The ability of companies to create their business models by issuing tokens is driving the FinTech industry as we know it. Tokenomics, or the token economy behind these blockchain-based assets, are completely redefining the way companies raise funds and implement business models. However, this evolution has also brought with it complex regulatory, economic and technical challenges that may cause many not to adopt token frameworks.
For example, projects offering existing tokens have weak utility behind their tokens. This generally leads to poor demand and purpose behind the token. Other than that, not all projects have the proper knowledge to create a strong token economy, which is vital to the long-term growth of the project. Also, launching a token is tricky as most projects (blockchain-based or not) certainly don’t want their token to be classified as investment securities. Fortunately, IQ Protocol, developed by PARSIQ, can solve all of these problems.
IQ Protocol offers an innovative circular economy model that allows projects, companies and organizations to issue and manage compatible tokens.
Explanation of the first cryptocurrency SaaS
As the creators of the IQ Protocol, the PARSIQ team has come up with a blockchain-independent solution to implement on-chain subscriptions in a flexible and cost-effective way. All of this has been done while preserving the most important workflows, such as cancellation / refund policies, different time considerations, consumption rate quotas, discounts and more. This was achieved by introducing a concept that uses PowerTokens. PowerTokens are not used as a means of payment, but rather as a generator of deterministic “energy” over time. Within IQ, energy plays a role in accounting for the service consumption unit (like gas units in Ethereum).
PARSIQ serves as a platform for blockchain monitoring and interpretation: it enables businesses and individuals to create custom Smart Triggers and adopt real-time blockchain data streams.
Solving the common cryptocurrency “no token” problem, the company has become the first company to transform the traditional subscription model using IQ Protocol. Starting today, all PARSIQ users can use the platform and create monitoring solutions simply by holding PRQ tokens as a payment method.
IQ Protocol helps companies build a circular economy and take into account the interests of the main stakeholder groups: HODLers, service users and merchants. Under IQ, the new PARSIQ subscription model works as follows:
The users of the platform, mainly companies, pay for the service by possessing special PRQ tokens. Consumers have two options: buy the original tokens that have lifetime value or rent PRQ tokens from the rental pool. The main idea here is that the original tokens are not released from the rental pool. Instead, the group mints an expired version of these tokens. Lenders can lend your PRQ on the IQ Protocol and start getting performance . If a person lends their PRQ to the group, they will be issued an iPRQ (PRQ interest) as proof that they have placed PRQ in the group. As the name suggests, the lender earns an interest in your PRQ when the PARSIQ customer borrows them from the pool.
Subscription as a Service (SaaS) – Powered by IQ
Leveraging PARSIQ’s revolutionary IQ protocol, companies will now be able to seamlessly build blockchain SaaS models, allowing companies in all industries to tokenize their product or service for on-chain consumption.
This is possible through IQ and the introduction of a concept known as Life Time Value (LTV). When a company tokenizes its offerings, each token is assigned an LTV, which gives the token holder the right to consume a defined amount of goods or services.
Such a concept allows for virtually anything to be placed on the blockchain: from the content streaming business to its local market, a company can tokenize its product offerings and assign each issued token an LTV. Using them as examples, content streamers can issue tokens that allow the token holder to consume one hour of content each day for the next 365 days. The local market could offer weekly delivery of household staples (fresh fruits, milk, bread), which would be delivered at the beginning of each week for 52 weeks. The possibilities are limited only by the way the company intends to tokenize its offerings. On the consumer side, individuals would simply buy the tokens. By virtue of owning the token, the token holder would be the recipient of the value that has been defined for that token, for the life of that token.
Furthermore, consumers who do not wish to have tokens, but prefer to rent them, can also do so by introducing a rental group, made possible by the Protocol. As long as these tokens are held or rented, the consumer can enjoy the value attached to the token. In doing so, a blockchain subscription model was born.
Through this approach, IQ enables companies to serve their existing audiences and unlock new revenue streams. It does this by enabling companies to produce offers tailored to a potential customer who may not yet be ready to fully commit to a company’s product or service.
Additionally, crypto projects struggling with existing tokenomics structures can benefit from IQ. After initially fundraising, many projects suffer from finding a use case for their tokens. At best, a consumer can be incentivized to purchase the project token, just for the purpose of spending it to purchase a particular service. Under this model, it makes little sense to go through this intermediate step if, in fact, the transaction can be done entirely in fiat.
However, with the IQ Protocol, these companies can tokenize their product offerings, incentivizing communities to hold project tokens for the life of the token, while enjoying the value that has been assigned to that token. Additionally, token holders have the potential to earn, by depositing their shares in rental pools and acquiring interest payments. Through IQ, a project can develop a circular economy, drive demand for its services and its token, ultimately benefiting all who believe in the project being supported.
Free, transparent and open source
As an open source protocol, any project can use IQ to meet its needs. Because of this, companies can customize the solution to ensure that it fits properly with their existing business models. Additionally, implementation costs are manageable, limited to GAS payment costs.
Under this efficient and easy-to-adopt model, PARSIQ is currently working with more than twenty companies in the implementation of the IQ Protocol. If you have any questions about how IQ can be incorporated into your existing business model, the PARSIQ team is ready to assist you with your inquiries.
Crypto projects that use the IQ protocol can:
Issue utility tokens that are not securities
The system is designed in a transparent way, so that the criteria of values do not apply to the tokens issued in IQ Protocol. The services built into IQ Protocol, such as the risk-free loan and loan feature, are completely non-custodial. Lenders can provide capital liquidity to the protocol on a voluntary basis and control their tokens via trustless smart contracts. Since volunteer lenders or borrowers use the service of their own free will, projects will not be liable for guaranteed returns from the loan pool.
Make token issuance simple and secure
There is no need to think about how to implement complex tokenomics when issuing tokens because IQ Protocol has already built-in industrial-grade security frameworks Benefit from the ease of having suitable tokenomics ready to customize and implement This means that companies can focus on business logic and execution using the token without having to worry about the underlying technical complexities.
To learn more about how Parsiq is using its unique IQ protocol to power the world’s first Saas business, visit their main site here.