So, if TKN rewards holder with a fraction of TX fees, doesnt it count as a security...
It was restricted for US residence if I remember right. It doesnt pay you anything unless you burn you tokens, so I am guessing its an edge case as the definition of a security varies from country to country.
Quick question. What will happen if all the tokencards are burnt? Nobody would be able to withdraw the fees so they just sit there? Or what? And could anyone explain how this ERC20 stuff works. As I understand we don't really have other cryptocurrencies with tokencard but ERC20 tokens which is somehow pegged to the cryptocurrencies. How is the peg maintained?
I dont know what would happen if all TKN were burned. The smart solution would be to stop charging the 1% fee.
ERC20 tokens are not generally pegged to any cryptocurrencies. They are most often part of projects just like Tokencard TKN. They can be used to represent almost anything you can think of. Some are money backed by gold, some represent a share in a portfolio, others again represent shares in a company, and the list goes on.