THE ROOTS TOKEN
DESIGNED TO CREATE REDUCED SUPPLY AND INCREASING DEMAND
ROOTS tokens align the interests of capital with society’s most vulnerable
ROOTS tokens create an economic logic that aligns the interests of those who possess capital and those who are trying to escape poverty. RootProject creates a virtuous circle by creating an ongoing demand mechanism for ROOTS tokens via on the ground, crowd-funded projects that produce a public good. Ownership of ROOTS is encouraged by providing economic opportunities to token purchasers as well as low skilled workers. When the currency appreciates, it creates value for everyone in the system because ROOTS tokens are held in a pension-like fund for those who complete RootProject activities while those who have purchased tokens see their value grow due to reduced supply and continued demand.
The RootProject crowdfunding platform traps value in the ecosystem while also providing participants with a common forum to involve the public and one another, while the token model allows the platform to dramatically out price-compete traditional crowdfunding platforms.
ROOTS tokens are built for cointegration around easy-to-discern supply and demand data which will be made public in real time. This allows for transparency and deep understanding on the part of anyone who holds a token – regardless of how they came to possess the token.
Because currency demand will be partially a function of crowdfunding campaigns that can be assessed in real time, and because supply is strictly limited to a hard cap, this predictability should, theoretically, produce price behavior desirable for token owners generally, especially those with larger portfolios.
ROOTS is a currency designed to enjoy demand growth and liquid supply reduction through three distinct, core innovations – they are:
A Laborless Crowdfunding Platform:
A significant portion of each funded project’s donations go to the removal of coins from the market, through three main channels: (1) 10% of funds raised, upon the funding threshold being reached, goes directly to token purchases, instead of traditional crowdfunding fees; (2) via the portion of labor costs that goes to the “pension-like” fund; (3) large donor projects that have an extra fee that goes to purchasing coins on the open market and burning that supply.
The “Pension-like” Fund:
By creating an institution that takes a large portion of compensation from every project and locks it away in a medium term “pension fund” whose sole holding is ROOTS tokens, RootProject both maximizes its social good and generates a high, steady rate of liquid token supply reduction.
Currency Innovation as a Direct Social Good:
The economic well-being of “pension” holders – society’s most vulnerable – is directly harmed by any reduction in currency value. This – from a moral, public relations and strategic perspective – puts a break on any action to water down currency value that is, (a) more powerful than any policy promise could be and (b) an incentive structure that strengthens over time.