Product Token Coin

Product Token Coin (PTC) System: Design and Explanation

1. Nature and Positioning of PTC

The Product Token Coin (PTC) is a virtual token issued by the platform designed to reward and provide benefits for specific activities within the platform. Its core characteristics include:

  • Non-Monetary: PTC is a virtual token and cannot be converted into any legal tender currency. Its primary use is for engaging in platform activities, making purchases, and applying for various user benefits within the platform.
  • User Exclusive: PTC tokens are for the sole use of the user who earned them and cannot be transferred, traded, or gifted to other users.
  • Rights Carrier: PTC serves as a rights token that provides users with specific services and benefits, such as purchases, participation in platform activities, and a self-funded buyback option for user token rights. It does not involve any form of investment or financial trading.
  • Transparent Record: All issuance, release, and usage records of PTC tokens will be stored in the platform’s central database, allowing users to access and query their token status at any time.

2. Token Earning and Release Mechanism

Ways to Earn PTC Tokens:

  1. Support Projects: When users contribute cash to support crowdfunding projects on the platform, they will receive PTC tokens in a locked state, based on a predetermined ratio (e.g., 1:1.2). Token issuance is limited to project support actions only.
  2. Community Contributions: Users can earn small rewards in PTC for activities such as content creation, providing project feedback, and inviting new users.
  3. Membership Benefits: Premium members will receive periodic token allowances as part of their membership benefits.

Token Release Models:

  • Fixed-Term Release: After supporting a project, tokens will be locked until the promised delivery date or a designated date, at which point they will be released all at once as usable tokens.
  • Milestone-Based Gradual Release: Tokens will be released in batches according to the project’s progress, such as “design completed,” “prototype approved,” or “mass production started.”
  • Hybrid Model: Tokens will be released based on both time and project milestones.

3. Token Value and Application Scenarios

Token Value Basis:

The basic value of PTC tokens is set as follows: 10 PTC = 1 USD. This value is used for internal accounting and for specific token exchanges and platform services. PTC tokens do not have any investment properties and are not considered securities, currency, or financial assets.

Four Main Application Scenarios:

  1. Platform Purchases: Users can redeem PTC tokens for completed crowdfunding products or other items from the platform’s own or partner stores, with some items offering exclusive discounts for token holders.
  2. Redeeming Platform Services: Users can use tokens to redeem specific platform services or privileges, such as upgrading to a premium membership or participating in platform events.
  3. Project Support: Users can use available PTC tokens to support new crowdfunding projects and enjoy leverage incentives (e.g., using 100 PTC tokens to support a project valued at 120 USD). Project support is limited to the project itself and does not involve any investment returns or profits.
  4. Token Settlement: Users can apply to convert available PTC tokens into cash based on the basic value (1 PTC = 0.1 USD), subject to platform approval, and the settlement will be processed through the original payment method.

4. User Incentive Mechanism

The platform offers three incentive pathways, each with different values and rewards, as follows:

  1. High-Value Pathway (Project Support)
    • Value: 1 PTC ≈ 1.2 USD
    • Description: Users can earn higher returns by supporting new projects. This is the platform’s primary recommended pathway, which maximizes user earnings and helps grow the platform ecosystem.
  2. Medium-Value Pathway (Platform Purchases)
    • Value: 1 PTC ≈ 1 USD
    • Description: Users can spend tokens on the platform to purchase products, enjoying discounts. This pathway encourages product circulation and user participation.
  3. Basic-Value Pathway (Token Settlement)
    • Value: 1 PTC = 0.1 USD
    • Description: Users can convert their tokens into cash, offering a final safeguard for user rights, ensuring that users can still redeem their tokens when they wish to exit the platform.

Disclaimer

PTC tokens hold value solely for use within the platform. These tokens represent rights and benefits and are not legal tender. They cannot be directly exchanged for legal currency.

Users should be aware that the use of the token system is based on the various application scenarios within the platform. The platform is not responsible for any fluctuations in token value.