Analysing the Tokenomics around Tontine Trust’s TON$ token

Tontine Trust pic.png

In this piece, we’ll be exploring the utility value of the TON$ token on Tontine Trust’s upcoming platform. I will then attempt to roughly estimate the minimum total market cap that TON$ could reach when only factoring in the tokenomics implemented by Tontine Trust. To provide more solid figures, I will just be including factors which Tontine Trust have already placed a number on when calculating the potential minimum market cap. We will then identify additional variables that would ultimately determine the Total Market Capitalisation of TON$ when it hits exchanges.

Please note that this article won’t be factoring in global variables such as market volatility and investor sentiment, as the aim of this article is to analyse how Tontine’s Trust success provides value to the TON$ token.

About Tontine Trust

Tontine Trust is a Start-up which aims to disrupt the global Annuities industry by introducing Fully Regulated Peer-to-Peer Tontines secured by the Blockchain. Tontine Trust intends to use a Smart-Actuary which will administer its Tontines.

To fund their idea, Tontine Trust will be conducting an ICO, where investors will have the opportunity to purchase ‘TON’ tokens. There will be a total supply of 1 billion TON$, with 1/3rd of this supply being distributed to sale participants. One TON$ during the ICO is valued at $1 USD (1).

TON$ Utility Value

To easily explore the functionality around TON tokens, below are the ways that key stakeholders will interact with the token on the Tontine Trust platform.

Tontine Customers:

• Individuals who buy into a tontine will be paid monthly in the form of TON$ tokens onto their TON$ card (2)
• These individuals can then obtain ‘special card privileges’ which depend upon the level of TON$ that they hold on their account (3)
• Individuals who invest in a Crypto Tontine may also be investing a portion of their savings into TON$ (4)

Financial Advisers:

• Will be incentivised to promote Tontine Trust’s products by being initially paid in TON$ (5)
• Will be required to buy and hold the value of 1 years’ worth of fees in TON$ from the open market (6)
• Will be required to purchase and stake TON$ with a value equal to 5% of monthly expected referral volumes (7)

Tontine Trust:

• Will distribute 330m TON$ to financial advisors so that they promote & distribute their Tontines. Tontine Trust expects to reward financial advisors with 5% of the assets they bring into their Tontines (8)
• 333 million TON$ reserved for the Tontine Trust team as incentives that are gradually unlocked when certain patent and AUM milestones are reached. Their incentives won’t be fully unlocked until Tontine asset volume is more than 1 trillion USD (9)
• Will buy back 0.5% worth of TON$ per year and add it back into their reserve (10)

Calculating TON$ minimum total market capitalisation when certain AUM milestones are met

$1 billion AUM
Fees held in TON$ by Financial Advisors & TON$ staked by Tontine Cardholders (11) = 1% - 2% ($10 - $20 million)
TON$ staked by Financial Advisors = 5% ($50 million)
Tontine Trust buy back = 0.5% ($5 million) (12)
Total = $65 to $75 million

$100 billion AUM
Fees held in TON$ by Financial Advisors & TON$ staked by Tontine Cardholders = 1 – 2% ($1 - $2 billion)
TON$ staked by Financial Advisors = 5% ($5 billion)
Tontine Trust buy back = 0.5% ($500 million)
Total = $6.5 to $7.5 billion

$1 trillion AUM
Fees held in TON$ by Financial Advisors & TON$ staked by Tontine Cardholders = 1% - 2% ($10 - $20 billion)
TON$ staked by Financial Advisors = 5% ($50 billion)
Tontine Trust buy back = 0.5% ($500 million)
Total = $60.5 - $70.5 billion

Additional factors that will affect TON$ Total Market Capitalisation:

Unfortunately, there are many other variables that we can’t yet calculate which will affect the total market capitalisation of TON$ when they reach certain AUM milestones. Although we can’t put a figure on these factors, it would be worthwhile considering the following and how they would affect the price of TON$:

  1. The number Tontine Customers & financial advisors who may keep a portion of the TON$ that they are paid as a cryptocurrency investment
  2. The amount of TON$ that Tontine Customers would need to stake to obtain special card privileges & how heavily the Tontine Trust team would market this to Tontine Customers
  3. The amount of TON$ that the Tontine Trust team may sell into the open market as their TON$ incentives are unlocked
  4. The proportion of TON$ in Tontine Trust’s Crypto Tontines and the amount of assets that these may accumulate in proportion to the total AUM

I hope this article helps you make a more informed investment decision in relation to Tontine Trust. Please let me know if you have any thoughts or feedback as I greatly value others perspectives.

Disclaimer:
The information provided in this piece that relates to Tontine Trust was accurate as of the 23rd of April 2018. The information within this piece is not financial advice, and individuals should conduct their due diligence before making investment decisions.

Disclosure:
I have invested over $500 USD into Tontine Trust’s ICO, as I concluded that it has the potential for high-growth in the long-term, while having a low risk to reward ratio in the short to medium term due to their presale bonuses (13).

References:

  1. https://support.tontinetrust.com/knowledge_base/topics/if-the-tokens-are-1-dollars-are-you-guys-valuing-the-project-at-$1b-either-way-if-you-allocate-1-slash-3-of-the-total-tokens-in-the-crowd-sale-thats-a-starting-valuation-of-$333m-based-on-coins-in-circulation-which-is-still-very-high
  2. White Paper Page 17 (WP)https://tontinetrust.com/whitepaper-nt/TontineTrust.Non-Technical.Whitepaper.(V1.01D).pdf
  3. WP Page 17
  4. https://tontinetrust.com/
  5. WP Page 21
  6. WP Page 21
  7. WP Page 21
  8. https://support.tontinetrust.com/knowledge_base/topics/will-there-be-a-set-number-of-ton$-mined-our-will-tontinetrust-mine-more-ton$-as-needed
  9. https://support.tontinetrust.com/knowledge_base/topics/if-the-tokens-are-1-dollars-are-you-guys-valuing-the-project-at-$1b-either-way-if-you-allocate-1-slash-3-of-the-total-tokens-in-the-crowd-sale-thats-a-starting-valuation-of-$333m-based-on-coins-in-circulation-which-is-still-very-high
  10. https://support.tontinetrust.com/knowledge_base/topics/what-is-benefit-for-ton-holder-slash-investor-is-there-passive-income
  11. https://support.tontinetrust.com/knowledge_base/topics/what-is-benefit-for-ton-holder-slash-investor-is-there-passive-income
  12. https://support.tontinetrust.com/knowledge_base/topics/what-is-benefit-for-ton-holder-slash-investor-is-there-passive-income
  13. https://blog.tontinetrust.com/the-ton-pre-sale-55m-of-bonuses-on-the-table-tontine-style-3da29d8d53b5

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Nice analysis! What could you say about PKT? Does it look credible?

Thanks regurterffrac197! I had a look through their website and they seem credible enough so I don't think they are a scam. They mentioned the total size of the game market but don't say how many gamers already stream games or the amount of miners who'd be willing to use PKT. I don't know much about their market so I wouldn't be able to provide much additional insight.

Thanks for looking into pkt!! And sorry for the super late reply.

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