YouToken Smart Contract Analysis #1: Donation/Sponsorship
What sets YouToken apart from the rest? For one, it has a variety of options for investors to choose from when contributing to an entrepreneur. Depending on their individual situation, they can choose between, donation/sponsorship, debt, revenue share, and equity. Each of these “smart contracts” deserves a little more detail so let's dive into them one by one so you get a full understanding of how they work.
Which YouToken Smart Contract Is The Best?
To answer this question, you first must take a look at your situation. Want to invest using the YouToken platform but don’t know where to begin? If you fall in this category, then perhaps the "donation/sponsorship" method of investing is the right one for you. It’s the most straightforward smart contract that gives you the opportunity to purchase creator tokens (YTN_creatorname). It’s also the perfect chance for investors looking to capitalize on the long-term potential of an entrepreneur. Let’s take a look at an example.
How Does YouToken Donation Smart Contract Work?
Let’s say a guy named Elon Bezos has this idea of opening the world’s first electric, self-driving, e-commerce rocket to Mars. The idea is there, but young Elon Bezos has a problem. He doesn't have the money to put his crazy idea into action. Meanwhile, you (the investor) see some real potential here and want to help him out. How will you do it?
Well, if you’re using the YouToken platform, then this really couldn’t be easier. With the donation/sponsorship smart contract, you can choose to support Elon Bezos directly by purchasing his personal tokens (YTN_elonbezos) at a low price.
How To Profit From YouToken Donation/Sponsorship Smart Contract
So how do you make money from all this? Well, it’s simple. If Elon Bezos’s idea becomes successful, then his personal tokens (YTN_elonbezos) will grow in price. It’s just like stocks on the stock market. The more successful a company is, the more valuable their stock becomes. As an investor, you essentially own stock in Elon Bezos. When his startup succeeds, then your stock rises in value and you can then sell the YTN_elonbezos tokens for a higher price.
In the end, everyone wins but the excitement doesn’t stop there. We still have three more smart contracts to go over that give both entrepreneurs and investors even more groundbreaking options so stay tuned in to the blog!