The concept sounds pretty interesting! One question though. Will the prices in the online store (as one is paying with MNT) be constantly changing due to volatility in the cryptomarket? I mean you cant peg the price to a certain amount of MNT right? Otherwise eighter buying the token is unattractive because its to expensive compared to the value of the products or the investors will rather use their MNT to buy the goods in the store than hold their MNT. So in conclusion, it would only make sense to peg the prices in the store to dollar value. But what would be the incentive to use the store then? Please evaluate a bit and correct me if I got something totally wrong here. All the good to you!
Hi bribed - thank you for your great question!
The online store integration will allow us three options at the outset (and the same will apply to other retailers adopting Monartis payments, via Shopify from the beginning and then from the additional e-commerce platforms over time). Those options are essentially:
1. Set pricing in MNT
2. Peg the price directly to another currency (eg the dollar, as you mention)
3. Peg the price directly to another currency (eg the dollar) and then apply a price modification
In the case of our initial store, we envisage using option 3. So to take how that will work in practice:
Product A might be priced at $50. We will perform the conversion into MNT and then discount, allowing us to shown an MNT price against the dollar price.
So, to take a hypothetical example, product A might cost the buyer $50 (in fiat), but only $45 (in MNT).
That pricing structure allows us to encourage use of MNT from the beginning, which is important for two reasons:
1. We want the currency to be in use. Offering discounts in our own store is one means of encouraging spending.
2. We want transactions flowing through our store from the outset. That's important for demonstrating to other retailers that the integration is successful and that consumers are willing to spending via MNT in a digital store
We hope that answers your question, but do feel free to ask for any further clarification that you might require.
