We are working on a new smart contract (the announcement of the new about the smart contract improvement ) and we plan to implement the Bancor Protocol.
Bancor Protocol is a promising technology that turns any token into a “smart-token” that will automatically without any additional actions from the author traded or exchanged for any smart-token.
A smart token contains one or more other tokens that form a “reserve”, which allows anyone in real time to buy a smart token in exchange for any of their backup tokens, according to a special formula that balances the volumes. The percentage of reserve that the author chooses is called Constant Reserve Ratio (CRR). The reserve currency can be any ERC-20 token.
In our case, we plan to use the Bancor token as a backup token and set the CRR initially at 1% (for greater volatility) and increase (over a year) to 10% to reduce volatility, which is important for FNTB tokens, as means of payment in the FinTab system.
1. Token’s liquidity. Regardless of the volume of trading on the exchanges, there is always a possibility in the Bancor Network to exchange one smart-token for another, including a Bancor token.
2. There is no additional commission in the Bancor Network, only the gas price (Gas).
3. Additional financial security of the token. The backup token additionally supports the primary token (FNTB).