How to Tokenize Your Idea with BTCBAM’s Decentralized Exchange

We would like to guide you for your token projects that you will list within the BTCBAM DEX platform. In this series of articles, we will try to convey to you the points that need attention for a token project.

• What is a Token Standart?
• Qualification of a Token
• Token Lifecycle

What is a Token Standart?

A Token Standart describes the properties of a token, the nature of the users and services that interact with that token and the economic characteristics of such interactions, in fact represents an entire economic and technological ecosystem. A Token Standart also defines the purpose of the token, its usefulness and the mode of creation, distribution and possible destruction.

The Token Standart is characterized by two main aspects:

· Attributes: it assists the token platform and configuration;

· Token Flow: the interactions that the Token performs with the Token Holder, the Exchange and the substrate, and which constitute its economy.

Qualification of a Token

In this section we report the most relevant attributes for the definition of a token and its operating model:

· substrate: the decentralized platform that hosts the token (eg BtcBam’s Dex, Bitcoin, Ethereum);

· system: eventual management system of the token inside the substrate (eg BRC20, ERC20, ERC721), also determine aspects such as:

· fungibility: it defines the equivalence or not of the individual tokens and therefore the possibility of exchanging parity of volume at the same price, this criterion is connected to the system;

· transferability: the ability to transfer tokens from one address to another without authorization;

· role: the functional role of the token. Functional roles can be active or passive;

· passive token: any token that represents a value can be a currency (Bitcoin), a utility (Ethereum) or a security;

· active token: tokens that activate features such as access to a smart property or specific service features;

· payload: a token can be associated with an external physical or digital asset with a predefined value, for example fiat currency, precious metals, raw materials;

· supply: it can be limited or unlimited, it determines the monetary policy of the token and depends on the Business Model that is being implemented, specifies how many tokens will be generated and according to which criterion, through an algorithm defined in the smart contract or through the governance of the token holder;

· divisibility: represents the divisibility of the token, when applicable, ie the number of digits after the comma that must be supported (ex: 6 decimals), particularly important that it is high for limited supply tokens;

· source: ie the availability of the Smart Contract source code that regulates the token. It can be open or closed, although there are still projects with closed source tokens, we believe that this practice contrasts with the concepts of auditability and trustless at the base of a reliable economy token and therefore is absolutely to be avoided.

Token Lifecycle

The token lifecycle, usually with the following models:

· straight line: the token is created, assigned to the recipient, used and destroyed;

· chip model: it is used with an exchange service for conversion to other tokens / fiat and vice versa;

· circular: it is used as a currency.