We continue publishing the Friday AMA recap, hosted by ESPCoin CEO Eric Loit! We are grateful to everyone who shows interest in our project, and we are happy to answer all your questions!
Q: Since ESP’s goal is to make a significant impact on improving the effectiveness of the education system through the use of a technology-driven ecosystem of products and services. I wonder, how can they target low-income countries that lack these quality education systems?
A: This is a really good and meaningful question. We really have two initial platforms that are being developed in parallel. One of the platforms is an online content delivery one. Its a pay for use service to access content paid for with the Token. Content creators will create content and be paid in tokens when their content is viewed, they will also participate in an overall sharing scheme. In select cases we will have advertisers pay into the platform. Now the interesting thing is that we will pay consumers of the advertisement or placed content such that they can earn Tokens and then use them to view other content of their choosing. This means it is possible for low income households to earn directly on the platform such that they can use the tokens for the other educational content.
Q: ESPCoin is a decentralized Ethereum-based project that aims to make supply chains more transparent. With this in mind, will ESPCoin bring it’s transparency goal to life only on the Ethereum chain or do you have plans to take your idea to other chains such as BSC or Polkadot?
A: Initially we are on Ethereum due to the widespread acceptance for putting smart contracts in place. We hope with Ethereum 2.0 and proof of stake that gas fees will be reduced as we are very sensitive to extra fees as that is a major barrier for prolific use. We also plan on being on other chains as well such that it can give us some opportunity to reduce cost. Cardano and their adoption of ERC-20 is very interesting. Tezos is also interested in its own chain governance model and of course BSC. Each one has some unique advantages. In our longer term vision we also see a transition to a native coin for ourselves with the key economics and governance models in place. This of course is a longer term vision, short term we do plan on supporting multiple chains. It is part of the published roadmap
Q: Can you tell us how random allocation works in your transaction tax? Do you think the randomisation is fair for all holders?
A: There are two ways to look at this. Do you recognize people or the proportional size of their wallet? One is more people friendly while the other is more investor friendly. Ultimately we chose to look more at the people side of things considering our target audience. There are also real technical reasons for this choice.
Currently our 1% transaction tax works such that half is immediately burned in the contract while the other have is given to a random account holder. We only distribute to holders of the Token with a non zero balance. This results in only updating one extra account with each transaction which from a gas cost is far less than proportionally distributing it across each account holder. Doing the latter is insanely expensive and a real show stopper.
Q: I would like to know what benefits users in developing countries using the E$P token as a means of payment will have?
A: First, in developing nations, many people remain unbanked. So having a payment ecosystem that utilizes the E$P Token which is easily accessible via smart phones helps facilitate its usefulness.
As for controlling the volatility, by policy we have some very restrictive rules on how we are managing liquidity. This can include policy dictated buy backs to help mitigate any significant downturn. We also by policy will not disclose when we will initiate buy backs such that no one can take advantage of the timing. Though we will be doing monthly buy back and burn transactions, the timing will be randomized and spread out over time.
As the ecosystems continue to operate, there will be a more consistent flow of capital back into the coin base, one of the unique features of the Token. These will all be made public on the website for all to see. We really try to be as transparent with everyone such that through proof of action there will be less voice driven market movements.
Lastly, I would say that because many of our ecosystems are green walled, there is consistency in being in a more homogeneous environment, which brings stability. Yes we will have growth planned and we cannot control the free market, but we can put systems in place by design to make things as stable as possible.