One of the fringe benefits of the COVID-19 pandemic has been the mainstream adoption of remote work. Teams that were beholden to board meetings, scrums, and conference rooms now have the ability to work in a more decentralized manner. This is par for the course with blockchain companies, as their products and services lend themselves to a decentralized work structure. PlasmaPay has taken this time to put together a number of substantial partnerships in the cryptocurrency space while also creating a more fair token distribution mechanism.
Partnerships
Perhaps the most substantial partnership of late is the Paid Network, a borderless legal toolkit designed for a decentralized world. In addition to offering additional fiat on/off ramps, the Paid Network lets users “custom create and execute trustless agreements between all users of their ecosystem through PAID Network’s SMART Agreement and Escrow functionality.” This is where the “business” aspect of the Paid Network shines. By offering Escrow functionality through smart contracts, Paid Network is able to eliminate the middle man in a multitude of financial transactions. Real estate, art sales, business holdings, and more often require contracting an escrow company to handle these expensive and important proceedings.
Token Distribution
As partners like Paid Network join the PlasmaPay family, the demand for PlasmaPay tokens (PPAY) is becoming more apparent. After the successful seed round and private sales, the team has a conundrum. Most tokens are released all at once on a specific day, on a specific exchange.
But first some basics on the Law of Supply and Demand. Long a foundation for economics lessons, the relationship between supply and demand is well documented and understood in markets. As Investopedia explains, “When an item is scarce, but many people want it, the price of that item will rise.”
Previous project launches will release all tokens at once, creating an over-supply in the market. Early buyers are looking for a quick flip on their investment, causing enormous sell pressure and driving down the price.
Even established projects can suffer the same fate, as bag holders run to a new exchange with higher liquidity. Alternatively, they are rushing to sell their tokens at a higher price than other exchanges.
By drawing out the distribution, PlasmaPay is reducing the sell pressure while still allowing newcomers an opportunity to get into the ecosystem.
On the release date, PPAY tokens will be distributed automatically to seed in private investors. Following that, tokens will be rolled out in blocks, to make sure a supply glut does not tank the market. Users can redeem their tokens through MetaMask via the PlasmaPay DeFi Dashboard.
One of the hallmarks of a successful tech company is the ability to pivot when conditions call for it. Adapting and improving on the current flawed token release model is simply the latest example of PlasmaPay observing market conditions and taking appropriate action.
Twitter – https://twitter.com/Plasma_Pay
Website – https://plasmapay.com/
Medium – https://medium.com/plasmapay
Carlos Park
The Daily Chain
*Disclaimer – PlasmaPay is our Media Partner, and this content is made possible with their support. The above article does not represent financial, investment, or trading advice, and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.
