TokenBnk: The World’s First Savings Account Based on Ethereum
A New Ethereum-Based Banking System
The world is slowly but surely moving towards the blockchain. In the future, it will be hard to escape the use of blockchain tokens. However, for any economy to work, people should be able to store their value while making something out of it. That is where TokenBnk comes in; it is the first global savings account for blockchain tokens.
Holding onto fiat for long periods while it earns no profit makes no sense. The same logic will apply to cryptocoins. As the price of cryptocurrency starts to stabilize, simply holding on to them will not make any sense. You will need to have the ability to earn a passive income from your value. To use TokenBnk, users will create and deploy a Saving Contract.
How Is TokenBnk Powered?
Withdrawal fees will power the new method of savings. When a user withdraws and pays the fees, the value is spread throughout the network. It will work in a similar manner to what is known as Dividend Reinvestment Plans. This new platform is going to be one of the lead ways by which value is stored in the future.
The Problems That TokenBnk Will Solve
Today, token holders do not have a secure method by which they can store their crypto assets. This is especially so when they are looking for a “set and forget” option, as is common with legacy banking. TokenBnk is going to be a savings account for both Ether and tokens based on the RC-20 standard. To earn, users simply need to visit TokenBnk. They will then have to create a Savings Contract, which they deploy on the Ethereum blockchain. Additionally, they will have to deposit their tokens inside the contract. Whenever someone makes a withdrawal, he or she will earn something.
How the Withdrawal Fee Is Calculated
TokenBnk is run on the withdrawal fee, which is denominated in TBK, the platform’s native token. This fee is equal to the real-time TBK exchange rate, calculated at 2.5% of the value of the deposit. The fee is only affected by one variable, which is the market value of TBK at any one time. For now, it will not be possible to make partial withdrawals. However, as the site matures, the developers will explore an even more complex algorithm in order to do so.
More About TBK
TBK is mainly intended to be a utility token for paying the withdrawal fee. Once TokenBnk gains widespread adoption, TBK will have value, which is needed in order to gain access. Thus, the utility of TBK represents a unique use case. Based on the utility of this token and market fear, it is conceivable that demand for this token will grow when catastrophic market events occur.
TokenBnk is intended to be an economic experiment of the crypto economy. If it succeeds, more followers will likely start to implement similar systems. Its design offers participants an incentive to take part in the network from the initial stage and remain in perpetuity.
What do you think about the TokenBnk economic experiment? Will it succeed? Leave us your thoughts in the comments section below.