Retail Utility for the Swarm Token: Proposals Discussion


#1

Hello, I am starting this topic although being a complex one, this is just to initiate a discussion and to hear potential ideas as to how we could achieve additional utility for retail to simply Hold and Use the Swarm token.

My premise:

Imagine even only 10.000 holders choosing to hold 5000 SWM each due to some utility specifically aimed at them.

It could be a debit card along the lines of Crypto.com and-or something else.

That would be 50 millions (50%) of the supply off the market by by catering to just a few retail holders.

I think this is very important, almost essential to get retail involvement and acquire a long-term holding userbase, for reasons such as the examples below:

  • Taking SWM off the market.
  • Word of mouth marketing.
  • Retail utility, adding an important layer to the project.
  • Thickening the orderbooks to avoid price dumps when some random sell occurs.
  • Allow the Market Development Fund to sell Swarm tokens and transfer some of them to ETH + BTC without crushing the price.
  • Allow Masternode holders to dedicate a % of their earnings to add to the MDF, again without affecting the price when Swarm tokens need to be moved into ETH + BTC. I think the MDF should have SWM, ETH and BTC reserves, so it only makes sense to thicken up the orderbook by giving retail a reason to hold.

While we can discuss the MDF on different proposals, the above are some reasons why we should consider expanding a retail userbase with some strong idea.

The first two potential cases coming to mind to me are:

1- A debit card. Let’s take a look: https://crypto.com/en/cards.html - They have a banking partner to provide users with an IBAN and the physical cards. (Of course they are also listed on high-volume exchanges, some of the world’s top.)

We’d have to figure out something appropriate for our case.

2- Discounts on fees from trading STOs. For this we’d need to cut in exchanges in some way.

3- BONUS % when investing in an STO on the Swarm platform, with better % based upon how many tokens are held in a wallet and for how long time they have been held. Again this would require some cooperation from the STOs launching on Swarm, so I am unsure how it could be approached.

4- Developing a Swarm APP where some utility for the token could be thought over. Suggestions? What are the limitations here? Can the APP be used for directly trading utility tokens and STOs? Maybe not, as we aren’t opening an exchange.
What benefits could retail have to buy and deposit SWM tokens to our APP?

Ok. This is just to start, it doesn’t look easy but let’s discuss keeping in mind:

How do we get retail to HOLD and USE the Swarm token?

It would help if team members could chip in to let us understand the limitations, both technical and legal, for what we are discussing here please, still with the retail utility token in mind, since it is somehow our weak spot. Thank you very much.

(To keep this discussion fully private I’d be willing to move it to a private telegram group or similar. Opinions?)


#2

If there is any other utility for the average user to hold Swarm in what will be out phone APP (with a wallet), we should explore what the app’s purposes could be:

a first step would be thinking about what to build into this app that would give the utility we seek, apart from a general wallet (which I guess could just integrate from others I suppose, via a partnership.)

The debit card is an option by itself, however it’ll have to be linked to the app anyway for basic interaction. That is in itself a way tokens could be layered to unlock services/discounts/promotions/ideas…

From the app itself, if we could discuss what the team’s concept would be, as Sam told me it was being explored, there could be stuff relating to Swarm’s STOs for example. In this scenario, one would need to think of how the token could be used/layered in for extras, separate from the debit card idea.

Looking at the future, could STOs (on Swarm and outside of it) pay a fee to be promoted inside Swarm’s App to thousands of Investor Pass’s registrants? I assume anybody can use the IP, even if they aren’t launching an SRC20.

If they have a pilot for the app or a debit card already in mind, would be good to find out what cooperation from the community the team has in mind.

We could look at it the other way around and ask ourselves: in which instances will the general public interact with Swarm’s infrastructure, and consider needing a token?

The crypto-dot-com app/card is very complex and way beyond our potential needs, which should still focus on the ST environment and keep the soul of what Swarm is all about.

We could think of using/locking the token in-app, to access some services anybody can have as well as VIP services, even without considering a debit card for the moment.

Some sort of Investor App to match the Investor Pass, but with added, layered VIP options. This would give us immediate reach into anybody signing up to the investor pass, which could then see a benefit in holding some SWM in our app and benefit from the extra services on offer, some could be even paid directly in Swarm, others as layered unlocks by holding Swarm tokens.

What do you think of this?


#3

WOW! Yes it is a rather complex one…lol.

You have a lot of ideas as to how this retail contribution fund could work for the project as a whole. Some I get others takes a little thought processing Alex.

However, I like the idea of a retail fund or any kind of fund that will act under our governance model in order to promote SWARM.

My two cents. Because there are and could be a lot of ideas for the use of the fund, and you’ve asked the team to comment, at this early stage I would rather the team spend their time for now on working on and getting out the self service product before having to consider ideas for anything else. But that’s for the Team to decide of course.

After the self service product is launched I hope the team will have more time to advise us on their ideas for the fund.

What I would say is I like the concept in principle. Obviously a percentage of rewards to put into the fund will need to be agreed, I think you mentioned 12.5% of rewards per month or at source.
Also, we would need to know how easy would it be for the team to implement in deducting that % at source.

How difficult would it be to set up some kind of escrow contract to protect and hold these funds, or will someone be trusted with the purse strings? Not sure the latter would be acceptable to the community as a whole.

I think when the team are freed up a bit more and are not so pushed to get the self service product out, they can comment on my thoughts too. That doesn’t prevent other community members from contributing to your ideas too in the meantime of course. Once there’s more comments from the community as a whole and therefore some meat for the team to get their teeth into, at that point hopefully you can bring this or a revised proposal through to submit for a vote! :grin:

You’ve put a lot of thought and time into this Alex, it is very much appreciated. Thank you.

Steve


#4

So, you are kind of suggesting a SWARM points/rewards system for retail possibly via an app, if, I’m understanding it right. I think this would be/is a brilliant idea!!!

I wonder if whole SWM tokens will be too much to reward and whether we’ll need a kind of sub swarm token that represents points earned and when so many are reached then one whole token can be given. This will all need working out too relating to token price. I think a points system, say for example 10 baby swm token points for each $1 spent on a said credit card = 1 SWM might be a good idea. This way it establishes a structure for retail rewards earned per dollar/pound etc… spent. What does the community think?

Steve


#5

Alex,

I’ve just read through your treasury spread sheet, and in principle it all looks good to me! I kind of like the fixed 12.5% idea. And I Also think we ought to have an initial two or three years trial period then re-vote for continuation of the treasury to the full 5 year term, So, we can see how retail idea’s etc are progressing. I know we can suggest a vote at any time but having it in the agreement from the outset would be better I believe.

Steve


#6

hai alex very intresting proposal , for better liquidity i think we need good exchange(indodax, upbitetc) but it is not looking possible , but your proposal for thickening orders from mdf will save some , and if it is happened we can add another utility stos fund can be raised with swarm will be solid, main factor is liquidity which will not attract investor if he not do deep research on swarm