anyone can use Bancor Protocol without needing the coin.
Why would anyone buys the coin?
Does it give any additional incentive for anyone to use Bancor coin if he intends to use the Bancor Protocol?
personally, i don't find their argument especially strong -of using Bancor coin as reserve, expecting it to rise, which naturally raising the value of coins holding Bancor as reserves.
Why would anyone buys the coin?
Does it give any additional incentive for anyone to use Bancor coin if he intends to use the Bancor Protocol?
personally, i don't find their argument especially strong -of using Bancor coin as reserve, expecting it to rise, which naturally raising the value of coins holding Bancor as reserves.
There are no real advantages to using ETH as a reserve token, since it is exactly as liquid as BNT (which holds ETH in its reserve). Using BNT as the default reserve currency has some key advantages (from the FAQ):
- Network Effects: The more Smart Tokens™ that use BNTs in reserve (which will be the default setting for Smart Token™ creation in any Bancor developed or financed software service), the more valuable and more in-demand the BNT becomes. As the value of BNT rises, so too does the value of every Smart Token™ holding BNT in reserve.
- Incentive for Early Adopters: Just as with any cryptocurrency, early adopters will contribute to BNTs so that they can be the first to use the Bancor protocol and so that they can see their donation rise in value as the protocol is built and grows. Without this incentive, it would be a challenge to support Bancor’s development and growth, as well as to obtain the required reserve deposits in order to enable BNT to function as a continuously liquid decentralized exchange for popular ERC20 tokens (based on Smart Token™ changers, as detailed in the whitepaper and in various FAQs in this document). Linking popular tokens to the Bancor network (via token changer or token basket reserves) is expected to dramatically increase the usability and value of the network.
