Very shortly we reach another milestone – that being the point when Futereum (FUTR/FUTX) value mines more than 20,000 FUTR in total. There is substantial reason to be optimistic about such a milestone being achieved, despite the fact that it represents just 2% of the current level’s total supply.
The reason to be optimistic is that simply put, the token family as a value model can never not have value henceforth, as long as the price of Ether increases. Think about that for a second – as long as the Ether price increases, the token family can only gain substantially in value.
This is because of the way in which the token family is interlinked to create a new type of derivative utility which translates into interlocking value which references the original seed token (in this case that is ETH):
Almost no one in crypto disputes the long-term viability of Ether as a digital asset. The point at which the self-destruct nature of Ethereum’s proof-of-work algorithm to make it infinitesimally difficult to mine Ether profitably via standard mining equipment is likely to dawn on the currency is round about any day now. Meanwhile, Casper, Vitalik Buterin’s new proof-of-stake algorithm, if successful (which is odds-on), is likely to substantially boost the ETH price by the year-end. As a result, the likelihood of the Ether market cap over-shooting the Bitcoin one is high at some point during 2018.
With this is mind, there are two things that can happen from here on with respect to the token family model I first designed around this point last year. The first is that no one in the world notices that FUTR and FUTX are loaded up with Ether. Although unlikely, that is a possibility that ought to be considered. In such an instance, FUTR would offer the most tremendous value to purchasers who manage to snap up cheap yesteryear bargains at Futerex Exchange.
Butif this was the case then something would have to happen – the FUTR and FUTX holders would have necessarily forgotten all about the tokens they purchased via Futereum smart contracts, and hence, would be highly unlikely to swap in such an instance. That means that 20% of the roll-over Ether in the Futereum smart contracts would be paid out as a fee at the point of the swap. For FUTR, that swap is a maximum of 37 months away, while for FUTX, that swap is a maximum of 12 months down the line.
Everey time the fees are paid (what is called “feed” within the token family context) a portion of them is paid into the parent smart contract which MNY, the product that COE value mines via the embryo smart contract, is able to extract. In other words, given an Ether price rise this year of any substantial extent, it is literally impossible – even in the worst case scenario – for the forthcoming COE token to not have substantial value embedded inside it by virtue of the roll-over fee percentage that is contractually written into the Futereum child smart contracts.
Of course, the likelihood is that given any real rise in the Ether price, a lot of that would shake off immediately onto the trading value and trading volumes on exchange of FUTR and FUTX. This would have the net effect of producing a substantial increase in mining of the Futereum smart contracts, with the result being that, once again, the prices of COE and MNY would benefit enormously.
What is so interesting is that what it seems was especially smart about the development of the token family model turned out in the end to have nothing to do with the process of value creation per se. At the end of the day, we didn’t really create any novel value in and of itself at all, in terms of offering some new initial coin offering (ICO) product to market. (This is what I glimpsed late in July 2017, thereby prompting me to cancel the ICO – specifically, we still had a bit of work left to do.) Rather, what we ended up doing was harnessing the value in an existing crypto with a phenomenal value and utility proposition, the likes of which I would never in a million years have been smart enough to develop: namely, that of the Ethereum Blockchain.
Of course there are many other tokens we can synch into the token family model – there is EOS, ICX, NEO and others. But the bulk of the early value is likely to be because of one innovation specifically – the Ethereum Blockchain. To that end everyone who will shortly receive COE distributions as a result of swapping in their Waves-based tokens late last year will likely forever owe Vitalik Buterin a huge vote of thanks.
To those who question how value can be so easily translated from one innovation down a line of subsequently-issued tokens without any real utility other than the value of someone else’s brilliant idea, I can only reply in meagre defence that this is the essence of financial engineering; taking something that someone somewhere who’s really smart has built, and making many times the money out of it. It’s not especially brilliant, but it is certainly profitable.