Tokens Explained: YTN vs. YTN_creatorname

Anthony Cerullo
March 7, 2018

Lately, we've been getting a lot of questions about our tokens, YTN and YTN_creatorname. What are they? What do they do and how are they different? Now, all this information is readily available in our Whitepaper but some people just don't have the time to read all 46 of those beautiful pages. Hence, let's put any confusion to rest and get to the bottom of the YouToken tokens.

YOUTOKEN'S TOKENS: UNDERSTANDING THE BASICS

As already discussed, YouToken has two tokens. Let's start off with YTN. YTN represents the entire platform. This is what you'll see on external exchanges someday alongside BTC, LTC, ETH and more. Inside the platform, we have the YTN_creatorname tokens. Crypto holders can benefit from investing in both. On the technical side, both YTN and YTN_creatorname tokens are Ethereum, ERC-20 standard compatible.

Utility tokens are designed to enable fluid interaction between entrepreneurs, investors and the YouToken platform. As more entrepreneurs register on the YouToken marketplace and produce successful projects, then the higher these two tokens rise in value.  But of course, that explanation isn't enough for you. So, let's do some math.

HOW DOES YOUTOKEN CALCULATE YTN VALUE?

So just to refresh your mind, the total value of the YouToken platform is represented by YTN tokens. You need to take into account both the quality and quantity of entrepreneurs registered on the YouToken platform when determining the price of YTN. From a mathematical standpoint, this calculation looks like this:

YTN price = ∑ Yx • Nx / N

N – total YTN distribution

 Yx – price of YTN_creatorname tokens 

Nx – total YTN_creatorname tokens distribution.

Once our "DAICO" stage officially ends, then more YTN tokens cannot be minted. At that point, all non-distributed tokens will be burned.

HOW DOES YOUTOKEN CALCULATE YTN_CREATORNAME VALUE?

YTN_creatorname works for someone in the same way a stock works on the stock market for a company. As the value of a creator's idea goes up, so does the value of their YTN_creatorname token. As a result, both the investor and the platform, on the whole, benefit from the growth of this asset. Investors who register on the YouToken platform can invest in these individual YTN_creatorname tokens in addition to the tokens for the entire platform (YTN).

So how do we calculate the price of YTN_creatorname? Well, there are two main factors that help us determine the price of YTN_creatorname (discounted cash flow valuation and the internal exchange). From the tech point of view, we calculate the price as follows:

YTN_creatorname price = ( Tcap + Rcap) / N

Where is:

N – total distribution of Entrepreneurs YTN_creatorname tokens

Tcap – total capitalization of all bid/ask trading positions on the internal exchange 

Rcap – total capitalization of all the rest tokens

Calculate Tcap as:

Tcap = [ Y pos1 • N pos1] + [ Ypos2 • Npos2] + ... + [Yposn • Nposn]

Ypos = price used in certain internal exchange trading position 

Npos = quantity of tokens used in certain internal exchange trading position

Calculate Rcap as:

Rcap = [ CF1/(1+r)1] + [ CF2/(1+r)2] + ... +[CFn/(1+r)n]

CF = Cash Flow r = discount rate (WACC)

MINTING OF YTN_CREATORNAME

YTN_creatorname tokens are minted only when a new entrepreneur joins the platform and creates their first project. The total number of YTN_creatorname tokens is limited to, 1,000,000,000. Each project of an entrepreneur receives a certain amount of YTN_creatorname tokens once they set the goal of their project. They also use the same token for any additional projects they wish to create.

THE BENEFITS OF YTN AND YTN_CREATORNAME TO YOU

Overall, the technology behind YTN and YTN_creatorname have the following advantages to users:

  • Faster creation of the crowd sales: smart contracts execution.
  • Safety for investors funds and scam prevention: DAICO and voting process for each project stage (for both YTN and YTN_creatorname tokens)
  • OpenSource: access to credible asset data stored on the blockchain.
  • Latest technology: we use 0xProject as internal exchange engine

After all that math, we surely understand if you have some questions so don't hesitate to follow us on Telegram, Slack, and Reddit where you can get some personal attention from our knowledgable staff. As always, thanks for reading and particpating!

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