The ProtecTHOR token is a combination of an expanding cryptocurrency infrastructure and the diversified real economy. The ProtecTHOR token serves as a bridge between Kyoto currencies and the existing economy.
Overall, the coin is limited to 1 billion tokens and secured with smart contracts so that no further tokens can be replicated and reproduced. To enable a wide use of the token, an eco-system is needed which is flexible enough to meet the following requirements.
- Option as payment method with worldwide payment network
- Equivalent in the real economy
- Simple operation
- Autonomous ecosystem
The services will include, among others, the following options.
- Crypto-mining and -trading modules
- Interne Onlineshop-System
- Integration into a PoS payment system with worldwide payment options (depending on the availability of merchant terminals)
- Acquisition of property such as Real Estate & Construction Projects
- Start-ups with profitable prospects and expandable investment opportunities
- Classic Corporate Involvement and Project Development
- Mining in Macedonia
- Renewable Energy
- Online Academy
- Social Projects
Over time, we will continue to extend the benefits of the ProtecTHOR token to diversify the ProtecTHOR ecosystem as much as possible.
The difference between
coin and token
When it comes to the blockchain, it's also about protocols, a kind of language in which individual network nodes communicate with each other under predefined rules. Bitcoin and Ethereum are not just crypto currencies, but primarily protocols.
Bitcoin, Ethereum and other blockchains like NEO and EOS use their own blockchain, on which coins like Bitcoin and Ether are based and defined. In simple terms, this means that every coin comes with its own blockchain. A token, on the other hand, usually does not have its own blockchain, but rather builds on an existing protocol or existing blockchain such as Ethereum, NEO or EOS. An example of this is TenX's pay token, which is based on the Ethereum Blockchain as a token (ERC20).
The cryptocurrency Red Pulse (RPX) is a token (NEP5) based on the NEO blockchain; the same applies to the cryptocurrency TheKey (TKY). NEO often speaks of a 2-token model, but on closer inspection, NEO is the coin, while GAS is the token. For example, Monero, Cardano, IOTA, Dash, Tron, and NEM are coins, as these cryptocurrencies are simply based on their own blockchain.
The difference between a utility token
and a security token
Many projects, such as Tron *, Status (SNT), or TenX, run as tokens on the Ethereum Blockchain (ERC20 Token). Between the different tokens it is again necessary to differentiate between utility and security tokens.
Most projects are utility tokens. A utility token is simply a tool that serves as a "fuel" on the blockchain. That is, a utility token may have a particular function on the blockchain, for example, to pay transaction fees or to gain access to a system or service (utility token). In addition, voting rights could be associated with the utility token.
A security token, on the other hand, behaves like a security. If profit or sales promise are linked to the token or if the token issuer incurs any repayment obligations, the token is usually classified as a security token. The same applies if the token owner acquires equity rights by acquiring the token or the token represents a monetary investment.
Whether a token is classified as a security token depends on the result of the so-called "Howey Test". The United States Supreme Court established it in 1946 to determine whether certain transactions were investment contracts under the Securities Act of 1933 and the Securities Exchange Act of 1934, respectively. If a token does not pass the "howey test", it is generally not classified as a security token.
Conclusion : Many ICO projects try not to fall into the classification as security tokens, because they bring with them extended disclosure and registration requirements and, ultimately, very high costs. Those interested should therefore know that a utility token is fundamentally different from a stock and barely grants any further rights to the issuer / token publisher.
This means that the prospect with a utility token does not acquire a stake in the company and therefore has no claim to possible dividends or other payments. Utility tokens merely serve as a tool or barter on the blockchain to perform certain functions or services.