Tokens are digital assets built on top of a blockchain or other distributed ledger technology with various potential case utilities. They are becoming increasingly popular due to their flexibility, security, and ability to operate independently of centralized financial systems.
In this article, we will explore some of the most prominent utilities and how Nova sticks to some of them, following the blockchain’s token principles
1. Store of Value
Tokens can serve as a store of value, similar to gold or other precious metals. This utility is useful for users who wish to preserve their wealth or hedge against inflation. For example, Tether (USDT) is a popular token that is pegged to the value of the US dollar, allowing users to store their wealth in a stable asset while still enjoying the benefits of blockchain technology.
With the introduction of the CBDC (Centralized Bank Digital Currencies), the future of stablecoins is threatened by huge world institutions.
Some intellectual claims that in the medium term, Bitcoin will remain the real and unique decentralized option, and here is why we decided to link our value proposal to it.
By rewarding players and investors exclusively in Bitcoin, or $NMV Token, that can be easily exchanged to it, we aim to peg or store value to the mother cryptocurrency.
2. Medium of Exchange
Tokens can also function as a medium of exchange, enabling users to purchase goods and services. This utility is useful for platforms that wish to facilitate transactions in a decentralized and secure manner. For example, Basic Attention Token (BAT) is used within the Brave browser to reward users for viewing ads and to compensate content creators.
$NMV token will enable not only the RPG in-game system but also the marketplace, tournaments, sandbox and stacking. Together will give investors several options, levelling the risk up to your preferences, always prioritising your liquidity above every other aspect.
3. Access to Services or Products
Tokens can grant access to services or products, creating a sense of exclusivity and incentivizing users to acquire and hold the token. For example, Binance Coin (BNB) can be used to pay trading fees on the Binance exchange and provides discounts for users who hold a certain amount of the token.
NFTs will be in the final version and also a requirement to play Minersia X32 and other games of The Miningverse ecosystem, but $NMV will have a tier of holders that grants early access to new game features and titles of our ecosystem.
Tokens can be used to govern decentralized systems or communities by giving holders voting rights on important decisions. This utility is useful for platforms that prioritize community involvement and decision-making. For example, MakerDAO uses the MKR token to enable holders to vote on proposals related to the management of the Dai stablecoin.
In The Miningverse, rewards sharing and new proposals will be submitted for voting to the community of holders, entirely deciding what and how will happen in our ecosystem.
Tokens can incentivize certain behaviours or actions by rewarding users with tokens for contributing to the network. This utility is useful for platforms that require user participation to function effectively. For example, Filecoin rewards users who contribute computing power to the network with FIL tokens, which can then be used to purchase storage space on the network.
Staking and royalties of NFT and regular rewards will be provided to users, even if those tokens are not locked in any of our pools.
6. Asset Backing
Tokens can be backed by assets such as commodities, real estate, or other financial instruments, providing a level of stability and security to the token. This utility is useful for users who wish to invest in a particular asset without physically holding it. For example, the PAX Gold token is backed by physical gold, allowing users to invest in gold without needing storage or handling.
In our case, every single holder is welcome to visit us whenever they want to our mining plant in the Free Industrial Zone of Tbilisi and we will provide you with a detailed tour of our facilities to see how the hydraulic energy is powering our whole ecosystem and o, backing the value of $NMV token.
Tokens can be used as a means of fundraising for new projects or startups, enabling investors to purchase tokens in exchange for funding. This utility is useful for startups and projects that require capital but wish to avoid traditional fundraising channels. For example, EOS raised over $4 billion through an initial coin offering (ICO) to fund the development of its blockchain platform.
In this regard, the seed/foundation phase of the project took this role, and the remaining amounts we will get from our hosting/mining services will be used to expand and increase the mining activity we already develop.
You should apply this shortlist to your projects if you are our competitor or an individual interested in building his/her own project.
Tokens have numerous potential case utilities, not to speak about cases of application, that exponentially increase the possibilities of Web3 to improve people’s lives worldwide.
In Nova, as well as in most of the projects of Web3, we opted for a mix of all the NFT applications, so $NMV will gather each of the characteristics exposed, as it is expected, being governance the most important one in our opinion, giving users plenty of control of where our project is going and the proportions of the reward share.
Keen to learn more?
Read the Nova Miningverse Whitepaper