Coins In Context
Coins in context
Historically, most cryptocurrencies are designed to incentivize miners and stakers to expand and secure the network. Since low-difficulty mining is highly profitable, this brings some attention to the coin and begins to distribute it. However, these users are quick to divest their holdings without an ongoing driver of value. As coin supply rises faster than adoption growth, supply overwhelms demand, reducing the coin’s value. While the coin may now be somewhat more distributed, it is still concentrated among a small community of core users and transient holders whose primary interest is financial gain. Speculators and traders may buy the coin, but they are also short term holders. The cycle of price manipulation and massive sell offs repeats and the result over time is a devalued coin with low visibility, poor reputation, and a user base comprised of transient profiteers with no interest in a long term investment.
By contrast, the relationship between ionomy.com and ION is designed to build value from the start. ionomy.com produces and sells digital goods with a focus on mobile and social gaming applications. The company funds a system of social and financial incentives to cultivate an engaged user base. Users are rewarded for activity within the company’s products. By continuously creating desirable uses for ION, the company incentivizes more users to join the ecosystem. The user base then consumes more IONs, creating demand and scarcity.
At the same time, masternodes reward users for holding ION and performing work to secure the integrity of the network and blockchain. Furthermore, ION features powerful technical capacities designed to attract entrepreneurs to build new businesses, expand the user base, and increase the utility of the coin.
The above content has been copied from the white paper and is subject to change, for the latest version please visit: https://github.com/ionomy/ion/wiki/ION-Technical-Whitepaper