Ethereum based VISA-DEBIT card - “TokenCard”
The biggest challenge of cryptocurrency today is the ease of usability. People are investing money in buying cryptocurrency but it is saved as assets. Since there is no simpler way of using it to buy and sell goods, it is not frequently used as a currency. In absence of fundamental use of a 'currency' , IRS issued guidelines for 'Virtual Currency' referring it as 'Property'. It states that “Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply”.
One of the best solution to the aforesaid problem is “TokenCard”. Today, May 2, 2017, DigixGlobal & Monolith Studio in partnership launches the initial token sale for “TokenCard” powered by smart contracts.
100% MVP cards were claimed and 42.3 m tokens were created in less than an hour of the start of the event. Token creation event is closed now, still additional contribution will be received for 24 hrs. 166.7K / 65K Ether has been received by the time of news reporting. It is a huge success for “TokenCard”.
TokenCard is a blockchain based VISA-DEBIT card that uses Ethereum network for payment. TokenCard will allow token holders to use Ether as well as other ERC20 tokens to purchase items anywhere that accepts VISA debit cards. Each TokenCard is backed by a personal smart contract. It allows Ether and other ERC20 compliant tokens to be spent, including stable coins. These smart contracts ensure deposited funds remain in full control of the user, without compromising on usability. It is powered by gold-backed debit card and is usable at payment terminals around the world, including ATMs. Whenever the TokenCard is swiped, the transaction incurs a 1% licensing fee which accrues to the TKN Asset Contract. The licensing fee is denominated in the token used, however, TKN backed swipes don't incur a licensing fee.
TokenCard is a depositless Ethereum token-based debit card & platform with three elements:
The Token™ Contract Wallet: secures users' assets and enforces user-set spending and security parameters.
Your physical TokenCard™: connects your Contract Wallet to the VISA® network — enabling online payments, PoS transactions and ATM withdrawals, using ERC20 tokens in the Token™ Contract Wallet.
The mobile Token App: neatly unifies the process, offering a clean, intuitive experience and empowering users to finally go bankless, wherever they are.
TKN creation Period
The TKN creation period commenced today, May 2, 2017 and was planned to last maximum 7 days as per the initial estimate, but since the cap is reached today, additional contributions will be accepted for 24 hours, in case users missed a very short window for TKN creation. It create 42.3m of TKN for sale in exchange for ETH, fiat and other tokens from our initial token partners and no more tokens will be created thereafter. Digix announced, that an additional 5% bonus of TKNs will be generated when participants use DGDs during the launch.
Key features of TokenCard
Revolutionary - User can buy groceries in DGX, ETH, DAI or any supported tokens.
User controlled - User never has to deposit with TokenCards, ever. Tokens are secured inside a contract wallet under user's control.
No Compromises — User retains the security and control of a contract wallet while gaining the utility of a global payments network.
Advantages of TokenCard
User Friendly — Designed in a way that anyone at any level can quickly use without having to master the underlying blockchain technology.
On the Fly Information — Whenever a user swipes his card, a transaction entry will simultaneously appear in his Token App™ displaying business name, establishment type, amount spent (local fiat amount and token), and transaction location using Google Map's API.
Token-to-Token — Users can re-balance their token portfolio anytime with the in-app token-to-token exchange. No need to withdraw and deposit funds into a centralized exchange! Simply exchange tokens within the Contract Wallet with a click.
Fiat-to-Token — With sufficient liquidity parameters, it also provides an in-app fiat-to-token exchange option. This feature allows users new to the token economy with an accessible on-ramp to not only this platform, but to the Ethereum token economy at large.
TokenCard and Bancor Partnership
In addition to this big event today, an another announcement of upcoming partnership between TokenCard, the first smart contract powered debit card, and Bancor , the first protocol for intrinsically tradable smart tokens is made by the The Bancor Protocol .
Bancor Protocol is a standard for a new generation of cryptocurrencies called smart tokens. The Bancor protocol enables built-in price discovery and a liquidity mechanism for tokens on smart contract blockchains. These “smart tokens” hold one or more other tokens in reserve and enable any party to instantly purchase or liquidate the smart token in exchange for any of its reserve tokens, directly through the smart token’s contract, at a continuously calculated price, according to a formula which balances buy and sell volumes. The partnership will allow smart tokens to be spent with TokenCards, and will offer TokenCards to Bancor’s end-users using and issuing smart tokens which will seamlessly work with TokenCard’s VISA Debit.
“This is a perfect match as TokenCard offers a solution enabling Ethereum tokens to be spent in real-world commerce, and Bancor is bringing the ability to issue liquid Ethereum tokens to the end-user. Both companies and their customers stand to benefit from a stronger bridge between the new and traditional economies” - Mel Gelderman, CEO of TokenCard.
DigixGlobal Ltd. is a Singapore based company which is one of the first Decentralised Autonomous Organizations (DAO) having Ethereum Blockchain as underlying technology. About a year ago, DigixGlobal raised almost half a million ether coins only hours after the opening of “the first decentralized crowdsale on the Ethereum Blockchain” according to Anthony Eufemio, CTO at DigixGlobal. DigixGlobal has a proof of asset (PoA) protocol for an Ethereum-backed gold tokenization system. The crowd sale created two million DigixDAO Tokens (DGD) which are different from the gold backed DGX tokens. The Digix crowdsale is one of three better-known crowdsales to come out of ethereum’s ecosystem which, due to its smart contracts platform, allows for new decentralized business models. Digix tokens (DGX) are created through a “Minter Smart Contract” by using Ethereum’s smart contract platform with each token representing 1g of gold and divisible up to 0.001g.
About Monolith Studio
The Monolith Studio is a Web3 venture production studio to be registered in Switzerland. It is exploring ways to materialize Ethereum’s transcendental potential by creating next generation Ethereum powered products and platforms for the end-user, on the Web3. The TokenCard is its first project.
TokenCard is positioning themselves to be a leader in Ethereum transfers to the fiat world. It aims over time to bring about a world which makes access to tokens far easier, far more intuitive, with far less friction than it is today.