Two-Token System Fueling the Streaming Economy
Getting cryptocurrencies adopted at scale is not a simple task to resolve. Here at POP Network, we do our best to make cryptocurrencies an integral part of end-users daily lives. For that, we introduce 2 key cryptocurrencies POP and LIT serving as economic incentives for the participants of our network to increase the level of their engagement and to bring the network to long-term prosperity and health.
In this article, we are going to give more details about our token structure, their utility and key values.
Dual token structure: POP & LIT
The POP Network is fueled by 2 key tokens. They carry different functions, but their goal is the same.
Both tokens serve to increase the mass adoption of our platform and make it dominate the streaming media economy.
Being a native utility token of the network, POP bears the same features as any other utility tokens aiming to accomplish the following functions:
- Staking. Users may stake the POP token on their wallets and gain regular rewards for providing their resources to the network.
- Governance. POP holders may participate in the governance processes by voting for new features and improvements.
The Legitimate Interchange Token or shortly LIT is a totally different story. It represents a stable operational unit for internal transactions. Unlike POP, it has a stable value and doesn’t depend on the market’s fluctuations. One of the most typical use cases for LIT is to get a reward for creating and sharing content with the growth of its popularity. Earned LIT can be later converted into POP to stake in the system further.
Why do we need 2 tokens?
While the differences between these two tokens are obvious, it’s still worth giving a detailed explanation of why we have decided to introduce such a dual system. Basically, there are 2 key reasons for that.
#1. Different use cases
First, POP and LIT serve two absolutely different purposes.
While users may only get access to some features of the network by staking POP, that will lead to a natural decrease in circulating supply. The more users hold tokens in the stake, the fewer tokens there are in use. LIT is needed to improve the adoption of the platform as to exchange value at high frequency and volume, users would need some stable unit.
These are 2 absolutely different scenarios that are impossible to combine in a single token.
#2. Improve token velocity
Second, rewards for staking POP incentivize users to hold tokens for a long period of time.
This decreases the liquidity which is essential for the system to function properly. By switching the function of value exchange to the second token LIT, we reduce this burden from the first token and further complement the adoption of our system.
Different tasks result in different features which in turn can only be achieved by different tokens. While the POP token can be purchased on ProBit Exchange, LITs can only be earned on the platform itself.
What role do you prefer to take on yourself in supporting our project? Are you a holder or an active user? Join our telegram chat to discuss!