise would be sitting in their bank account earning pittance in interest. Even though liquidity may be an issue, there will still be a market there for those want this option.
Since fiat is not utilised on the platform Profit Pokens will allow you to access the Invoice Discounting Platform other than using PPT. However the sole use of Profit Pokens in the long run is not advantageous for the invoice buyer because Pokens do not benefit from the “Secret Sauce.” Furthermore, the ability to access the Platform solely with Profit Pokens will possibly cause the sale of the Profit Pokens to be sold with a high added premium.
In Conclusion
A Poken is a monitised crypto-currency and these Pokens form the heart of the LP. Since gold will also form a part of the LP and will be audited, the LP as a whole will probably also be audited. As a result this will ensure Pokens can be trusted.
As a stablecoin, those seeking stability in a bear market can also put their trust in the Profit Pokens. Knowing that one Profit Poken is backed by one unit of fiat currency will enable anyone holding Profit Pokens to redeem them if they choose.
The way Populous has structured the way Profit Pokens can be cashed out will only add value to PPT holder who generate Profit Pokens. How can you benefit from your earning if you are not able to cash out from the cyber-verse into the real world. At present Profit Pokens can only be used to buy invoices but the time is coming when Profit Pokens can also be spent using a debit card.
Like precious metal, fiat or any other items accepted by both parties, Pokens is used to transfer value from one party to another. The importance of the Poken being pegged to fiat and used to buy invoices cannot be overstated enough. It is the bridge between the crypto-verse and the real world.
Banks transfer “value” via numbers on a computer screen whilst Populous World transfers value through Pokens.
You say fiat! But in Populous’s World, I say Poken!
Other Populous Posts
My most recent Populous posts can be read by clicking the links below.
Populous – Here We Come!
https://steemit.com/populous/@marcusxman/populous-here-we-come
Populous – PXP, The Best Intel on the Market?
https://steemit.com/populous/@marcusxman/populous-pxp-the-best-intel-on-the-market
Populous – History Made!
https://steemit.com/populous/@marcusxman/populous-history-made
Populous – Now is the Time to Plan!
https://steemit.com/populous/@marcusxman/populous-now-is-the-time-to-plan
Populous – Light at the End of the Tunnel!
https://steemit.com/populous/@marcusxman/populous-light-at-the-end-of-the-tunnel
A number of issues raised in the article was covered in preceding Populous articles which you can find [here[(https://steemit.com/@marcusxman). Many of these articles were written a long time ago and Populous being a start-up and an industry trailblazer pioneering a new way of doing things will mean that some of the assumptions made have changed. Nevertheless, the principle outlined in the articles still applies. So read those articles to help you formulate questions that you can ask to help you understand
Should you have any questions concerning Populous you can ask Populous through Slack, Bitcointalk forum, Populous Official Telegram or Twitter Account for answers and clarifications.
However, do bear in mind that Populous are not financial advisers and cannot respond to questions that are of a financial nature. The onus is on you to make that determination and what it means for you as a PPT holder.
This is NOT Financial Advice
The contents in this article are for educational purpose only and should not be construed as financial advice. As usual do not invest more than you can afford to lose as these investments can go to zero and always do your own due diligence. If you need financial advice then speak to a licensed financial advisor.
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Live Long and Prosper
I wrote this article myself and it expresses my own opinions. Computer literacy is crucial in this day and age, and just because someone tells you it is good, it does not mean that it is good for you.