Tokens
In this guide, we'll teach you how to create and manage a cryptocurrency (token) on a public blockchain protocol.
What are these tokens and what are they for?
The most used examples in this ecosystem are the ERC20 standard Tokens.
There are several use cases for creating these tokens: Equity, Utility, Stable coin, and many others.
Tokens can be created for use within an ecosystem, can be sold in secondary markets, and much more.
And how do I apply this to my business?
Creating a currency can have several different use cases.
Here is a list of the most used:
Currency or credits for internal use in an ecosystem or application
Rewards programs for users
Creation of coins for DeFi or Exchanges
Representation of asset-backed currencies or fiat currencies
Use your creativity!
It is important to note that these tokens (currencies), as they exist in the blockchain, are likely to be traded in secondary markets by their custodian holders. And that's not a bad thing!
What steps should I follow to have my asset available on the blockchain?
First of all, you need to plan and define very well the entire ecosystem that this asset will be inserted. It’s not recommended just creating a currency and playing in the market because the chances of something going wrong are huge.
Define your use case and business rules
Define the blockchain protocol that will be used, according to your need. Check performance, scalability, market cap, traded volumes and other infos!
Set the Tokenomics of your asset > stable coin? total supply? This is very important! Check the jurisdiction that you're inserted.
Define the way you want to present your asset to the market - Name, Symbol and Decimals
Define the wallets that will manage this asset. Any of your users will be able to have a wallet? Your business rules!
Publish this token on a Testnet and do as much testing as you can (don’t forget to use the admin wallet)
After testing the token, the ecosystem that involves the token and security factors, deploy the asset on the protocol Mainnet. This will cost you some % fees.
Your currency is available for official use!
Information and Functionalities of ERC20 Tokens:
Your Token must have:
Name - the complete way that holders, users and whoever sees your token on blockchain;
Symbol - the way that you want your token to be presented - examples: MANA, SOl, ETH, DOGE. Make an impact!
Decimals - this is extremely important according to the use case you chose. Beware - Ethereum based protocols allow up to 18 decimal places (fractions). But there are specific details for defining decimals - example Stable Coins.
If you need some help to define your Tokens Structure, call us!
Managing your Token:
Once published on Testnet or Mainnet, your token can be managed through the following functions and informations:
Total Supply - allows you to see the total amount of your token in the market.
Balance Of - allows you to see how much a wallet holds of your token.
Mint - creates amount tokens and assigns them to account, increasing the total supply. It's like "printing money".
Burn - destroys amount tokens from account, reducing the total supply.
Transfer - Emitted when value tokens are moved from one account (from) to another (to).
There are many other complementary functionality possible in an ERC20 token. For more information check the OpenZeppelin docs https://docs.openzeppelin.com/contracts/2.x/erc20
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