Why should businesses tokenize communities?

Businesses can build stronger and more intense communities thanks to the community token model, where the community can be rewarded more. The model incentivizes fans to engage and promote the business more than ever because community members have economic & social incentives to help the business succeed. The community will grow not only by its members but also in value.

The token is used as a way to access the community and to give each community its own kind of economy. All transactions and transfers inside the community are done with the community token. Furthermore, if people work for the business, they can be paid out with the community token. The tokens can be seen as an advanced version of membership cards but based on the blockchain.

What are the main benefits for businesses?

From business perspective, much more can be gained from a community (skills, opinions, etc.). An involved and active community will result in happy, returning customers that increase brand awareness and trust. This will positively affect the profit and success of the business. Therefore, Fundle offers:

• Stronger and intenser community building thanks to the community token model.
• Incentivize members to engage and promote the business more than ever because members have economic & social incentives to help the business succeed.
• Stimulates members to participate and think actively.
• Access to the skills of a whole community to help grow and improve the business.
• The system enables to unlock new forms of product creation and working, namely together with members.
• Building of a digital economy. The market cap of the tokens gives a good representation of the value that the community is worth. The community will grow not only by its members but also in value.
• Flexible funding with multiple funding rounds and direct access to part of the funds. (Mechanism will be included in the future)

What are the main benefits for the community?

Current community building and crowdfunding platforms lack real community involvement. Members cannot really be "part of" and there is little interaction. Furthermore, both business and members cannot always have fair benefits (social and/or economical). Therefore, Fundle offers:

• Exclusive membership with access to special perks, experiences, and more community benefits. Members are proud token holders of the community.
• Involvement and interaction with the business. Members won't simply support the business financially but can be involved in the design process for example.
• More members entering the community can lead to an increase in personal token value.
• Creatives can work for the community in exchange for community tokens. For example, website or logo design, (social media) marketing, video or picture creation/editing, etc.
• Democratic fundraising mechanism in which members have control over the collected money. (Mechanism will be included in the future)

Why does Fundle use crypto and blockchain?

We believe that rewarding the community for the value they’re helping create in the business is very important to stimulate active participation. Community tokens are the perfect tool to create this type of involvement. Especially for early adopters, the value of tokens can grow as more people join the community.

Businesses' considerations for crowdfunding are mainly because of fundraising and community building. With this concept, we can strengthen both aspects by utilizing blockchain technology in this smart way.

By using crypto and blockchain, everybody anywhere around the world can become a member and enjoy the benefits of the community. Furthermore, they are able to earn money by working for the community. The tokens can be bought and sold 24/7 worldwide. Transactions can be done easy and quick. Blockchain also provides a transparent and secure way of doing transactions.

What is the purpose of community tokens for members?

Community tokens are not digital assets. Users buy the tokens to become part of a digital community and to enjoy the benefits of that community.

Participation in crowdfunding campaigns are done because people want to have the product or want to support the business. Relatable to reward-based crowdfunding. All transactions conducted within the community are done to empower the community and not as an investment in a business.

What is blockchain?

A blockchain is, in simple terms, a chain of blocks that contain specific information. It is a technology that can revolutionize how we exchange value, transfer ownership, and verify transactions.

It can be described as a digital ledger of transactions that works in a decentralized way powered by a network of computers. The information recorded on the blockchain is immutable. The system makes it difficult or impossible to change or hack the data.

What are crypto currrencies?

Cryptos work on the blockchain and are digital currency. It uses cryptography to secure transactions. The transactions are recorded on the blockchain.

It solves problems that traditional currencies have by giving the power and responsibility back to where it belongs, the currency holders' hands. Banks and so transaction fees are almost eliminated. Money transactions are cheaper, cost-efficient, faster, and safer than ordinary electronic transactions. Furthermore, decentralized systems do not collapse at a single point of failure. Crypto allows the world to shift to a global, trustless, and open new digital economy.

What are smart contracts?

Smart contracts are immutable agreements that are recorded on the blockchain, containing specific logical actions comparable to a "normal" contract but works automatically.

The contracts run when predetermined conditions are met. Fundle uses them to automate executions.

What are wallets?

A wallet is an address (location) where a user stores crypto coins or tokens and from where coins are sent and received. The address is an encrypted key required for the holder to verify a transaction. Wallets allow users to perform digital payments quickly and easily.

How does the platform economy of Fundle work?

The Fundle platform uses 2 types of tokens.

USDC Is a digital stablecoin that is pegged to the US dollar. Fundle uses it as reserve token for the token bonding curve mechanism. Users can pay with USDC via crypto or fiat gateways

Community tokens are bonded to USDC. Community tokens are not a regular token and cannot be traded between accounts. The tokens belong to a particular community. This type is very relatable to a NFT (Non-Fungible Tokens). The token defines digital ownership and membership.

How and where can community tokens be bought?

Community tokens are bonded to USDC. Purchases of a community token are facilitated by a direct or underlying purchase of USDC traded to the community token. Users of Fundle can buy community tokens via our platform. When community tokens are bought, they are minted and sent to the buyer based on the current price and supply rate.

How and where can community tokens be sold?

When community tokens are sold, they are burned, and the current amount value in USDC is sent to the seller based on the current price and supply rate. After that, the USDC can be kept or transferred directly or indirectly to other currencies or fiat (USD or EUR)

Which factors influence the price of community tokens?

The price of community tokens will change over time. The variables that influence the price are the token's supply, and the holding patterns of community token holders.

If only a few community tokens exist, less USDC is necessary to mint a new community token. Contrary, if more community tokens already exist, more USDC is needed to mint a new community token.

How does the mechanism behind community tokens work?

The mechanism behind community tokens works as a token bonding curve (TBC). Simply explained, the mechanism is based on the relationship between the supply of the community token and its price. It acts as an underlying mechanism for an AMM (automated market maker) to facilitate buying and selling.

The influence of buying and selling the community tokens works as follows:

Buy $community -> $community minted -> increase in $community supply -> increase in price $community.
Sell $community -> $community burned -> decrease in $community supply -> decrease in price $community

So, the price of the tokens increases when more people join the community since the community will be worth more.

Why is a Token Bonding Curve (TBC) mechanism used?

The advantages of using this mechanism are that it ensures organic growth, enables continuous liquidity, and incentivizes long-term commitment. It also discourages pumps and dumps and gives predictability regarding price. Users can easily interact with this mechanism without complex listing procedures or intermediaries governing the purchase.