The Ethereum foundation doesn't get a "portion"of the revenue created by the token. Tokens are nothing more than ideas being floated and traded.
We as common people are buying into the ideas thinking they would actually materialize and transferring ETH to the token makers. This increases the price of ETH, gives lot of easy money to anyone with an idea, some references and the time to manage online campaigns. Its all pretty fragile right now because we are all banking on our own crypto-startup becoming the next bug thing.
Topic: does ethereum make money off of people who make tokens based on them? (Read 179 times)
January 14, 2018, 05:55:03 AM
January 14, 2018, 04:46:57 AM
If someone makes an erc20 token, does ethereum profit from it? Do they get a portion of revenue? Thanks
As far as I know, if your going to make a ERC20 token it means that the people who wants to invest in your ico will pay ETH in exchange to the token they get from ico.Then once your token is out in the market, the first coin to be pair is ETH.
Meaning the demand of ETH will increase with this new token.
January 13, 2018, 08:20:22 AM
ERC20 tokens that are being created within the Ethereum network requires to open a smart contract, the fee for the smart contract is being paid with Ethereum.
People need to buy Ethereum if they want to make a new ERC20 token, so they buy the Ethereum, which supports the network and raises the Ethereum price.
So indirectly, more people make tokens= price of ethereum is being increased.
Also, the transfer of ERC20 tokens within the Ethereum network costs a fee which is being paid in Ethereum.
People need to buy Ethereum if they want to make a new ERC20 token, so they buy the Ethereum, which supports the network and raises the Ethereum price.
So indirectly, more people make tokens= price of ethereum is being increased.
Also, the transfer of ERC20 tokens within the Ethereum network costs a fee which is being paid in Ethereum.
January 13, 2018, 07:36:17 AM
yes i think it earns from the charges it could gain from transactions it offers. plus, there is a possibility of the increasr of the amount of transaction fee because there is an increase in the no. of people who actually buy bitcoin and join various campaigns that makes the demand increase also.
January 13, 2018, 06:46:28 AM
If someone makes an erc20 token, does ethereum profit from it? Do they get a portion of revenue? Thanks
It doesn't make any direct profit from it's tokens, but since being a platform for investments is their main utility right now, I would say ethereum has a lot to gain on it's tokens success. As ICOs get more popular, and if good companies end up emerging from ether platform, more people will buy into ether, in order to be able to invest in these ICOs, so it's price will be rising. Also, as soon as ether moves to being proof of stake, it will be even more common for investors to hold to Ether, since they will be making profit from holding their investments funds, and then could be having profit from investing in ICOs, so if they make good decisions they will always have some profit, and this will be a great incentive to ether and use it as an investment platform.
January 13, 2018, 05:00:50 AM
If someone makes an erc20 token, does ethereum profit from it? Do they get a portion of revenue? Thanks
I think ethereum make good money from tokens and each of the contract on ethereum network. The gas you pay during transactions are some of the way ethereum make there money. Ethereum also make some money from etherdelta decentralized exchange and that is why any time you make a transactions you pay a fees for it. January 13, 2018, 04:46:09 AM
In a way yes, as people will need ETH in order to participate in an ICO for the ERC20 token. As people buy ETH, the value will increase, does the marketcap of ETH will also rise.
December 18, 2017, 10:53:42 PM
If someone makes an erc20 token, does ethereum profit from it? Do they get a portion of revenue? Thanks
They do not get a share of revenue, also I do not know who you necessarily mean by ethereum as there are techinically no owners. A fee will be paid each time one of these tokens is transferred which will be in ETH. This also can push the price of ethereum up as there is more demand for it.
Right, as far as I am aware when you buy a token with Ethereum from a smart contract, like through a ICO you are going to send your Ethereum and also you spend some ether on sending the transaction. That is how Ethereum's value will go up in turn because now the amount has gone down while the supply is still going to keep going up and going up.
December 18, 2017, 10:20:36 PM
If someone makes an erc20 token, does ethereum profit from it? Do they get a portion of revenue? Thanks
They do not get a share of revenue, also I do not know who you necessarily mean by ethereum as there are techinically no owners. A fee will be paid each time one of these tokens is transferred which will be in ETH. This also can push the price of ethereum up as there is more demand for it.
December 18, 2017, 10:04:36 PM
Directly or Indirectly Ethereum does make their profits from the ERC20 tokens. As you can see almost all the ERC20 tokens that are created on the ETH platform are being traded on Etherdelta trading platform. So most of the users who use these tokens often trade on that exchange and ETH get their profits in the name of trading fee. So in a Indirect way Ethereum is making a profit since most of the users trade those tokens there and pay fee for it to trade.
December 18, 2017, 08:28:40 PM
If someone makes an erc20 token, does ethereum profit from it? Do they get a portion of revenue? Thanks
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