FAQ - City/Industry Tokens

What purpose do city and industry tokens serve in the Unit Network ecosystem?

City and Industry Tokens provide a decentralized economic infrastructure, fostering local and global collaboration, empowerment, and value creation. They serve as catalysts for sustainable growth, community engagement, and financial inclusion.

City and industry tokens transform shared communities into dynamic ecosystems, leveraging diversified digital assets to foster ownership and engagement. This innovative approach utilizes technology to organize and unite like-minded individuals within cities and industries, providing unprecedented opportunities for collaboration and shared prosperity.

What is the process for issuing tokens related to cities and industries?

City and industry tokens are capped at a maximum supply of 100 million, and they are released from their respective banks at ascending price levels.

This occurs when the TOKEN-USDU exchange price attains the next predetermined bank price, making the token appealing for purchase.

What factors contribute to determining the valuation of city and industry tokens? Can you elaborate on the criteria and considerations that influence the perceived value of these tokens in the market?

City and industry token valuation employs a dual strategy, incorporating both a 'push' and 'pull' mechanism.

The controlled release of limited supply during each issuance is strategically directed towards acquiring project, personal, or business tokens within the community.

These tokens are then safeguarded in dedicated banks and treasuries, fostering a gradual increase in the token's price through successive sale price rounds, while concurrently introducing additional tokens to the market.

Enhanced question style:

When purchasing a city or industry token, what specific value, benefits, or ownership rights does the token confer?

When you invest in a city or industry token, think of it as a unique form of reverse ETF – a direct stake in the future token economy of that specific city or industry. This isn't through conventional means like the mayor's office or an exchange-traded fund comprising large publicly traded stocks; instead, you're directly owning a share in the 'shared bank account' represented by the token community, facilitated by Unit's technology.

This happens in two key ways:

1. Community members and businesses actively participate, essentially gaining ownership in the ecosystem.

2. Businesses and projects utilize the token as a reserve asset, supported by exchange fees and the underlying assets it holds.

For instance, if 1 million musicians invest in the MUSIC token, it functions akin to a shared fund or savings account within the limited 100 million supply. This collective participation tends to drive the token's price and value upward.

Could you provide an explanation of the concept of a 'reverse-ETF'? Specifically, how does it differ from a traditional ETF, and what characteristics define this unique investment approach?"

An ETF (exchange-traded fund) manages assets for its shareholders. In the case of a token, which functions as a reverse-ETF, it is itself invested in various token banks and treasuries. Sequestering this limited-supply reverse ETF/token in project token treasuries elevates its price, providing a streamlined way to invest in that class of assets.

Trading fees and token sales from these banks contribute to raising the floor price, consequently increasing the overall value of the token.

Regarding the tokenization of industries, Unit primarily focuses on industries with substantial transaction activities and population sizes. All tokens within an industry or city are interchangeable.

For instance, if a musician in New York creates a new token, it can eventually become part of the NY city community page. The platform allows users to search for tokens based on various criteria such as community, price/treasury, growth rate, timed upcoming sales rounds, and other relevant metrics.