The Global Token Association: Driving the Token Economy to Unprecedented Heights
Cryptographic tokens have evolved remarkably to formulate an entirely new industry. They offer unique technological benefits that can be applied to solve a wide array of problems faced by mankind today. But in spite of their meteoric rise, they also have major loopholes to overcome if ever they are to attain mainstream adoption.
It is a relatively immature industry that still has a long way to go before it can hold its own. Additionally, there is stiff opposition from legacy actors who consider the industry a threat to their status quo and seek to stifle its growth. But in spite of all this, the industry still has an impressive potential and under the right kind of leadership, will be able to reach it and transform life as we know it.
Global Token Association is seeking to set the token industry agenda, providing the leadership this sector needs to reach its full capacity. It draws a lesson from the China ICO and cryptocurrency ban to demonstrate that the sector requires a multi-faceted approach in order to make the desired impact. It is clear from the effects of that ban that a focus on singular projects is not enough to bring about any notable transformation.
Restructuring the Token Economy
To this end, the model has set a number of goals that target key aspects of the token technology in order to improve its basic structure, protect it from external risks, give innovations and projects built on its foundation the chance to thrive.
Legitimizing the Industry
One of the biggest challenges for businesses within the token sector is that their operations fall within a legal grey area. It is noteworthy though that these operations still make a positive contribution to the economy and the society at large. This means that they deserve legal recognition and the Global Token Association has the objective of making that happen.
The current token model is confusing for the stakeholder within the space due to the great diversity within it. It is however possible to classify the different tokens according to various aspects like utility, distribution, reward structure and price. These attributes define them as securities or equity tokens, utility tokens, decision tokens or commodity tokens. The Association plans to develop a clear classification framework so as to help stakeholders know how to treat each one.
The cryptocurrency industry as a whole has been subjected to uncertain taxation terms that seem to be regulated impulsively. This has led to a massive tax burden on token owners who have to pay capital gains on transactions. Token sales also fall victim to shifting goalposts when it comes to taxation. The association is intending to develop a clear and consistent approach to this so as to reduce this burden.
Illicit Activity Policing
A serious stigma associated with the token economy is that it provides a conducive environment for illicit activities due to its anonymity and cryptographic features. It has been linked to money laundering and drug deals among other underground activities.
It is however noteworthy that the publicly distributed ledger framework on which most tokens operate makes tracking quite easy. The Association has the objective of offering support to the authorities to help clear the stigma and enable the industry to grow unfettered.
Public Education Campaign
The blockchain technology and its token economy offer lots of unique benefits in numerous facets of life. However, even among those who have embraced the innovation, not everyone fully understands how the system works. This is one of the reasons people at times fall prey to simplistic scams as they have no way of telling what is genuine from what is not.
The Global Token Association will set in motion a public education campaign so as to increase the knowledge base of token users with regard to the technology surrounding the sector.
Developing a Code of Conduct
Unethical conduct within the token industry is propagated by the fact that there are no principles governing its community. This will inevitably lead to the imposition of rules from governmental authorities and this is likely to stifle the sector’s growth.
In order to prevent that eventuality, the association will work hand in hand with relevant partners to develop a code of conduct. It will also seek ways to enforce it so as to bring some sanity into the space and protect investors from malicious actors.
Turning the Tides
Putting into place the above initiatives among others is bound to alter the current state of the token industry. It will introduce more certainty into the space and reduce the public’s negative perception of it. This in turn will enable the industry to grow and thrive to reach its full potential in transforming various aspects of life.