Ecosystem initiative 2Tokens tokenizes credit vouchers using Dusk Network Privacy Blockchain
Dusk Network is deploying a set of utility token functionalities for the European Ecosystem initiative 2Tokens. The privacy-oriented nature of the protocol combined with the unique zero-knowledge virtual machine mark the advent of zero-knowledge smart contracts. The smart contract governing the utility token issuance, as well as a set of wallets representing the web store, are the first of its kind as they provide full GDPR compliance and user data protection.
In October 2019 Dusk Network joined the 2Tokens Advisory Board. The business team played a key role in the R&D phase of the initiative, which resulted in the launch of three separate 2Tokens use cases. The Utility Token use case is the first to launch, and is a product of a collaboration between Dusk Network, and renowned players such as Rabobank, CMS, WatsonLaw, DataFloq, and YesDelft!.
Utility Token use case
The Utility Token implementation for 2Tokens is simple; a redeemable voucher for the 2Tokens Webshop with a built-in discount of 10%. There are a number of clear goals;
- One of the deliverables of the 2Tokens project is a regulatory framework for the Netherlands. Emitting a token is a great way to test this framework.
- There is a growing demand in the community for new ways to be included and be financially supportive to the initiative. Emitting a token captures this demand without immediately requiring something to spend it on.
- One of the main goals of the project is to educate. A token allows us to incentivize, and thus stimulate, people getting familiar and comfortable with handling tokens.
- The Utility Token issuance reduces financial risk for the foundation, increasingly relevant since the COVID-19 pandemic.
The Utility Token will enjoy a limited lifespan, expiring after the 2Tokens Conference Summit in November 2020. The ambition is to have the utility token serve as a confined experiment, to consequently make way for a long-term security token on top of Dusk Network. This token could then include features like voting rights, where ownership represents a real stake in the governance of the initiative.
What is in it for Dusk?
You might wonder why a security token blockchain is deploying a utility token contract? And that’s a great question. Whilst it might seem counterintuitive at first, there are a number of reasons why this initiative makes a lot of sense;
- Deploying utility tokens is not that difficult compared to deploying security tokens in terms of platform functionality. This implementation is a great stepping stone towards a security token platform with more functionalities, without side-stepping our roadmap.
- The initiative gets a wide crowd familiar with handling the Dusk Network technology and eyeing what it is capable of. The 2Tokens initiative enjoys a lot of traction with corporates, governments, and financial institutions. By being the main building block for this use case we get to demonstrate firsthand why our blockchain is well-suited for financial applications..
- It strengthens our position as technology experts in our local ecosystem, and positions us well for increasingly relevant implementations in the securities sector.
More ins and outs..
Join us in this webinar on “Opportunities and Challenges for Tokenization” as our business lead Jelle Pol kicks off the sale of the world 's first zero-knowledge utility token for the Dutch ecosystem.