the question is where do the coins that are swapped to event tokens come from in the first place, your example starts with "1 million coins are swapped". You have to buy them on the exchanges, right? After you have done your swap+festival+swap back thing you have to sell them afterwards, on the exchanges. This is the critical point. You - devs, whoever that is - promise to take over the volatility risk from the vendors. You need to be willing and be able (critical point again) to cover substantial losses in the case the tradeable coin drops during the festival period.
The concept is nonsense, nothing else.
The concept is nonsense, nothing else.
Nope, we hold the coins for the next event that we need them for. A million coins is a large amount I wouldn't expect to need anything like that for initial events, as adoption increases then we will increase our holdings as and when we need. It's not like we are going to need a million coins from the off. It was just an example of a figure.
You fail to understand where the mitigation of volatility risk comes from. It comes from the fact that at the event what is being traded between vendors and festival goers is not EventToken but in fact an asset of the coin created on EventHub, think Counterparty assets.
The reason for this is that it means people who already hold EventToken cannot come in and use their EventToken at the Event. EventToken is the blockchain that backs the created assets that are traded at events.
We need a master blockchain that secures the assets created on EventHub.
Think of it like you think of a coin like Via. Via at clearing house can be used to create assets by burning for XCH. The difference here with eventhub is that the asset can be converted back to the original coin. Why? because otherwise we would end up running out of coins to create the assets from.
What is being traded at the event is the asset not the coin. This is how we mitigate volatility, not by taking coins off exchange.
I dont fail to understand anything. Do you plan on holding the coins indefinitely? The concept is:
buy coins from exchange -> swap to tokens 1:1 -> sell to vendors/customers via webstie -> use tokens at festival -> buy back the token via website -> swap back to coins 1:1 -> sell on exchange.
Right or wrong?
